Islamic microfinance in Mauritania: an investigation into involuntary factors affecting usage

Maouloud, Vatimetou Mokhtar and Kassim, Salina and Othman, Anwar Hasan Abdullah (2021) Islamic microfinance in Mauritania: an investigation into involuntary factors affecting usage. International Journal of Ethics and Systems. ISSN 2514-9369

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Abstract

Purpose – This study aims to identify the involuntary barriers of financial inclusion which are affecting the usage of Islamic microfinance services in PROCAPEC institution located in Nouakchott-Mauritania. Subsequently, it also examines the effect of gender as a moderator in the model. Design/methodology/approach – Primary data was collected through a cross-sectional questionnaire from 381 beneficiaries of PROCAPEC – a major Islamic microfinance provider in Mauritania. In methodology, the study uses confirmatory factor analysis to identify relevant involuntary factors affecting usage, followed by structural equation modelling to test the impact of these factors on the usage of Islamic microfinance (IsMF) products. Findings – Two of the four factors are statistically significant in affecting the usage of IsMF products, namely, affordability and eligibility. Gender is a moderator in the relationship between affordability and usage, as well as eligibility and usage. Practical implications – Policymakers, practitioners and managers of Islamic microfinance institutions can consider these factors and focus on strategies, including pricing and promotion, which aim to further develop the Islamic microfinance industry in Mauritania. Also, reducing documentation required from clients and adopting lenient rules to provide suitable products will enhance the use of IsMF products, which may lead to more customers’ attraction. Originality/value – Although several researchers have articulated financial inclusion, this study sheds light on a specific dimension of financial inclusion to determine the factors impacting IsMF products’ usage. In Mauritania, there are few studies about microfinance. This study will be amongst the pioneer contribution to the geographical gap.

Item Type:	Article (Journal)
Additional Information:	8713/89955
Uncontrolled Keywords:	Financial inclusion, Structural equation modelling, Islamic microfinance, Poverty alleviation, Mauritania, Involuntary barriers
Subjects:	H Social Sciences > HJ Public Finance > HJ1438 Public Finance In Islam
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Asst.Prof Anwar Hasan Abdullah Othman
Date Deposited:	28 May 2021 08:21
Last Modified:	24 Jun 2021 11:29
URI:	http://irep.iium.edu.my/id/eprint/89955

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