Contact Us

For Marketing, Sales and Subscriptions Inquiries
Rockefeller Center, 45 Rockefeller Plaza
20th Flr Unit #5, New York, NY 10111
United States

Conference List

Micro-Credits and Poverty Reduction in Dar-Es-Salaam, Tanzania: A Case Study of Dar-Es-Salaam Commercial Bank

Amos Japhet Nsanganzelu

Amos Japhet Nsanganzelu 1

  1. Ph.D in Business Management (Finance and Accounting, BCom (Accounting), ADLTM, MIIA, MCILT 1

on Google Scholar
on PubMed

Pages: 1-13

DOI: 10.18488/journal.74/2015.2.1/

Share :


The purpose of this study was to examine the contribution of micro-credits on poverty reduction in Dar-es-Salaam, Tanzania. The study used a  sample of 200 respondents taken using simple random sampling, while data was collected using questionnaires and analyzed using statistical methods derived from the use of the Statistical Package for Social Sciences (SPSS) research which, when used, provides a variety of statistical measures like percentages, mean, standard deviation, variances etc. The study found out that Micro-credits contribute positively towards reduction of poverty for Dar-es-Salaam residents who are mainly neglected by the formal banking sector on the aspects of loans provision. The field results presented the following means: creation of employment 4.8300, increase level of income 4.3850, asset accumulation 3.6382, improve borrowers living standards 4.4050, create awareness to borrowing and resettlement monthly 3.8100, and promote respect and social dignity 4.6700 of the total sample. Added to the above, the study found that Dar es Salaam Commercial Bank contributed to the reduction of poverty and vulnerability of poor through enabling them to break the vicious cycle of poverty and also enabling them to enhance self-empowerment, respect and social dignity. The study concludes that micro-credits are a useful means for the poor section of the society to reduce or eliminate poverty. It enables the financially less fortunate members of our society to overcome financial inadequacies. The researcher, thus, recommends the following policy issues: development of ideal means for micro-credit institutions to serve more the section of the society that is neglected by the formal banking sector and assist in the enactment of appropriate micro-credit infrastructure and policies to reach the poor.
Contribution/ Originality
This paper’s primary contribution is finding out that micro-credits contribute positively towards reduction of poverty for Dar-es-Salaam (Tanzania) residents and that Micro-credit Institutions provide important services for these clients who are mainly neglected by the formal banking sector on loans provision, playing increasing vital roles in society development.




  1. Adesunmi, R., 2004. Mobilizing domestic resources for capital formation in Ghana: The role of informal financial sectors. AERC Research Paper No. 3.
  2. Ahmed, Z.S., 2000. Micro-credit financing and poverty reduction. Monthly Management Accountant Journal. November-December 2000, Institute of Cost and Management Accountants of Pakistan. Available from
  3. Bank of Tanzania, 2013. Annual Report. Dares Salaam.
  4. Brian, W., 2000. Dissertation skills for business and management students. London: Cassell Wellington House.
  5. Clement, C. and J. Terande, 2012. Microcredit as a strategy for poverty reduction in Makurdi local government area of Benue State. Nigeria International Journal of Humanities and Social Science, 2(12):179-186.
  6. Ghosh, D., 1990. Voices of the poor-can anyone hear us? , New York: Oxford University Press.
  7. Hashemi, S., S. Schuler and I. Riley, 1996. Rural credit programs and women’s empowerment in Bangladesh. World Development, 24(4): 635-653.
  8. Khandker, 1998. Fighting poverty with microcredit. London: Oxford University Press.
  9. Kothari, C.R., 2002. Research methodology: Methods and techniques. 3rd Edn., New Delhi: K.K. Gupta.
  10. Kothari, C.R., 2004. Research methodology: Methods and techniques. 4th Edn., New Delhi: K.K. Gupta.
  11. Latifee, H., 2003. Poverty reduction through microcredit. Paper Presented at the International Conference on Microcredits Held at Ceylan Inter-Continental Hotel, Taksim-Istanbul, Turkey, from June 09-10.
  12. Mamun, 2011. Examining the effect of participation in microcredit programs on assets owned by hardcore poor households in Malaysis. African Journal of Business Management, 5(22): 9286-9296. Available from
  13. Morduch, J., 1998. Does microfinance really help the poor?: New evidence from flagship programs in Bangladesh. Harvard: Department of Economics and HIID, Harvard University and Hoover Institution, Stanford University.
  14. Russel, A.S., 2006. A social and financial assessment of micro-finance for the extreme poor. Doctoral Dissertation. Lund University Centre for East and South East Asian Studies.
  15. Sekaran, U., 2006. Research methods for business: A skill building approach. 4th Edn., New York: John Wiley & Sons Inc.
  16. Social Science and Economic Research Unit (SERU), 1990. Impact assessment study on microcredit schemes. Malaysia: Prime Minister’s Department.
  17. Ssewamala, F.M., M. Lombe and J.C. Curley, 2006. Using individual development accounts for microenterprise development. CSD Working Paper No. 06-05. Center for Social Development, George Warren Brown School of Social Work, Washington University at St. Loui.
  18. Tokaman, V., 1996. Regulation and the informal economy: Micro-enterprises in Chile, Ecuador, and Jamaica. Boulder, Colorado: Lynne Rienner Publishers.
  19. United Nations, 2008. Supporting private industry. Financing of private enterprises development in Africa. New York: United Nations Publications.
  20. Weijland, H., 1999. Microenterprise clusters in rural Indonesia: Industrial seedbed and policy target. World Development Journal, 27(9): 1515-1530.
  21. World Bank, 2000. World development report 2000/2001: Attacking poverty. New York: Oxford University, World Bank Organization.
  22. Yunus, M. and A. Jolis, 1998. Banker to the poor: The autobiography of Muhammad Yunus, founder of the Grameen Bank. London: Aurum Press.


