Abstract:
The study examined the impact of microfinance services on poverty alleviation in South Sudan,
specifically focusing on Fulla Sacco in Eastern Equatoria state. The research had three
objectives: to evaluate the correlation between credit services provided by microfinance
institutions and poverty alleviation, to assess the relationship between savings offered by
microfinance institutions and poverty alleviation, and to examine the impact of fund transfers
by microfinance institutions on poverty alleviation in Eastern Equatoria state.
The study utilized a descriptive approach with a case study design, incorporating both
quantitative and qualitative research methods to investigate the effects of microfinance services
on poverty alleviation. A sample size of 196 respondents out of a total of 400 was used, and
both primary and secondary data were collected. Data collection methods included self
administered questionnaires, focus group discussions, and documentary review. SPSS version
20 was utilized for data analysis, employing descriptive statistics to summarize the data.
The findings revealed that there was significant positive relationship between credit services
and poverty alleviation, microfinance savings showed a moderate positive impact on reducing
poverty. Additionally, fund transfers were found to have a statistically significant positive
relationship on poverty alleviation. The study concluded that microcredit played a crucial role
in improving basic needs and reducing poverty, and saving with microfinance contributed to
the development of rural areas.
Based on the findings, the study recommended that microfinance institutions like Fulla Sacco
expand their branches to reach grassroots populations, thus improving access to finance.
Additionally, it suggested that micro-credit services should focus on addressing clients' basic
needs to foster customer loyalty, offering favourable payment terms and low interest rates,
especially for low-income individuals within the community.
