Microfinance and poverty alleviation: selected evidences from Togo

Microfinance, the provision of financial services to the poor population in developing countries, is used as an effective tool in alleviating poverty in many countries in the developing world, especially in Asia and Africa. Microfinance is well practiced in Togo, which is a country located on the west coast of Africa. Poverty is the inability of someone to live above the poverty line. The country has a poverty rate of 73.4%. What role does microfinance play in alleviating poverty in Togo? The village of Kouve, located in the southern part of the country, was selected to conduct the research study. To achieve the objective of the study, quantitative research methodology is conducted with multiple regression and chi-square as statistical approaches. The multiple regression was used to predict the dependent variable, daily per capita expenditure (DPCE) with the four independent variables: saving, children education expenditure, household nutrition and healthcare expenditures. The general conclusion of the study, microfinance does not alleviate, nor does it impact poverty in the village of Kouve.