Microfinance as a Mechanism for Women Empowerment: A Case Study of Techiman Municipality in Ghana

Abstract

This paper seeks to make an informed contribution to the ensuing debate on the real significance of microfinance as a strategic instrument for poverty reduction with particular reference to the empowerment of women in developing countries. Most women in these countries are faced with certain challenges which hinder the realisation of their full potential of capabilities. After a review of pertinent literature on microfinance and women empowerment, inferences are drawn for subsequent conclusion from a case study of women involved in the operations of the Opportunity International Savings and Loans Limited (OISL), a microfinance institution in the Techiman Municipality in Ghana. A census survey of the target group was intended but the practical realities of capture covered a high of 90 out of the total of 116 women beneficiaries representing a coverage of 77 percent at confidence level of 95 percent with an acceptable 0.05 margin of error. Market women who benefited from the company's microfinance Trust Group Lending Programme are empowered through the Opportunity International Savings and Loans Limited's microfinance programme not only in the areas of their businesses, but at household as well as at their group and therefore community levels. Nevertheless in the event, the men's contribution to the household expenditure decreased with the realisation that their women counterparts earned more income and were able to cover much of the household's expenses. The use of the weekly repayment schedule by Opportunity International Savings and Loans Limited's programme tended to be inconvenient since the business cycles of the women differed. The interest rate of 41 per cent charged by lending group was adjudged by the respondents as high. For effective and sustainable services' delivery, the Company required pertinent information on the needs of the market women so as to design products to meet the specific requirements. An arrangement of flexible loan repayment schedules for the market women will make the programme more productive and attractive to them. Opportunity International Savings and Loans Limited should also explore the possibility of family business loans delivery services to encourage cooperation between the husbands and wives.