Impact analysis of conventional and Islamic microfinance on poverty alleviation in Somalia

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Tezin Türü: Yüksek Lisans

Tezin Yürütüldüğü Kurum: İstanbul Ticaret Üniversitesi, Finans Enstitüsü, ULUSLARARASI FİNANS ANABİLİM DALI, Türkiye

Tezin Onay Tarihi: 2022

Tezin Dili: İngilizce

Öğrenci: YUSUF ABDI ADEN

Danışman: ŞENSOY NECDET

Açık Arşiv Koleksiyonu: AVESİS Açık Erişim Koleksiyonu

Özet:

Poverty has remained a global challenge across the continent as a significant proportion of the population is living within the internationally established poverty line. The highest incidences of poverty are greatly felt in SSA region as compared to Europe and Central Asia regions. Microfinance has long been recognized as a policy for poverty alleviation in developed and developing countries. However, the empirical results provide inconclusive, mixed and contradictory results of negative and positive nexus between microfinance and poverty alleviation. It is against this background that the present study was an impact analysis of conventional and Islamic microfinance on poverty alleviation in Somalia. The specific objectives of the study were: to determine the impact of Islamic microfinance services on poverty alleviation in Somalia; to establish the impact of conventional microfinance services on poverty alleviation in Somalia and to analyze the statistical difference between the impact of conventional and Islamic microfinance services on poverty alleviation in Somalia. These objectives supported the development of null hypotheses. The financial intermediation theory as well as the poverty theory provided anchorage to the study. The study targeted 750 active clients staying in Mogadishu Somalia from the conventional and Islamic microfinance institutions. Stratified random sampling was used to select 260 respondents. Information was obtained from primary sources guided by the questionnaire and the analysis was done through means and standard deviations, regression and one sample t-test and the findings presented through tables. The study established that Islamic microfinance services (β=.811, p 0.05, t<1.96). The study concludes the both microfinance institutions exert significant impact on poverty alleviation in Somalia irrespective of whether they are Islamic or conventional. The study recommends that the credit managers of the microfinance institutions in Somalia should ensure there is equality in access to microcredit, micro savings and micro insurance savings among male and female clients. The marketing managers of the microfinance institutions in Somalia should increase more awareness for more customers to take MFI services especially those in rural and remote areas