Microfinance Institutions And Women Economic Empowerment In Arusha District Council, Tanzania

EXTENDED ABSTRACT

Women’s access to microfinance services is considered as a doorway towards women’s economic empowerment. Conversely, it is also argued that Microfinance Institutions are extracting money from poor women through high interest rates. The objective of this study was to examine whether and to what extent women’s access to microfinance services has facilitated this course.The study was conducted in Arusha district council. A crosssectional research designwas adopted. Quantitative data were collected by the use of a questionnaire whereby 120 women of whom 60 were MFI’s beneficiaries engaged in income generating activities and 60 non-beneficiaries were involved in the study. Key informant interviews were also used to collect qualitative data. Quantitative data were analysed using the Statistical Package for Social Sciences (SPSS) wherebydescriptive and inferential statistics were computed.Likert and Index scales were constructed to gauge attitude towards MFIs and empowerment. Binary logistic regression analysis was used to identify factors influencing the accessto MFIs services. T-test was used to compare the level of empowerment between beneficiaries and non-beneficiaries. The relationships between socio-demographic characteristics like age, education level, family size and economic empowerment were not significant except marital status. The relationship between microfinance services and women economic empowerment was statistically significant(P < 0.005). It is concluded that access to micro financeservices has a positive impact on rural women’s economic empowerment and can contribute into livelihoods improvement. It is recommended thatgovernment and non-governmental organisations should expand and facilitate financial access to rural women and broaden the financial sector client base so as to contribute to an improved livelihood. The Government of iii Tanzania, through its specific microcredit schemes like Women Development Fund, Women’s Bank, and other financial institutions targeting women; have to scale up the outreach of microfinance services to rural women