A dissertation submitted in partial fulfillment of the requirements for the award of the degree of bachelors of applied accounting: auditing and information systems BAA-AIS MCA 2016 DU0017

Since the 1990s, poverty reduction has been taken as priority at both national and international development levels. Within this framework, various initiatives have been taken. Micro-finance has caught the attention of many aid donors, NGOs and Government as an effective tool for poverty reduction. The successful use of micro-finance to considered a victory for the poor to escape the poverty traps. In count's poverty reduction strategy papers. Therefore the study analyzes the role of Micro-finance in poverty reduction in Blantyre, Malawi context.

The study takes a case study of Opportunity Bank Malawi which is one of the largest micro-finance institutions in terms of scale and geographical coverage. The researcher interviewed 60 families in the district and the findings show that there is a noticeable and positive impact of Micro-finance activities on the living standards, empowerment and poverty alleviation among the poor in the society. However, the researcher emphases a need for human information flows. There should be intensification of the functional literacy programme for adults being run by the non-formal education division of the ministry of education; together with Association of Rural and Community Banks, the Department of Development community and agricultural extension services. More rural women need to be sensitized and psyched up through financial literacy campaigns so as to change their negative perceptions of borrowing from the MFIs.