Saganga Kapaya – The Open University of Tanzania (OUT), Faculty of Business Management, Department of Accounting and Finance

Email: gasper.chuwa@must.ac.tz

Abstract: The research aimed to investigated the degree to which client appraisal relate to financial sustainability among Microfinance Institutions in Tanzania. And aimed to test the hypothesis, H1: client appraisal has a statistically significant positive relationship with the financial sustainability of microfinance institutions. It was informed by Resource Based View theory. The research employed an explanatory research design. In total 291 Microfinance Institutions from Dodoma, Iringa and Shinyanga regions were visited for data collection. Semi-structured questionnaire in form of 5-point Likert scale was a tool for data collection, and analysed by descriptive (inferential) method. Research findings revealed a negative but statistically insignificant relationship between client appraisal and financial sustainability (β = -0.196, p = 0.193). This research findings implied that client appraisal practices, as currently implemented in various Microfinance Institutions in Tanzania did not significantly predict financial sustainability. It was generally concluded that research findings underscored the complexity of multi-layered nature of financial sustainability in Microfinance Institutions in Tanzania. Besides, and the requirement for context-specific strategies that could balance risk management with operational flexibility. The subsequent recommendations were made, first, Microfinance Institutions need to strengthen client appraisal frameworks using predictive analytics and digital tools to improve risk assessment accuracy and minimize default rates. Second, regular training is needed be offered to Microfinance Institutions staff in order to maintain consistency and precision in evaluation processes. Future longitudinal research is needed which should include other variables including, macroeconomic trends, regulatory impacts, and client-level outcomes to minimise the limitations of present research.

Abstract: This paper examines the effect of Budgetary Control Practices on the financial sustainability of the AIDS Healthcare Foundation (AHF) in Rwanda, guided by the Resource-Based View (RBV) Theory and the Control Theory. The study investigates the role of budget Monitoring and Evaluation in ensuring the efficient use of financial resources and enhancing organizational performance. A descriptive research design was employed, utilizing both quantitative and qualitative methods. A sample of 132 respondents was selected, with data gathered through questionnaires and interviews. The results, analyzed using SPSS, revealed a strong positive correlation between BME and project performance at AHF, with a Pearson correlation coefficient of r = 0.705. Multiple regression analysis showed that BME significantly predicts project performance, with a standardized beta coefficient of -0.368 and a p-value of 0.000, confirming the statistical significance of this relationship. The findings emphasize that effective BME processes, as outlined by the Resource-Based View Theory, help leverage an organization’s internal resources for sustained financial performance. Moreover, the application of Control Theory ensures that systematic evaluation mechanisms are in place to monitor and correct deviations from financial goals. In conclusion, the study underscores the importance of robust budget monitoring and evaluation in enhancing financial sustainability and improving project outcomes at AHF. Based on these findings, the study recommends that AHF enhance its corrective action mechanisms, improve the regularity and effectiveness of budget reviews, and invest in tools to optimize resource allocation to better manage finances and achieve long-term sustainability.