Google Scholor ideas Microsoft Academic Search bing Google Scholor


Competing Interests:


Related Article

( 1 ) Micro-Credits and Poverty Reduction in Dar-Es-Salaam, Tanzania: A Case Study of Dar-Es-Salaam Commercial Bank
( 2 ) Making Poverty A History in Africa: The Role of the G8
( 3 ) Fiscal Decentralization and Poverty Reduction: Citizens View
( 4 ) Good Governance, Rural Development and Poverty Alleviation in Nigeria: Issues and Challenges
( 6 ) Income Elasticity of Poverty: Estimates for South Asian Countries
( 7 ) Determining Rural Poverty in Manga Del Cura – Ecuador Non Delimited Zone
( 8 ) Interfaces Between Road Infrastructure and Poverty in Africa: The Case of Malawi, 1994-2013
( 9 ) An Analysis of Chinas Poverty Research Based on CiteSpace
( 10 ) Sectoral Credit Allocation of Deposit Money Banks and Poverty Reduction in Nigeria
( 11 ) Growing and Building: Collaboration of Urban Poverty Reduction Strategy
( 12 ) Perceived Poverty and Alleviation Efforts of Kogi State Community and Social Development Agencies in Kogi State: An Empirical Investigation
( 13 ) Financial Inclusion and Poverty Alleviation: The Contribution of Commercial Banks in West Africa
( 14 ) An Empirical Analysis of the Impact of Decentralization on Poverty in Cameroon
( 15 ) Exploring the Linkages between Remittances, Economic Growth and Poverty: Empirical Evidence from Pakistan
( 16 ) The Impact of Covid-19 Pandemic on the Global Economy: Emphasis on Poverty Alleviation and Economic Growth
( 17 ) The Impact of Trade on Poverty in Sub-Saharan Africa: Do Sources Matter?
( 18 ) Investigating the Nexus among Poverty Alleviation, Unemployment, and Economic Development in Nigeria
( 25 ) Factors Influencing Profitability of Commercial Banks in Tanzania: A Case Study of CRDB Bank Plc
( 26 ) Kashmir Peasant Economy under Dogra’s: A Case Study of Agrarian Produce and Livestock 1885-1925 A.D
( 27 ) Promoting Entrepreneurship through Open and Distance Education in Zimbabwe. A Case Study of the Zimbabwe Open University Students at Masvingo Regional Campus
( 28 ) Taylor Rule in The Context of Inflation Targeting: The Case of Tunisia
( 29 ) Geographical Starting Points the Analysis of Current Rural Problems in Montenegro: Case Study of Rural Local Community Kralje
( 30 ) Reminiscing Stock Splits Announcement: A Malaysian Case
( 31 ) Testing the Random Walk: The Case of Hong Kong Stock Exchange
( 32 ) Foreign Direct Investment (FDI) and Employment: A Case of Province of Punjab, Pakistan
( 33 ) The Association Between Corporate Risk Disclosure and Firm Performance in Emerging Country – The Case of Egypt
( 34 ) Local Governance and Service Delivery in Zimbabwean Local Authorities: The Case of Harare and Masvingo Urban Municipalities
( 35 ) Promoting Local Acceptability of International Oil Companies (IOCS) Through Corporate Social Responsibility (CSR): The Case of Tullow Oil in Ghana
( 36 ) Challenges and Survival Strategies for Women in Small Scale Catering Business: A Case Study of Siyaso Magaba, Mbare
( 37 ) Attributes Influencing Strategic Alignment in the Service Sector: An Indonesian Banking Sector Case Study
( 39 ) An Empirical Test on Effect of Intra-Product Trade on Regional Income Distribution: The Case of Liaoning, China
( 40 ) Effects of Advertising on Consumer Behavior in Low Density Houses: The Case of Marlborough, Zimbabwe
( 41 ) An Assessment of the Impact of Information Communication Technology (ICT) On the Administration of Public Records: A Case Study of the Bolgatanga Municipal Assembly in the Upper East Region of Ghana-West Africa
( 42 ) Investigating the Demand of Small Hotel and Restaurant Businesses for Bank Financing: The Case of Turkey
