Some rural development experts consider micro-financing as a panacea for food insecurity and rural
poverty alleviation. Development policies in favour of the rural poor using micro-financing have had
positive but insufficient impacts on the conditions of poverty. The study uses a combination of primary
and secondary data to make a spatio-temporal analysis of micro financing based on the innovation
diffusion model. It appraises the techniques of micro credit diffusion, maps the spatial diffusion trends
and analyses the evolution of the adoption process. The study like previous ones concludes that the
micro credit scheme has had positive but insufficient impacts on agricultural development. It therefore
identifies the bottlenecks in the use of micro financing in favour of the rural poor and the scope to
achieve a successful design of a community-based financial institution which is best adapted to rural
realities and will be accepted by local financial institutions and by the rural people alike. Micro
financing should aim at making available financial and technical assistance to the poor by adapting to
local realities, linking structures with the informal financial sector of the micro economy and innovating
institutions and procedures for access to credit.