Bridging Regulatory Worlds: Strengthening African Microfinance through Legal Insights from the European Union

This thesis provides a comparative legal analysis of microfinance regulatory frameworks across the European Union (EU) and selected African jurisdictions—namely Kenya, Nigeria, Ghana, and Rwanda. It explores how legal architecture, regulatory governance, and socio-economic impact shape the resilience, outreach, and ethical integrity of microfinance institutions (MFIs). Drawing upon law-and-development theory and regulatory institutionalism, the study constructs a three-pillar analytical framework to evaluate country-level legislation, supervisory models, and client protection mechanisms. EU MFIs, often governed by nonprofit structures and ethical codes, exhibit flexible regulation and integrated services. In contrast, African MFIs operate under formalized, tiered licensing regimes, with varying enforcement intensity and capacity limitations. The research identifies systemic challenges within African legal environments, including fragmented classification, weak supervision, and vulnerability to borrower exploitation. Reform proposals—adapted from EU best practices—include legal simplification, risk-based oversight, ethical governance mechanisms, and regional harmonization strategies. The thesis ultimately underscores that microfinance regulation must be contextually anchored, ethically sound, and institutionally supported. It contributes to law and development scholarship by illuminating the intersection of financial inclusion and legal design, offering a roadmap for reform that balances control with community empowerment.