SOCIO-ECONOMIC ANALYSIS OF LIVELIHOOD STRATEGIES OF RURAL WOMEN BENEFICIARIES OF MICROCREDIT IN THE TOLON/KUMBUNGU DISTRICT OF THE NORTHERN REGION OF GHANA

Abstract

The purpose of this study is to estimate the extent to which socio-economic characteristics, operations of microcredit institutions and community related factors influencing livelihood sustainability of rural women borrowers of microcredit. The study was conducted in the Tolon/Kumbungu District of the Northern Region of Ghana. Close and open-ended questionnaires, in-depth interviews, focus group discussions and direct observations were all used in collecting data from 150 women beneficiaries of microcredit sampled for this study. The research reveals that, almost all (90%) of the interviewees engaged in more than one livelihood strategies or income generating ventures, with more than two-third (72%) of them undertaking petty trading and agro-processing as their main source of income. Age, education level and type of main livelihood venture, were found to influence significantly women borrowers’ ability to reduce vulnerability context associated with their livelihood ventures as a way of improving their livelihood sustainability. Also, women borrowers who received relatively higher amount of loan were found to have improved on their livelihood assets holdings and better prepare to withstand vulnerability context associated with their enterprises than those who received relatively small amount of loan. In addition, respondents from communities which main source of water was less than 2km away were found more likely to belong to the category of respondents who have enhanced their livelihood asset holdings since they started benefiting from microcredit than those who have to travel more than 2km to fetch water. The study recommends among others things, the provision of training to women borrowers to help build and enhance their managerial, vocational and entrepreneurial skills, and the need for the formulating and implementation of gender sensitive land tenure system to help improve women farmers’ access to land.