( 43 ) A Review on EU Transportation Projects within the Case of Turkey for European Union Regional Development Policy
( 44 ) Confirming the Mediation Effect of A Structural Model By Using Bootstrap Approach: A Case Study of Malaysian 8th Grade Students’ Mathematics Achievement
( 45 ) Forecasting-Based Carry Trade Using Pegged Currency: A Case of Omani Rial
( 46 ) A Theoretical Analysis Upon the Environmental Health and Justice Issue: A Case Study for a Comparison Between G20s Unitary and Federal Members
( 47 ) A Factor Analysis Approach Towards a Study of the Factors Affecting Students’ Choice of Higher Education Institution: A Case Study of a Private Institution (Twintech International University College of Technology)
( 48 ) Effects of Environmental Satisfaction on Family Displacement Case Study: Gohar Dasht Region, Karaj City
( 49 ) Rice Farmer and Capital Formation: A Case Study of Rice Farmer's Credit Cooperative in Itoikin, Ikosi-Ejirin LCDA, Lagos State
( 50 ) Investment Climate Rating Evaluation: The Case of Ukrainian Economy
( 52 ) National Security and Democratization in Nigeria: The Case of Insurgence
( 53 ) Internationalization of State Multilatinas: A Multi-Case Study in The Oil Sector
( 54 ) A Case Study of Local Government Implementation of the Ward Based Local Economic Development (LED) Program
( 55 ) An Evaluation of Effectiveness of Oversight Committees: A Case of City of Johannesburg, Section 79 Committees
( 56 ) An Investigation into the Causes of Failures in Railway Infrastructure at Transnet Freight Rail - A Case of the Steel and Cement Business Unit
( 57 ) Does Agricultural Sector Contribute to the Economic Growth in Case of Republic of Benin?
( 58 ) Investigate Airport Service Quality- A Case Study of Airports in Shanghai
( 59 ) The Impact of Organisational Culture on Public Sector Performance: A Case Study of Local Authorities in Zimbabwe
( 60 ) An Empirical Assessment of the Impact of Access to Credit on Farm Output: A Case Study of Sefwi-Wiawso Municipality Ghana
( 61 ) Determinants of Banks Profitability & Liquidity and the Role of BASEL III in Islamic & Conventional Banking Sector of Pakistan: A Case Study of NBP
( 62 ) Investigating the Impact of Business Alignment on Job Gratification in an Organization: The Case of a University in Egypt
( 63 ) Migration as a Livelihood Strategy: The Case of Internal Migration in Ghana
( 64 ) The Effect of Selected Factors on Tax Revenue Mobilization in Ethiopia: The Case of Amhara Region
( 65 ) Deterrents to the Success of Micro and Small Enterprises in Ethiopia: The Case of Amhara Region MSEs
( 66 ) The Mediating Effect of Financial Self-Efficacy on the Financial Literacy-Behavior Relationship: A Case of Generation Y Professionals
( 67 ) Rethinking Port Role as Transport Corridor under Symbiosis Theory-Case Study of China-Europe Trade Transportation
( 68 ) Re-Engineering Nigerian Economy through Human Capital Development: A Case of Manufacturing Firms In Southern Part of Nigeria
( 69 ) Analysis of Traffic Accident Occurrence at Hazardous Road Locations: A Case Study in Tunisia
( 70 ) Inflation, Oil Revenue, and Monetary Policy Mix in an Oil-Dependent Economy: Empirical Insights from the Case of Nigeria
( 71 ) Factors Influencing on Human Resources Development in SMEs Service Enterprises in Industry 4.0: The Case of Thai Nguyen Province, Vietnam
( 72 ) Fraud Auditing Law Implications in the Case of Jiwasraya Insurance in Indonesia
( 73 ) The Effects of Macroeconomic Variables on Bank Default: A Case Study in Brazil
