An assessment of factors affecting monitoring and evaluation of projects funded by microfinance institutions (MFIs) in harare metropolitan province: a case study of MFIs funded by Zimbabwe microfinance fund (private) limited

Abstract

In Zimbabwe, the mention of microfinance is synonymous with greediness as providers of microfinance services have a history of and presently focusing on money lending characterised by high interest charges rather than focussing on financing development projects. The creation of Zimbabwe Microfinance Fund in 2011 saw the reorientation of the microfinance sector to focus on poverty alleviation through development projects. However, monitoring and evaluation are important in assessing if a project is achieving its goals. Each project has different monitoring and evaluation needs depending on the operating context. This study sought to establish the factors affecting monitoring and evaluation of projects funded by MFIs by focussing on a portfolio of twenty-three (23) institutions funded by ZMF. The study found out that staff skills, resources allocation, institutional policies and management style are the factors that affect monitoring and evaluation of projects funded by MFIs in Harare. Therefore, the study recommends that staff should be equipped with the relevant skills to carry out monitoring and evaluation while resources should be adequately availed for each and every project funded in order to achieve its intended results. This is in addition to institutional policies that support the role of monitoring and evaluation and management style that is flexible for implementation of monitoring and evaluation systems. The study also showed that the four factors (staff skills, resources allocation, institutional policies and management style) have positive relationships with monitoring and evaluation which are all statistically significant confirming that improvement of the same will in turn improve monitoring and evaluation of projects. The study concluded that establishment of a generic framework for monitoring and evaluation of projects in the sector, offering capacity building to MFIs and technical support, promote efficient monitoring and evaluation of projects. Finally, the study highlighted that an investigation into the impact of monitoring and evaluation of projects funded by MFIs be considered for future studies, especially in the Zimbabwean context