An Investigation Into Micro-Financing By Agribank In Harare: A Case Study Of Wards 3, 4, 11 And 12 In Mbare.

ABSTRACT

This study sought to investigate the micro financing by Agribank in wards 3, 4, 11 and 12 of

Mbare in Harare. Mbare is one of the oldest townships in Harare and has the poorest people in

the city (Moyo, 2008). Therefore, Agribank earmarked to bring development in the area thereby

reducing poverty, creating employment and promote gender equality. The study is principally

qualitative and quantitative in nature as it sought to provide an in-depth analysis of micro

financing by Agribank. The researcher used descriptive survey design. In addition, for the

purpose of data collection, the study relied on the use of questionnaires and interviews to

establish the impact of micro financing by Agribank. A group of 104 respondents that included

100 beneficiaries and 4 Agribank field officers were sampled using simple random sampling and

purposive sampling. The demographic variables of the respondents that were analysed include

gender, age and education level. The findings of the study revealed that more women

participated in the study as compared to men. Mostly young men and women accessed

microfinance for their small businesses. Moreover, the study found out that micro financing by

Agribank was a vehicle for eradicating poverty as many households consumption increased. The

micro financing programme created employment among the youths and adults as they engage

into informal businesses. Furthermore, findings show that Agribank micro financing achieved

gender equality through women empowerment. However, they were dissenting voices among

the respondents that Agribank was utilised by the ZANU PF (Zimbabwe African National Union

Patriotic Front)politicians as campaigning strategy in order to gain political mileage. It was

therefore recommended that Agribank seek credit lines or be in partnership with well-funded

institutions in order to improve the liquidity challenges. The Government of Zimbabwe must

subsidise microfinance loans through the bank to achieve low interest rates for the poor people.

To reduce the intrusion by ZANU PF politicians in the operations of the bank it was

recommended that the bank be privatised. The research study is significant to Agribank

management in determining areas for improvement so as to ensure their success and enhance

service delivery so that the low income earners and those who do not have bank accounts have

the same opportunities of accessing financial services.