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Financial Literacy of Financed Rural Development Projects and their Contribution to the Gross Domestic Product

Benias Mapepeta    
Rejoice Mandizvidza    


For rural development projects, prosperity hides in financial literacy. However, measurement of financial literacy hampers profitability evidenced through proper record keeping and accountability which has been a thorn in the flesh of the responsible ministries.   This research seeks to investigate financial literacy and proper record keeping in rural development projects and how it could be used to measure contributions to the Gross Domestic Product.  Thus, the major objective of this paper is to analyse financial record keeping and measurement of profitability in rural development projects in Zimbabwe.  The literature review was centred on the empiric researches and publications from other scholarly researchers.  The data that was collected was presented using frequency tables and graphs done using Microsoft Excel and Statistical Packages of Social Sciences (SPSS).  The researchers found out that even though the rural development projects are viable entities, there are not records to measure their profitability.  It was also found out that the there are other players taking advantage of non-record keeping capitalising on the profits of the rural development projects which makes them dwarf enterprises. The researchers concluded that if proper record keeping and financial literacy is to be implemented, measurement of profitability will be beneficial to both responsible authorities and policy makers. The researchers recommended that the stakeholders should work towards systemising record keeping and accounting systems that enables measurement of profitability amongst rural development projects.

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