Microfinance in DRCONGO

One of the socio-economic development indicator of a society is Microfinance Institutions (MFI) and banking sector.  Especially the micro-finance which enables low earning individuals to get access to working capital to develop their livelihoods.  All over the world micro-finance is considered to the complement of banking sector which mostly provides credit to the rural small businesses.  Roy and Goswami (2013) in their review of 71 journals articles concludes that microfinance have a positive impact on the wide range of economic and social indicators including, better access to education for children, grater empowerment of women and increased participation of women in social and political activities.  Ever since the emergence of the idea of microfinance it has helped millions come out of poverty (Waweru & Spraakman, 2012).   MFI operations pursue two main objectives one is economic and other is social.  The success of an MFI is measured based on the fulfilment of these objectives.

The system of credit and lending have existed for long; Romans, Greeks, Chinses and Indians all have been practicing the borrowing and lending using interest rates (Ismail & Salavat, 2006).  The very recent concept of microfinance started in 1976 when a Bangladeshi man name Muhammad Younis gave a 27$ loan to 42 women to start small economic activity and give the money back later on.  His idea starts to grow and eventually in the 80s and 90s in Bangladesh and other places microfinance activities became the center point of poverty alleviation.