Questioning the sustainability of pro-poor consumer lending in Pretoria : a qualitative case study

Abstract

•• Objective: This article aims to assess the impact of microfinance’s consumer-lending approaches in supporting financial and poverty alleviation objectives. •• Research design and methods: A qualitative case study of one microfinance organisation in Pretoria was conducted. Data was collected using a semi-structured questionnaire. •• Main results and findings: Microfinance has great potential to stimulate financial stability at local levels. Results suggest that presently financial sustainability is the primary concern of microfinance institutions, and to improve their financial viability, they are progressively offering a wide variety of products and services similar to those of banking institutions. •• Conclusion and contribution to the body of knowledge: As with other financial services providers, past demarcations of financial institutions appear to be fast diminishing. To remain competitive, as it targets higher LSM markets, the MFI increasingly is improving its corporate image and identity.