Dissertation (MA International Relations)This study examined the contributions of Micro finance Institutions to changing poor people‘s economic status, focusing on Basic Resources across Communities (BRAC) in Dodoma Municipality The objectives of the study were: to examine the roles of BRAC in changing poor people‘s economic status. To analyze the challenges facing BRAC in loans delivery systems to its clients. To assess the direct and indirect costs that BRAC clients incur when accessing Microfinance services. The study was guided by the following research questions; what is the role of BRAC Microfinance institution in changing poor people‘s economic status? What are the challenges facing BRAC Microfinance Institution in loans delivery systems to its clients? What are the direct and indirect costs incurred by BRAC clients when accessing Microfinance services? The study involved 5 BRAC officials and 95 BRAC clients that made a total sample size of 100 respondents, which employed purposive and simple random sampling methods. The methods used to collect relevant data included Interview method, Questionnaire method and Documentary Review. The Statistical Package for Social Sciences (SPSS) was used for data analysis. Study findings have revealed that, increase in income as well as savings is mostly associated with the establishment of economic empowerment because income, savings and employment opportunities are interrelated. It is therefore recommended that, BRAC microfinance officials should take cognizance of the fact that, decisions on whether and how to intervene in local financial markets should not be taken without prior knowledge of the working of those markets.