Microfinance and Women Empowerment in Ghana

Abstract

The majority of women enterprises are in the informal sector and they earn low incomes. Research has shown that microfinance is a development tool that can be used to empower women. However, there have been several discussions on whether microfinance serves the poor; since about 70% of the world poor are women. The study seeks to assess the role microfinance plays in the social and economic empowerment of women in Ghana. Probability and non-probability sampling techniques were used in selecting the sample population. Questionnaires are administered to respondents who had access to financial services from Opportunity International Savings and Loans. The study discovered that the majority of the women were traders and farmers in their 3rd cycle or more. Women reported improvement in both social and economic matters. Yet, they are still not up to date with recent technologies in accessing financial services and are comfortable performing transactions physically at the branch. Microfinance has demonstrated to be a critical instrument in empowering women from poor households by providing of financial services rather than just credit. Other financial products such as savings, investments and insurance aid in the empowerment of women; women can have some capital to rely on when faced with financial challenges. MFI's should intensify training of their clients on financial literacy, skills development, business advisory and good agricultural practices to enhance their competences and increase their yield/income.