( 74 ) The Problem of Distribution of Food Products and their Influence on the Decision of Purchasing in the Consumer a Case Study of Milk Products in the South, Algeria
( 75 ) The Promise and Reality of Public Sector Reform – A Case Study of the Implementation of Trinidad and Tobagos Health Sector Reform
( 77 ) Nexus among Foreign Exchange Reserve, Remittance and Trade Openness: An Empirical Investigation in the Case of Bangladeshi Economy
( 78 ) An Analyses of Exchange Rate Volatility: A Case of SANE Countries
( 79 ) The Influence of Organizational Culture, Communication and Work Satisfaction on Organizational Commitments: A Case Study of Lecturers at Yayasan Pendidikan Borobudur
( 80 ) Study on Environment and Energy Using Belonging Materials
( 82 ) Driving Role of Institutional Investors in the Indian Stock Market in Short and Long-Run – An Empirical Study
( 85 ) Study of the Relationship between Economic Growth and Inflation: Application to the Countries of the South Side of the Mediterranean: A Panel Data Approach
( 86 ) A Study of Transnational and Transformation Leadership Styles and Factors Affect The Leadership Style
( 87 ) Impact of Microfinance Lending On Economic Growth of Third world Nations: Study of Nigeria
( 88 ) The Recruitment of Migrant Workers in the Food Service Industry in Malaysia. A Study of Old Town White Coffee and Pappa Rich Kopitiam
( 90 ) A Mixed-Methods Study to Explore Stage of Readiness and Intention of Micro and Small Enterprises to Adopt Mobile Money in Indonesia
( 94 ) The Mediating Effect of Market Orientation on the Relationship between Entrepreneurial Orientation Dimensions and Organizational Performance: A Study on Banks in Libya
( 95 ) Opinion of Parents about Child Labour and Their Education – A Study
( 96 ) Measuring the Quality of Islamic Banks Services and Its Impact on Customers Satisfaction A Survey Study on the Islamic Banks Customers in Lattakia-Syria
( 97 ) The Internal Branding Process: Customer Reprofiling and Brand Positioning (Empirical Study on Traditional Snack Food in Bandung-Indonesia)
( 98 ) Managerial Judgement Versus Financial Techniques in Strategic Investment Decisions: An Empirical Study on the Syrian Coastal Region Firms
( 100 ) Studying the Integration of Damascus Securities Exchange with Selected Stock Markets
( 101 ) Market Share and Profitability Relationship: A Study of the Banking Sector in Nigeria
( 102 ) The Effect of Public Debt on Domestic Product and Unemployment (An Empirical Study on the Palestinian Economy)
( 106 ) Measuring the Quality of Health Services in Lattakia Province Patients' Perspective (Field Study of Health Centers in Jableh City)
( 109 ) Effects of Corporate Social Responsibility on Banks Financial Performance in Nigeria: A Study of United Bank of Africa
( 111 ) Under-Utilization of Female Capital: A Quantitative Study in Pakistani Perspective
( 112 ) Does Gold Price Lead or Lags Islamic Stock Market and Strategy Commodity Price? A Study from Malaysia
( 117 ) Study on the Effect of Foreign Investment on Anhuis Industrial Structure Optimization
( 120 ) Efficiency of Microfinance (MF) Institutions in Bangladesh: A Study on Top 10 MF Institutions
( 122 ) Factors Affecting the Capital Structure of the Textile Industry in Bangladesh: An Inferential Study
( 123 ) Corporate Social Responsibility Disclosure in Indonesia: A Bibliographic Study
( 124 ) Drivers Behind the Financial Insolvency: An Empirical Study on the Textile Industry in Bangladesh
( 125 ) Factors Influencing Audit Expense and Quality in an Emerging Economy: A Study on Bangladesh
( 126 ) Panel Data Estimators in the Presence of Serial and Spatial Correlation with Panel Heteroscedasticity: A Simulation Study