Gender and Poverty Reduction in Ghana: The Role of Microfinance Institutions

Abstract

Inequality between men and women is widely acknowledged across many parts of the globe. For example, among paid employees in Ghana, women’s average hourly earnings were around 67% of men. The disparity in earnings perpetuates poverty. Access to financial resources is widely regarded as crucial machinery to addressing this gender disparity and reducing poverty among women. Microfinance is a conduit to increasing access to finance among poor urban and rural women who usually lack the collateral to access loans from traditional financial institutions. Notwithstanding the vital role microfinance institutions play, there is no consensus on the assertion that its impact is generally favourable. Therefore, this study investigated the role of microfinance on health, education, and standard of living, as dimensions of poverty reduction in the Techiman Municipality of Ghana. The results indicate that access to microfinance services positively correlates to health, education, living standards and poverty reduction. Therefore, it is essential to extend the reach of microfinance services to increase access further to finance and, consequently, accelerate the rate of poverty reduction within the Municipality.

The low odds of poor women with small business loans emerging from poverty: Critical social policy implications for Pakistan

“…Similarly, loan size, installment rate, and insurance schemes for health and savings are critically important for poorer loan takers who belong to a region plagued by natural disasters, health crises, and unexpected business slumps (Dyar et al, 2006; Meyer, 2002). Belonging to a state that does not have universal health coverage, not participating in a private health insurance scheme, or not receiving support from MFP for health insurance, also has an influence on business development and productivity in poor women (Batinge & Jenkins, 2021; Zaidi et al, 2009). Poor families are known to have lower nutritional intake, making them more vulnerable to health challenges, including communicable and non‐communicable diseases, which can affect productivity negatively (Phipps, 2003).…”

Recruitment and Selection, Training and Development on Job Satisfaction Mediated by Motivation: Exploratory and Confirmatory Factor Analysis in the Ghanaian SMEs

“…They also contribute to reducing poverty, empowering individuals (Ewusie et al, 2021), especially women (Addai, 2017), and SMEs financially, and improving living standards, an element of the Sustainable Development Goal thus, reducing poverty. Batinge and Jenkins (2021) identified that aside from microfinance institutions (MFI) offering financial assistance, MFI also offer services to women which include training on financial management, skill development and other social services in order to help enhance the welfare of the women. It is also crucial to the socio-economic development of nations.…”

The Efficacy of VICOBA Intervention in Alleviating Poverty in Emerging Economies: A Study of the ORGUT SEDIT VICOBA Lending Scheme Project in Morogoro, Tanzania

“…Information from the Global Findex database can provide insights into the reach and effectiveness of microfinance institutions such as VICOBA in addressing financial exclusion and promoting economic empowerment among marginalised populations. The effectiveness of microfinance interventions in poverty alleviation has been highlighted in various contexts, including rural areas, Bangladesh, and Ghana (Kasali et al, 2017;Ali et al, 2016;Batinge & Jenkins, 2021). Despite debates about the depth of outreach required to address the demands of poverty reduction adequately (Ali et al, 2015), the microfinance subsector is widely recognised as capable of alleviating poverty even in impoverished areas (Annim & Alnaa, 2013), with particular emphasis on its role in ensuring poverty alleviation for women in Africa (Batinge & Jenkins, 2021).…”

“…The effectiveness of microfinance interventions in poverty alleviation has been highlighted in various contexts, including rural areas, Bangladesh, and Ghana (Kasali et al, 2017;Ali et al, 2016;Batinge & Jenkins, 2021). Despite debates about the depth of outreach required to address the demands of poverty reduction adequately (Ali et al, 2015), the microfinance subsector is widely recognised as capable of alleviating poverty even in impoverished areas (Annim & Alnaa, 2013), with particular emphasis on its role in ensuring poverty alleviation for women in Africa (Batinge & Jenkins, 2021). Even with the increasing number of microfinance interventions such as VICOBA implementations, there is a rising need to examine their effectiveness in poverty alleviation.…”