AN INVESTIGATION INTO THE IMPACT OF MICROFINANCE ON WOMEN IN GHANA: A CASE STUDY OF SINAPI ABA TRUST, KUMASI

ABSTRACT

The study was to investigate the impact of microfinance institutions in the livelihood of women using Sinapi Aba Trust, in Central Market and Bantama sub metro in the Ashanti region. The researcher gathered the data through the use of questionnaires and interviews. Questionnaires were given to women who could read and write to fill. Interviews were conducted with some staff of the MFI about the organization and the performance of Microfinance Scheme. A sample of forty of them was interviewed with questionnaire, outlining all the possible questions required under the study. The essence of this MFI is to help poor people especially women who lack access for finance and tries to provide a means through which poor individuals can financially sustain themselves. The researcher reveals that women default on loan less than men and credit extended to women has much greater impact on household consumption and quality of life at children. The reason is that, microfinance does not reach the poorest of the poor is because of discrimination by loans officers. Based on these factors, the study made recommendation to the government to pay more attention to the microfinance sector in Ghana. Rules and regulations concerning this sector should be made flexible for the establishment of more MFI’s to enable them carry on banking services for the poor people.