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The Impacts Of Commercialization On Depth, Breadth, Scope, And Quality Of Outreach In Mozambique: A Case-Study, Courtney Johnson

Stevenson Center for Community and Economic Development—Student Research

In today’s microfinance, scholars and policy-makers across the world have emphasized the importance of financial sustainability, or the ability of a microfinance institution (MFI) to finance its operations. In order to reach financial sustainability, MFIs embrace commercialization, a process where an MFI undergoes restructuring in order to open up avenues to capital. Yet, scholars are concerned that this emphasizes on financial sustainability will cause the social good objective to suffer, a phenomenon known as “trade-off.” Indeed, studies have found that commercialization impacts MFI outreach in various ways. To my knowledge, no research has attempted to understand the impacts of commercialization …