Paper Title
Financial Innovations and Microcredit Development in a Sub-Saharan African Economy

Abstract
This study examines the benefits and challenges of financial innovations in a rural African economy where conventional banking facilities are yet underdeveloped. The focus economy is the Sub-Saharan African country of Uganda. The ultimate intent is to analyze the strengths and weaknesses of the group loan model, a key feature of the microcredit business in that economy. The study concludes with a set of policy recommendations designed to enhance the performance and sustainability of this type of microcredit group loan model. In this study, data were collected through semi-structured interviews. Empirical data were also collected from the Management Information System (MIS) database and the published annual reports over the last five years of the MFI (2013-2018). In addition to a spreadsheet analysis of the surveyed responses, SPSS statistical package was used to analyze all data for statistical significance. As the study discovered, it enforces prudent conduct in particular in the use of borrowed funds. Further, it empowers women, who are often disenfranchised in the larger society. All of this serves to improve the living standards of everyone involved. In the case of Uganda, this microcredit model has significantly helped mitigate problems of adverse selection and moral hazard among the members. Such group loan organizations maintain a constitution and bylaws which contain important regulations designed to strengthen the operational efficiency of the business. Keywords - Financial Innovations, Group lending, Group leader, Microcredit, Microfinance.