A Study on the Effectiveness of Micro-Finance in Sustainable Rural Development: A Case of Kenema District Micro-Finance Institutions, Sierra Leone

Microfinance, also called microcredit, is a banking service provided for low-income individuals or unemployed people who does not have other access to financial service. They do not have enough money to do business and are deprived of traditional financial sources. Microfinance is assisting the underprivileged, particularly in rural areas in this perspective. With the financial support from the microfinance sector, rural women all around the country have experienced significant improvement. Kenema District is the subject of the study. This study evaluates whether microfinance actually assisted the underprivileged in rural area in the Kenema District, Eastern Province. and aims to study how the poor people’s standard of living has altered since they joined in microfinance and if microfinance has benefited the people in the district under investigation. Data is collected with a sample size of 99 using a survey method through a structured questionnaire. Pearson Correlation, Group Statistics, and Independent Samples Test were conducted to enable the achievement of the hypothesis and find answers to research questions. The respondents felt that microfinance led to economic development and finally it is concluded that microfinance plays an important role in rural development.

Keywords: Micro-Finance, Sustainability, Rural, Development, Sierra Leone.