The Impact Of Microfinance On Poverty Alleviation And Living Standards Improvement In Eritrea

The study presents descriptive and empirical findings about the Impact of the Microfinance on poverty alleviation and Living Standards Improvement in Eritrea: It also examines the role of Microfinance on women’s Empowerment and on the level of income and savings of the clients.The study employed four different analytical methods: Regression,Correlation,Independent Sample T-Test and Paired Sample TTest to analyze the impact of the MFIs on the above listed statements respectively.The study was founded on primary data collected from the clients through the questionnaires.The investigation evaluates the extent to which the MFIs(SMCPs)in Eritrea had positively helped the deprived to progress their standards of living and alleviate their poverty level in the country.The research also finds that the MFI(SMCPs)play a significant impact on the women’s contribution in the economy and It also enhances the level of income and savings of the clients after they get access to the microcredit activities in their surroundings.The paper concludes the MFIs in Eritrea plays a significant part in the poverty mitigation and improve the standards of living of the relatively poor economically active clients through its significant impact on the enhancement of the saving and income level of the clients and through the empowerment of women’s participation in the economy of households.It suggested that;Microfinance would grasp its potential,completely only if It is incorporated into a country’s ordinary polices,Therefore,however the compulsory savings helps the clients positively to encourage for repayment of the loan taken;it also creates a negative impact on the poverty alleviation program in the country,thus the policy makers they have to make in favor of the client’s need considering to the risk associated with.