The Impact of Islamic Microfinance Institutions on Poverty Alleviation in Mogadishu-Somalia

International Journal of Research and Scientific Innovation (IJRSI) | Volume VII, Issue IV, April 2020 | ISSN 2321–2705

The Impact of Islamic Microfinance Institutions on Poverty Alleviation in Mogadishu-Somalia

Ismail Abdulnasir Garane, Abdoul Rahman Mhd Ramez Al Jounaidi
Department of Management, Al-Madina International University, Kualalumpur-Malaysia

Abstract-Islamic microfinance has stayed as a valuable way to deal with poverty alleviation, particularly in a developed nation. The services gave by the Islamic microfinance institutions could assist the poor with adjusting their costs, improve their dangers hunger, bit by bit develop capital, grow their businesses, and improve their nature of lives. All things considered, this study inspects the roles of Islamic microfinance in reducing poverty in Mogadishu, Somalia. Primary data was gathered using a simple random sampling technique; in view of this sampling method, questionnaires were self-managed to microfinance customers in rural area of Mogadishu, Somalia. Out of 300 polls conveyed, 288 properly finished were used for the analyses performed for this examination. Statistical Package for Social Sciences (SPSS) programming was used to analyse the data gathered to determine the relationships between funding satisfaction and poverty alleviation, standard of living of microfinance clients and poverty alleviation, and awareness of microfinance experience and poverty alleviation. The outcomes uncover that all independent variables employed in this study positively contributed to poverty decrease. As far as individual commitment, awareness of the microfinance experience was seen as the most significant factor that contributed to poverty mitigation, while funding satisfaction was minimal contribution to poverty alleviation in Mogadishu, Somalia. In light of these findings, implications of the study, recommendations, and proposals for future research were discussed.

Keywords: Islamic Microfinance; Poverty Alleviation; Institutions in Mogadishu, Somali.

I. INTRODUCTION

Allah (Subhanahu Wa Ta’ala) is the sole maker of this enormous universe and whatever it contains. He is the one who made man as a pioneer of His manifestations and elevated him to be His Khalifa on earth. He made each and every physical structure and various signs to give nourishment that human needs from the days of yore. It is from an Islamic perspective that everyone within the Islamic countries not only needs to rely on the development of the prosperity of the nation, but in addition to that, they devise important plans to satisfy their material desires through the meaningful use of the advantages and the scattering of products and adventures at reasonable prices and fully protect them from a wide range of fear other than Fear of Despair and Starvation (Personal et al., 2015).

Read More