Micro-Credit Institutions’ Services and Sustainability of Micro, Small and Medium-Scale Enterprises During Covid-19 Pandemic in Kigezi Region, South Western Uganda.

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Kabale University


The study examined the effect of Microcredit institutions' services on the sustainability of micro, small and medium-size enterprises of the Kigezi region, South Western Uganda during the Covid-19 pandemic. The specific objectives were to: determine the effect of loan provision by microcredit institutions on the sustainability of MSMEs; determine the effect of the provision of the saving account by microcredit institutions sustainability of MSMEs, and, investigate the effect of the provision of Managerial skills on the sustainability of MSMEs during Covid-19 pandemic in Kigezi Sub-Region, Uganda. The study was conducted in the Kigezi region of Uganda. The region has six (6) districts namely: Kabale, Kisoro, Kanungu, Rukungiri, Rubanda and Rukiga. The Kigezi region is situated in Southwestern Uganda. It is a very hilly, cold and mountainous region bordering the Republic of Rwanda and the Democratic Republic of Congo. Because of its hills, mountains and cold weather, people call it the Switzerland of Africa. It is full of Agricultural Terraces and is home to the world-famous mountain gorillas. According to the National Census of 2014 and the Uganda Bureau of Statistics (UBOS) Household survey of 2016, the region has a population of about 1.5 million people from the six (6) districts (Kabale, Kanungu, Rukungiri, Rubanda, Rukiga and Kisoro). The sample size was computed using Yamane's sampling formulae (Yamane, 1967) and was based on a 5% level of precision. A cluster sampling procedure was applied to select the enterprises' respondents. Enterprise owners and managers were the units of inquiry due to their importance as custodians of information on all the activities taking place in their respective MSMEs (Rhodes, 2009). The research population was divided into clusters (areas or districts) and the required sample was selected using simple random sampling. The study used an interviewer-administered structured questionnaire to collect the data. The value of CVI obtained was 0.78 while the value of reliability obtained was 0.767, which indicates that the questionnaire items were relevant and suitable for the study. Three hundred and twelve (312) questionnaires were administered while a total of two hundred and ninety-four (294) MSMEs returned the filled questionnaires, giving the return rate as 94.2%. The results indicate that a one-unit increase in Loan Provision would cause about 0.048 unit increase in Sustainability of MSMEs; one-unit increase in Saving Account would produce about 0.125 unit increase in Sustainability of MSMEs, and one-unit increase in Training on Managerial Skills would bring about 0.309 unit increase in Sustainability of MSMEs. This suggests that increases in Loan Provision; Saving Accounts; and Training in Managerial Skills help to increase Sustainability. The study concludes that loan provision by microcredit institutions did not sustain MSMEs during the Covid-19 pandemic in Kigezi Sub-Region Uganda; accessing an adequate amount of credit is an important factor in increasing the development and growth of SMEs; and, increasing Saving accounts and Training on Managerial Skills will increase Micro-credit Institutions’ Serviceability of MSMEs. The researchers recommend the use of sensitization of the clients and the use of other marketing tools. The researchers also recommend Emphasizing training (managerial skills), especially in financial management to support their clients to improve their business performance regularly and most cases should be tailored toward the training needs of the clients




Agaba, Moses, Kaaya, Siraj & Nafiu, Lukman Abiodun (2022). Micro-Credit Institutions’ Services and Sustainability of Micro, Small and Medium-Scale Enterprises During Covid-19 Pandemic in Kigezi Region, South Western Uganda. kabale: Kabale University.