Micro-finance services and livelihood of vulnerable businesswomen in Nimule municipal council, South Sudan, a case study of rural finance initiative (RUFI).

Abstract

This study examined the effect of micro-finance services on the livelihoods of vulnerable women entrepreneurs in Nimule Municipal Council, South Sudan, with a focus on the Rural Finance Initiative (RUFI). The research aimed to assess how credit accessibility, savings mobilization, and financial literacy training influence income levels, asset ownership, food security, standards of living, and business sustainability among women engaged in micro-enterprises. Employing a mixed-methods approach with a cross-sectional design, the study sampled 87 women from a target population of 120, using random and purposive sampling techniques. Data collection involved structured questionnaires and key informant interviews, with validity and reliability ensured through expert review and pilot testing. Quantitative analysis using correlation and regression revealed that credit accessibility (r=0.487, β=0.487, p=0.000), savings mobilization (r=0.512, β=0.512, p=0.000), and financial literacy training (r=0.534, β=0.534, p=0.000) all had significant positive effects on livelihood outcomes, with financial literacy training being the strongest predictor, explaining 28.5% of the variance. Qualitative insights from RUFI staff underscored that micro-finance facilitates business start-up and expansion, improves income, and enhances social cohesion through savings groups; however, challenges such as high interest rates, collateral demands, inflation, and inadequate training delivery hinder optimal outcomes. Findings also indicated that despite access to micro-finance, many women continue to face food insecurity, limited asset accumulation, and business fragility due to economic volatility and systemic barriers. The study concludes that micro-finance services positively influence livelihoods but are constrained by structural and contextual factors. It recommends that RUFI adopt more flexible loan terms, introduce inflation-protected savings products, tailor financial literacy programs to local languages, and improve scheduling and ongoing training to enhance livelihood sustainability. Overall, the research underscores the critical role of comprehensive, context-specific micro-finance interventions in empowering vulnerable women in fragile economies like South Sudan.