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Islamic microfinance in Mauritania: an investigation into involuntary factors affecting usage

Vatimetou Mokhtar Maouloud (Institute of Islamic Banking and Finance, IIBF, International Islamic University Malaysia, IIUM, Kuala Lumpur, Malaysia)
Salina Kassim (Institute of Islamic Banking and Finance, IIBF, International Islamic University Malaysia, IIUM, Kuala Lumpur, Malaysia)
Anwar Hasan Abdullah Othman (Institute of Islamic Banking and Finance, IIBF, International Islamic University Malaysia, IIUM, Kuala Lumpur, Malaysia)

International Journal of Ethics and Systems

ISSN: 2514-9369

Article publication date: 19 May 2021

Issue publication date: 16 July 2021

207

Abstract

Purpose

This study aims to identify the involuntary barriers of financial inclusion which are affecting the usage of Islamic microfinance services in PROCAPEC institution located in Nouakchott-Mauritania. Subsequently, it also examines the effect of gender as a moderator in the model.

Design/methodology/approach

Primary data was collected through a cross-sectional questionnaire from 381 beneficiaries of PROCAPEC – a major Islamic microfinance provider in Mauritania. In methodology, the study uses confirmatory factor analysis to identify relevant involuntary factors affecting usage, followed by structural equation modelling to test the impact of these factors on the usage of Islamic microfinance (IsMF) products.

Findings

Two of the four factors are statistically significant in affecting the usage of IsMF products, namely, affordability and eligibility. Gender is a moderator in the relationship between affordability and usage, as well as eligibility and usage.

Practical implications

Policymakers, practitioners and managers of Islamic microfinance institutions can consider these factors and focus on strategies, including pricing and promotion, which aim to further develop the Islamic microfinance industry in Mauritania. Also, reducing documentation required from clients and adopting lenient rules to provide suitable products will enhance the use of IsMF products, which may lead to more customers’ attraction.

Originality/value

Although several researchers have articulated financial inclusion, this study sheds light on a specific dimension of financial inclusion to determine the factors impacting IsMF products’ usage. In Mauritania, there are few studies about microfinance. This study will be amongst the pioneer contribution to the geographical gap.

Keywords

Citation

Mokhtar Maouloud, V., Kassim, S. and Othman, A.H.A. (2021), "Islamic microfinance in Mauritania: an investigation into involuntary factors affecting usage", International Journal of Ethics and Systems, Vol. 37 No. 3, pp. 390-405. https://doi.org/10.1108/IJOES-11-2020-0176

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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