Effect of Gender on Access to Loans in Malawi

Elisa Nathan Ebiyamu *

School of Commerce, Malawi College of Accountancy, Malawi.

George Kaudza-Masina

School of Postgraduate Studies, Malawi College of Accountancy, Malawi.

*Author to whom correspondence should be addressed.


Access to loan is vital for households to supplement their current flow of income as they strive to meet their consumption and investment expenditure needs. The purpose of this study was to determine the effect of gender on access to loans and amount of money that is borrowed. This is a quantitative research that used secondary cross section data collected from all parts of the country by the Malawi National Statistical Office (NSO) called The Fifth Integrated Household Survey (IHS 5) data. This is cross section data that was collect in the period from 2019 to 2020. Data was analysed quantitatively by using descriptive statistics and econometric models. Probit model was used to assess the effect of gender on access to credit and a multiple regression was used to determine the effect of gender on amount of money a household borrowed. This study found that Malawians borrow money mainly for consumption. On access to loans, results show that, being female increases the probability of accessing loans but reduces the amount of borrowed money. Education was found to have positive effect on both access to credit and amount of credit. To increase the amount of money that women borrow, the study recommends that public loan programs like National Economic Empowerment Fund (NEEF) must put in place deliberate mechanisms aimed at increasing the amount of money they lend to women. On education, we recommend compulsory primary school education, Business Studies in secondary school education and Entrepreneurship module in Colleges. 

Keywords: Loan, gender, education, expenditure, entrepreneurship

How to Cite

Ebiyamu , Elisa Nathan, and George Kaudza-Masina. 2023. “Effect of Gender on Access to Loans in Malawi”. Asian Journal of Economics, Business and Accounting 23 (9):1-11. https://doi.org/10.9734/ajeba/2023/v23i9958.


Download data is not yet available.


EESC. Finsncial Education for all: Financial Education Statehies within the European Union (second ed.). Bruxelles, Belgium: European Economic and Social Committee; 2017. DOI:ISBN: 978-92-830-3493-3

NSO. (2020). The Fifth Integrated Household Survey (IHS 5) 2020 Report. Zomba: National Statistical Office. Available:http://www.nsomalawi.mw/images/stories/data_on_line/economics/ihs/IHS5/IHS5_Final_Report.pdf

OXFAM. Putting thr Power in Womwns' Hands: The Wogives Project in Malawi. Oxford : Oxfarm GB; 2015. DOI:ISBN 978-1-78077-818-1

NPC. EPD&PSR. Lilongwe: National Planning Commission; 2020. Available: https://npc.mw/wp-content/uploads/2021/02/MW2063-VISION-FINAL.pdf

NSO. Integrated Household Survey 2016-2016: Socio Economic Characteristics Report. Zomba: National Statistical Office; 2017. Available:http://www.nsomalawi.mw/images/stories/data_on_line/economics/ihs/IHS4/IHS4%20REPORT.pdf

NPC. National Economic Empowerment Policy Statements. Lilongwe: National Planning Commision; 2014. Available:https://cepa.rmportal.net/Library/government-publications/National%20Gender%20Policy%202015.pdf

Owusu S. Factors Affecting Farm Households' Access to Credit in the Afigya_Kwabre District of Ghana. International Journal of Scientific Research in Social Sciences & Management Studies | IJSRSSMS. 2017;98-113. DOI:ISSN Online: 2579 – 1928

Sekyi S. Rural Households' Credit Access and Loan amount in Wa Municipality, Ghana. 2017;256-214. DOI:ISSN:2146-4138

Diague A. Determinants of Household Access toi and Participation in Formal and Informal Credit Markets in Malawi. Washington , Washington , U.S.A; 1999.

Edriss AK. Distilled Econometrics. Using African Data with STATA. LUANAR, Lilongwe; 2019.

Gujarati DN, Porter DC. Basic Econometrics . New York: Mc Graw-Hill irwin; 2008.

Green WH. Economretric Analysis. New York: Prentice Hall; 2002.

Biyase M, Fisher B. Determinants of Access to Credit by Poor Households. Studia Universitatis Babeș-Bolyai Oeconomica.2017;590-60. Available:https://sciendo.com/abstract/journals/subboec/62/1/article-p50.xml

Jolex A, Kaluwa B. Crowding Out Effects of Alcohol Consumption Expenditure on Household Resource Allocation in Malawi. PLoS ONE. 2022;17(2):e0263330. Available:https://doi.org/10.1371/journal.pone.0263330

Daoud JI. Multicollinaerity and Regression Analysis. Journal of Physics: Conference Series; 2017. Available:https://www.researchgate.net/publication/322212939_Multicollinearity_and_Regression_Analysis/link/5a4c2980458515a6bc6bfa3d/download