Critical Success Factors For Microfinance Institutions in Zambia

Microfinance Institutions (MFIs) have played an important role in the economic growth of Zambia and other developing countries, however most MFIs have now become commercialised and benefit less from donor funds than previously. The scarcity of donor funds, unsustainable business practices, rapid and increased competition amongst MFIs has made their survival a challenge, with visibly a high rate of inactive MFIs and very few recent success stories. The evolving nature of the microfinance market has changed the perception and understanding of what constitutes success for MFIs. This shift emphasises the importance of good financial and social performances by MFIs in order to be viable. The need for MFIs to understand their critical success factors in order to achieve their objectives and goals cannot be emphasised enough. The MFIs must ensure their customers are retained, ensure that loans disbursed are repaid on time, paid in full and provide innovative services in order to be in business. This book provides an insight into the critical success factors for MFIs from a finance and social performance perspective, with emphasis on the country Zambia.