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The role of micro finance Institutions in poverty reduction in the central region of Ghana
Cudjoe, Bismark
The overall objective of this study is to examine the contribution of micro-finance institutions to poverty reduction in the Kasoa district of the Central Region of Ghana. In an attempt to achieve the objective of the study, data and hypotheses were drawn from First Capital Plus Microfinance Limited which has been operating in the Kasoa Municipality since 2009. The practical part contains primary statistical data through survey research, which consists of a combination of structured questionnaires, interviews, focus group, and participatory methods to collect qualitative data from program beneficiaries and MFI's institutions. Wellbeing variables such as women empowerment, household assets , savings mobilising, household income, start-up capital and business development were used as benchmark variables to investigate the contribution of microfinance institutions to poverty reduction in the Kasoa district area. The study also made use of secondary data to reinforce theoretical arguments on micro-finance and poverty reduction. The results emanated from the administered questionnaires, interviews and participatory approach reveals a favourable relationship between micro-finance and the benchmark variables as a sizeable number of the program beneficiaries attested to a certain level of improvement in their living conditions upon joining the micro-finance program. However, in as much as the positive effects the study also witnesses some challenges inhibiting the growth of micro-finance institutions in the area such as institutional challenges, dishonest staff and beneficiaries, interest rate, markets and infrastructure linkages which, if it is well addressed by policy makers, micro-finance will contribute meaningfully in the fight to reduce global poverty not only in Ghana but also many less developed countries (LDCs).
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