The Role of Microfinance in the Empowerment of Women - An Example of Sinapi Aba Trust, Offinso Branch-Ghana

Abstract

Disempowerment among women due to certain cultural practices has been one of the main barriers to development in developing countries. It is a problem that developing countries governments cannot solve alone because of its financial implications. This as a matter of fact has necessitated the private sector or non governmental organizations to intervene in solving this problem. One of the means found to be effective is the use of microfinance and it is believed that with microfinance women can achieve some level of empowerment in their lives. The study aims at finding out whether there is a possible causal relationship between elements of SAT and the empowerment of women. SAT is chosen because it is a non governmental organization in Ghana that deals in microfinance in all the ten regions of Ghana. The Offinso branch is also selected because it has clients who are two years and above. Focus group discussions and an interview with women beneficiaries and loan officers of the Branch was carried out to find out whether there is really a possible correlation between access to microfinance and the empowerment of women. First of all, a brief introduction to the study is given, the general concept about microfinance and the conceptual framework to be used is narrated. In the findings and analysis it was realized that access to microfinance has effect on the individual, household/family, community and enterprise levels of beneficiaries. In that some were able to increase their savings level, diversify their business, and improve upon the living standards of their household. Notwithstanding these, the women complained about the group loans which seem to be the main product that the branch gives to them. It was therefore concluded that effort should be made to give the women more individual loans and faction out specific products that will meet/address the specific needs of these women.