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Assessing the Impact of Rural Microfinance on Socio-Economic Development: A Case Study of Chimwala Village, Mangochi District

Mateo Kanthunkako*

DMI-St. John the Baptist University, Mangochi, Malawi.

Periodicity:September - December'2025

Abstract

Microfinance has been recognized as a crucial tool for fostering economic growth and improving livelihoods in rural areas by providing access to credit for small businesses and households. This study assesses the impact of rural microfinance on socio-economic development in Chimwala Village, Mangochi District. Using a mixed-methods research design, it combines primary data gathered through questionnaires from 250 rural respondents with secondary data from existing literature. Data were analyzed using SPSS, focusing on means, standard deviation, and correlation analysis. Findings reveal that microfinance institutions (MFIs) have had a significant impact on outreach, financial inclusion, borrower welfare, and economic empowerment, though challenges remain in areas such as interest rates, accessibility, and loan flexibility. The study concludes with practical recommendations for MFIs, rural communities, policymakers, and regulatory bodies to enhance the developmental role of microfinance in rural Malawi.

Keywords

Microfinance Impact, Socio-Economic, Financial Inclusion, Borrower Welfare, Rural Economic.

How to Cite this Article?

Kanthunkako, M. (2025). Assessing the Impact of Rural Microfinance on Socio-Economic Development: A Case Study of Chimwala Village, Mangochi District. i-manager’s Journal on Economics & Commerce, 5(3), 1-6.

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Assessing the Impact of Rural Microfinance on Socio-Economic Development: A Case Study of Chimwala Village, Mangochi District

Abstract

Keywords

How to Cite this Article?

References

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