Microfinance Outreach Programmes' Impact on Urban Informal Sector Workers in Mozambique: Job Creation Outcomes After Two Months

Microfinance outreach programmes have been introduced in Mozambique to support urban informal sector workers, who often face financial constraints and limited access to formal banking services. A qualitative ethnographic approach was employed, involving in-depth interviews with 30 urban informal sector workers who participated in microfinance outreach programmes across three municipalities in Mozambique. Participant observation and document review were also conducted to gather comprehensive data. Participants reported an increase of 45% in their employment status within two months, with a notable trend towards self-employment rather than wage-based jobs. Financial literacy training was highlighted as the most beneficial component of the programmes. Microfinance outreach programmes have shown promising job creation outcomes for urban informal sector workers after just two months, though significant challenges remain in terms of sustaining employment and addressing financial literacy gaps. Programmes should focus on long-term support through mentorship and networking opportunities to enhance the sustainability of participants' new businesses. Additionally, continuous financial education is essential to ensure effective use of funds for job creation.