THE IMPACT OF MICROFINANCE PROGRAMME PARTICIPATION ON HOUSEHOLD FOOD SECURITY IN MALAWI

Year 2020, , 204 - 222, 30.06.2020

Miss Tikhala Chilimba Hannah Dunga Chengedzai Mafini

https://doi.org/10.34109/ijefs.202012113

Cited By: 5

Abstract

This article empirically examines the impact of microfinance programme participation on household food security in Malawi. There has been an increase in the role of micro activities such as microfinancing that target the poor, vulnerable, and marginalised people in development agendas. This makes it essential to assess the effect of micro activities, for example, microfinance programmes on welfare indicators such as food security. The study used cross-sectional data that was collected in Malawi for the Third Integrated Household Survey in 2010-2011. It employed the Heckman Selection Model, which was deemed applicable since the selection to participate in credit programmes is typically non-random. Total real annual consumption per household was used as a proxy to capture household food security. The results of the study indicate that females contribute more to the food security state of a household than males. It also established that education level significantly and positively contributes to the state of household food security. Lastly, the study established that households that participated in microfinance programmes experience improvements in their status of food security. In light of this, it recommends that policymakers expedite the operationalisation of microfinance programmes with the intent to increase participation by improving policies such as the Microfinance Policy and Action Plan (2002). There should also be an increase in adult literacy programmes and development of microfinance institutions that target women.

Keywords

Agricultural sector, microfinance, food security, household

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