Factors influencing the financial sustainability of selected microfinance institutions in Namibia

Abstract

This report applied Ordinary Least Squares to an Analysis of Covariance model consisting of cross-sectional data that captured various features of selected microfinance institutions in Namibia to identify the factors that influenced their financial sustainability. The report found that in 2005 all the selected microfinance institutions in Namibia were not yet financially sustainable. The degree of financial unsustainability was lowest for term micro-lenders and was highest for multi-purpose co-operatives involved in the provision of microfinance.