Published October 11, 2025 | Version v1

FINANCIAL INCLUSION OF WOMEN AND ECONOMIC PROFITABILITY OF MICROFINANCE INSTITUTIONS IN SUB-SAHARAN AFRICA

Description

The study analyzes the impact of the percentage of female borrowers on the profitability of microfinance institutions (MFIs) in sub-Saharan Africa. Based on the observation that some MFIs fail to achieve financial viability or stray from their social mission by prioritizing profitability, the study examines whether offering services to women contributes to their success or failure. The difficulties faced by MFIs include poor governance, credit risk, exchange rate risk, liquidity risk, and over-indebtedness. The hypothesis tested is that the percentage of female borrowers significantly influences the profitability of MFIs. Using a hypothetical-deductive method and data from Mix-Market (2012-2016) on 140 MFIs, analyzed via linear regression in panel data (STATA 14), the results show that the percentage of female borrowers and the 30-day risk portfolio have a significant negative impact on the profitability of MFIs. This is due to the small scale of women's economic activities, often intended for everyday consumption, and their family responsibilities, which increase the risk of micro-project failure. These findings confirm some studies (Adair & Berguiga, 2018) but diverge from others (Churchill & Marr, 2017) due to contextual differences (cultural, social, economic, political).

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