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Towards an explanation of the failure of the internal governance system of microfinance institutions in the Democratic Republic of the Congo

Author

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  • Christian BUSHU MBEETSA

  • Serge DJOUM KOUOMOU

Abstract

Purpose: This study examines the internal governance system of microfinance institutions (MFIs) in the Democratic Republic of the Congo (DRC) to identify the reasons for their failure. The internal governance system is crucial for ensuring the transparency and efficiency of MFIs. \n Methodology: We use a qualitative methodology with a sample of 15 MFIs in the provinces of Nord-Kivu and Sud-Kivu. These provinces represent approximately 60% of the microfinance sector in the country, and they have been selected for their maturity and the crises or dysfunctions they have experienced. Thematic content analysis was used to categorise the verbatims using NVivo 12 software. \n Results: The results reveal seven categories of limitations in the internal governance system of MFIs in the DRC: regulatory and control, operational, commercial and financial, socio-political and economic, organizational and strategic, socio-cultural and technological. These dysfunctions have a negative impact on the performance and sustainability of MFIs. \n Originality: This study makes an original contribution by identifying these seven constraints. It is essential to understand the factors that explain these dysfunctions in order to remedy the failure of the internal governance system and to support the crucial role of microfinance in the DRC.

Suggested Citation

  • Christian BUSHU MBEETSA & Serge DJOUM KOUOMOU, 2025. "Towards an explanation of the failure of the internal governance system of microfinance institutions in the Democratic Republic of the Congo," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 16(1), pages 52-73, June.
    • Handle: RePEc:jaf:journl:v:16:y:2025:i:1:n:898
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    References listed on IDEAS

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    1. Marc Labie & Roy Mersland, 2011. "Corporate Governance Challenges in Microfinance," World Scientific Book Chapters, in: Beatriz Armendáriz & Marc Labie (ed.), The Handbook Of Microfinance, chapter 13, pages 283-298, World Scientific Publishing Co. Pte. Ltd..
    2. Darine Bakkour, 2013. "Un essai de définition du concept de gouvernance," Studies and Syntheses 13-05, LAMETA, Universtiy of Montpellier, revised Dec 2013.
    3. Gérard Charreaux, 1996. "Vers une théorie du gouvernement des entreprises," Working Papers CREGO 0960501, Université de Bourgogne - CREGO EA7317 Centre de recherches en gestion des organisations.
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    More about this item

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • N8 - Economic History - - Micro-Business History
    • G3 - Financial Economics - - Corporate Finance and Governance

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