Sustainability of Microfinance Programmes: The Case of O R Tambo Coastal District, Eastern Cape, South Africa

This paper explores the factors influencing the sustainability of microfinance pro-grammes in OR Tambo Coastal District (ORTCD) in the Eastern Cape, South Africa. The paper questions whether the services offered to microfinance clients can facilitate the sustainability of microfinance programmes. Following that financial and non-financial service can as well facilitate the sustainability of microfinance programmes. In the study, the recipients of microfinance loans in the O R Tambo coastal district of the Eastern Cape were interviewed about the financial and non-financial services offered by microfinance institutions. The study adopted a qualitative research approach. The data was collected through semi-structured interview and was analysed using thematic approach. The obtained results revealed that the sustainability of microfinance pro-grammes were influence by the interdependent role of financial services (loan type and loan size), and non-financial services (technical assistance, client-institutional relationships).