IS MICROCREDIT A VIABLE STRATEGY FOR EMPOWERING WOMEN? A REVIEW OF SELECTED NGO PROGRAMMES IN AFRICA

Abstract

Micro-finance institutions (MFIs) grant micro-credits to hundreds of thousands of people, particularly women in developing countries with the aim of empowering them. The micro-credits in the form of small loans to women are considered a tool for empowering women toward change in their socio-economic conditions. This paper investigates the impact of micro-credit as a women’s empowerment strategy. It draws from various impact assessment studies on micro-credit programmes in Ghana, Cameroun and Gambia to examine issues on health and nutrition, education and skills development, income generation and, savings and investment as well as critique micro-credit policies and strategies. It reveals that micro-credit programmes are primarily reaching low income, moderately poor micro-entrepreneurs as target beneficiaries because majority of households have been able to acquire basic durable assets, such as bicycles, cooking pots, basins and roasters (cylinders). It concludes that micro-credit programmes have positive impacts on women and the poor in spite of their challenges. It recommends, among others, that micro-finance organizations revise their policies to address the challenges of women and target their socio-economic development needs and aspirations. Additionally, access to credit on sustainable basis is more important to the poor than receiving credit at subsidized interest rates.