Authors : Chilekwa Chibuye; Dr. Chisala Bwalya

Volume/Issue : Volume 11 - 2026, Issue 7 - July

Google Scholar : https://tinyurl.com/7b86zv8j

Scribd : https://tinyurl.com/24vzcs35

DOI : https://doi.org/10.38124/ijisrt/26jul168

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : Microfinance has emerged as a powerful instrument for advancing financial inclusion, stimulating entrepreneurship, and reducing poverty among marginalized populations in developing countries. Since its modern conceptualization in the 1970s through Muhammad Yunus's Grameen Bank model, microfinance has continued to expand globally, with significant adoption in Sub-Saharan Africa. In Zambia, microfinance institutions (MFIs) such as Ecobank Zambia, Vision Fund Zambia, and AB Bank Zambia have played an increasingly vital role in supporting women-led enterprises—particularly in peri-urban and rural districts such as Chongwe in Lusaka Province. Despite this progress, women micro-entrepreneurs continue to face substantial barriers including limited access to capital, high interest rates, inadequate financial literacy, and disruptions caused by social and environmental challenges. This study investigates the effectiveness of microfinance in enhancing the growth of women-led small and medium enterprises (SMEs) and alleviating poverty within the informal sector of Chongwe District. The research examines whether increased access to micro-credit translates into improved income, asset ownership, decision-making power, and broader economic empowerment for women micro-entrepreneurs. The study further explores how enterprise-focused credit models may both support and constrain empowerment outcomes, considering local dynamics and operational limitations within MFIs operating in the district. The study is guided by three specific research objectives: RO1: To examine how microfinance influences women's income, asset ownership, economic decision-making, and poverty reduction in Chongwe District's informal sector. RO2: To assess how micro-credit for enterprise development contributes to the economic and social empowerment of women microentrepreneurs in Chongwe District. RO3: To evaluate suitable micro-credit approaches for poverty alleviation and women's empowerment, and to analyse the challenges faced by microfinance programs within Chongwe's rural context. Correspondingly, the research addresses three core questions: RQ1: What impact has microfinance had on income, assets, decision-making, and poverty reduction among women micro-entrepreneurs in Chongwe's informal sector? RQ2: To what extent does micro-credit for enterprise development promote the economic and social empowerment of women microentrepreneurs in Chongwe District? RQ3: What micro-credit strategies best support poverty reduction and women's empowerment in rural Chongwe, and what obstacles do microfinance programs encounter in implementation? Findings from this study are expected to contribute to improved microfinance strategies specifically tailored for women-led SMEs, inform operational adjustments within MFIs, and support policy initiatives aimed at sustainable economic growth and poverty alleviation among women in Zambia's informal sector. The research will provide evidencebased recommendations for strengthening microfinance delivery mechanisms and enhancing their effectiveness in promoting women's economic empowerment in rural and peri-urban contexts.

References :

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• Journal Articles

11. Mukendi, S. and Manda, S. (2022) ‘Micro-Financial Institutions and Processes of Women Empowerment in Zambia’, World Development Perspectives, 28, 100466. Available at: https://eprints.whiterose.ac.uk/id/eprint/191597/3/Micro-Financial%20Institutions%20and%20Women%20Empowerment%20in%20Zambia_Accepted%20Manuscript.pdf (Accessed: 22 September 2025).
12. Chanda, M.K. (2016) ‘Assessment of the Outreach of Microfinance Institutions to Rural Women in Zambia’, University of Zambia Institutional Repository. Available at: https://dspace.unza.zm/bitstream/handle/123456789/4537/Chanda.M.Kalasa0001.PDF (Accessed: 22 September 2025).

• Newsletters / Case Studies

13. Alliance for Financial Inclusion (2023) Increasing Women’s Financial Inclusion and Closing the Women’s SME Credit Gap in Zambia through Enabling Financial Policy and Regulation. Available at: https://www.afi-global.org/old/wp-content/uploads/2023/07/Zambia-Increasing-Womens-Financial-Inclusion-and-Closing-the-Womens-SME-Credit-Gap-Through-Enabling-Financial-Policy-and-Regulation.pdf (Accessed: 22 September 2025).

• Internet Sources

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• Reports

16. World Bank (2021) Access to Finance and Capacity Building of Women-led Small and Medium Enterprises in Zambia. Available at: https://documents1.worldbank.org/curated/en/576591618321561334/pdf/Access-to-Finance-and-Capacity-Building-of-Women-led-Small-and-Medium-Enterprises-in-Zambia.pdf (Accessed: 22 September 2025).