Determinants for Sustainability of Microfinance Institutions in North “A” District in Zanzibar

Sustainability of microfinance institutions has been at the centre many studies in industry because it provides a promising direction for improved access to financial services. This paper examines determinants sustainability North “A” district Zanzibar. The specific objectives study were establish operational self-sufficiency MFIs, institutions, and determine factors influencing self-sufficiency. Primary data collected from 150 randomly selected members 50 purposively leaders using questionnaires checklists. Quantitative analyzed descriptive statistics, one-way analysis variance (ANOVA) multiple linear regression. It was found that expended high administrative expenses compared operating which are likely affect their self-sufficiency, thus, generating low profit. Microfinance had capital base time, jeopardized sustainability. Return on assets contributed more institutions’ revenue return equity deposit mobilization. Number active borrowers loan portfolio have significant influence area. Loan negative (p = 0.057) whereas interest rate charged significantly 0.069) associated with institutions. recommended should minimize order ensure profits not affected by expenses. also diversify other profitability businesses increase base.