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 programmes in the OR Tambo Coastal District (ORTCD) in the Eastern Cape, South Africa. The paper questions whether the services offered to microfinance clients can facilitate loan repayment and the sustainability of microfinance programmes. Precisely, the paper examines how the combination of financial and non-financial services facilitates loan repayment and the sustainability of these programmes. In the study, the recipients of microfinance loans in the OR Tambo Coastal District of the Eastern Cape were interviewed about the services offered by microfinance institutions. The study adopted a qualitative research approach and collected data through semi-structured interviews with recipients of microfinance loans in ORTCD. The collected data was analysed thematically following Braun and Clarke’s six-step approach, ensuring that codes and themes emerged inductively from participants’ narratives. The obtained results revealed that loan repayment and programme sustainability are shaped by the interdependent role of financial services (loan type and loan size) and non-financial services (technical assistance and client-institutional relationships). However, weak institutional ties and limited monitoring threaten long-term programme outcomes. The study’s findings suggest that combining financial and non-financial services improves repayment capacity, institutional confidence, and sustainability, particularly in underserved rural communities. Therefore, the study recommends strengthening training frequency, establishing continuous client evaluation mechanisms, and integrating institutional perspectives to improve the sustainability of microfinance interventions.