Financial Inclusion in Burundi: The Use of Microfinance Services in Semi-Urban Areas

Bazira Bigawa Abel ()
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Bazira Bigawa Abel: University of Burundi, Burundi

Journal of Economic Development, 2020, vol. 45, issue 3, 101-116

Abstract: This research tried to analyze the ability of microfinance institutions to become effective alternatives to traditional banks in order to improve financial inclusion of low-income populations in Burundi. After analyzing data with logistic regressions (logit), we found that microfinance institutions contribute (i) to address barriers to financial inclusion, (ii) to foster the accessibility to formal financial services for men/women, married individuals, low-income people, educated individuals, and (iii) to facilitate the use of formal financial services by low-income populations living in Burundi semi-urban areas. However, microfinance should not be seen as the ultimate solution to break-up the poverty cycle for low-income populations in developing countries like Burundi, but rather as a driving for the socio-economic development of low-income individuals so that they can gradually increase their participation in the community development activities.

Keywords: Financial Inclusion; Access Barriers; Microfinance Institutions; Semi-urban Areas; Burundi (search for similar items in EconPapers)
JEL-codes: G21 O16 O55 P34 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:jed:journl:v:45:y:2020:i:3:p:101-116

DOI: 10.35866/caujed.2020.45.3.005

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