Effect of Micro Finance on Poverty Reduction in Somalia: A Case Study in Mugadisho

The survey was presented empirical findings on the impact of Microfinance (MF) on the well-being and poverty mitigation in Mogadishu Somalia. Poverty is the number one problem in the world today as described by the following startling statistics: three billion people live below US$2 per day (World Bank, 2001) ; one and half billion people live below US$1 per day; 70-90 per cent of the great unwashed in the developing world are poor. The primary purpose of the current work is to asses Effect of microfinance institutions in poverty alleviation and to study the linkage between micro-credit program and poverty alleviation in Mogadishu using cross sectional information. The study was considered a descriptive research design and explanatory research design, The sampling frame describes how the sampling units of the study will deal. It will distinguish the list of all population units from which the sample will be taken. (Schindler, 2003). Sample of responding staff was made from 50 respondents from MFIs and some beneficiary group. From the survey findings, there were more male respondents having a shaping experience of between 1-5 years. The survey indicated that there was a positive correlation between independent variable and dependent variable. The goodness of fit was 76.1 %. The work recommended as follows: Those institutional banks should examine and choose the driver that best suits their organizations in order to achieve maximum delivery. The microfinance institutions should encourage the beneficiary group to assure that the poor peoples have set in place governance and policies to be adhered during delivery service. The microfinance institutions also urged to insure that there are always gender equality of delivery service between men and women