• Matanda Ephraim
• Chindara Tawona Matirokisi

This paper investigates the impact of both operating costs and non-performing loans (NPLs) on the performance of microfinance institutions (MFIs) in Zimbabwe in the 21st century. Literature on the roles, costs and impact of MFIs on the growth and development of countries of the world is streamlined and discussed based on global, continental, regional and Zimbabwean experiences. We used an exploratory qualitative design to determine the effects of operating costs and NPLs on performance of MFIs in Zimbabwe. The study drew data from a sample of 125 respondents to come up with findings on the effects of operating costs, micro-loans, asset quality and NPLs on financial performance of MFIs, banks and similar institutions. The study discovered that both operating costs and NPLs have a strong negative relationship with financial performance of MFIs. We recommend that banks and MFIs need to effectively manage their operating costs and NPLs in their desire to maximize financial performance, investments, asset accumulation, generate wealth for shareholders, and act as engines of growth of their countries towards sustainable development.

operating costs, non-performing loans, micro-finance, micro-finance institutions, micro-loans, asset quality

"The Impact of Operating Costs and Non-performing Loans (NPLs) on performance of Micro-Finance Institutions (MFIs) in Emerging Economies: A Case Study of MFIs in Zimbabwe (2010-2020)", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.9, Issue 8, page no.e384-e407, August-2022, Available :http://www.jetir.org/papers/JETIR2208446.pdf

"The Impact of Operating Costs and Non-performing Loans (NPLs) on performance of Micro-Finance Institutions (MFIs) in Emerging Economies: A Case Study of MFIs in Zimbabwe (2010-2020)", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.9, Issue 8, page no. ppe384-e407, August-2022, Available at : http://www.jetir.org/papers/JETIR2208446.pdf