Problems experienced by South African microfinance institutions (MFIs) : priorities and trends

Volschenk, Jako (2002-12)

Thesis (MBA)--Stellenbosch University, 2002.

Thesis

ENGLISH ABSTRACT: The efficiency and availability of financial services for the poor is a global problem, and has only recently started to enjoy attention in South Africa. This dissertation aims to study the problems experienced by the South African microfinance industry, which includes a vast range of financial products. The survey conducted of the South African industry indicates that its makeup is significantly different from the industries in Latin America and Asia. The problems in the industry are prioritised and show the high cost structure to be the most pressing issue. A number of these issues show agreement as expressed by Spearman rank correlation coefficients. Clear trends exist between distinct market-segments in the industry. Tests for differences in location of specific populations indicate significant differences in perceptions regarding these segments. The government's recent suggestion to unify the financial service regulators into a mega-regulator is based on the assumption that the microcredit and commercial credit industries share the same priorities and problems. The very low Spearman rank correlation coefficient found in this study, on the other hand, seems to indicate that no reason exists to assume the priorities are the same at the two levels. Finally, it is shown by means of a "best practice matrix", that solutions to most problems can be found, but that the fit is dependent on a large number of variables.

AFRIKAANSE OPSOMMING: Die beskikbaarheid van finansiële dienste vir armes is 'n wêreldwye probleem, en het eers onlangs meer aandag in Suid Afrika begin geniet. Hierdie studie fokus op die probleme wat ervaar word in die mikrokrediet (mikrolenings) industrie. Die opname toon dat die Suid-Afrikaanse industrie beduidend verskil in samestelling van die ooreenstemmende industrieë in Suid-Amerika en Asië. Die probleme in die industrie is geprioritiseer en toon dat die hoë koste-struktuur die grootste probleem is. Sekere kwelpunte toon ooreenstemming, uitgedruk by wyse van Spearman se rangkorrelasie-koëffesiënt. Duidelike tendense bestaan tussen onderskeie mark-segmente in die industrie. Toetse vir ooreenstemming in die ligging van sekere populasies toon beduidende verskille in persepsies rakende hierdie segmente. Die regering se onlangse voorstel om die beheer-liggame van finansiële dienste saam te snoer in een liggaam is gebaseer op die aanname dat die mikrokrediet en kommersiële krediet industrië dieselfde probleme en prioriteite deel. Die baie lae Spearman rangkorrelasie-koëffisiënt impliseer egter dat daar geen grondige rede bestaan om aan te neem dat die prioriteite dieselfde is vir die twee vlakke nie. Laastens word beste praktyke aangedui in die vorm van 'n "beste praktyk matriks". Oplossings vir byna alle probleme kan gevind word, maar die toepaslikheid is afhanklik van 'n wye verskeidenheid veranderlikes.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/53021
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