Microcredit regulations, challenges, and operations in cape verde (effects of microcredit in fostering financial inclusion in cape verde

• Autor(a) principal: Okenna, Nwabueze Prince
• Data de Publicação: 2022
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/152708
• topic: Financial inclusion; Microcredit; Cabo verde; Msmes; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

As an individual component, this paper investigated the various microcredit regulations, challenges faced by these small and medium sized businesses, and key characteristics on their operations through field interviews that was conducted in Cape Verde on some of the key stakeholders (representative of the Central Bank of Cape Verde and the Ministry of Finance). Cape Verde is an archipelago country composed of 9 inhabited islands with a combined land area of about 4,033 square kilometres. It is ranked 110 out of 137 countries in terms of its global competitiveness, and has one of its most problematic factors for doing business as access to financing facilities for entrepreneurs. This has mitigated the expansion of small and medium sized business structures (SME´s), and contributed to significantly to the predominance of the conduct of economic activities by informal SME´s which are dispersed across the nine inhabited islands. This study found that the microfinance offices at the Central Bank (BCV) started operation in the year 2019, although its regulations have been in place since 2016. The study found that one of the core advantages of the microcredit in Cape Verde which makes it desirable by the members of the public and businesses is its ease of accessibility with no collateral facilities. In terms of financial transaction, a majority of transactions are done in cash. Furthermore, the study equally found aside from absence of basic finance facility, financial literacy, and the absence of coordinated social data, and a centralized information access system where both the public, the Central Bank, and the various MFI´s can access useful information that contains key indicators, interest rates, and repayment mechanisms a strong concern. In other to provide the credit applicant with basic financial skills, the respective MFI