THE SOCIO ECONOMIC IMPACT OF MICRO CREDIT ON RURAL WOMEN IN GHANA

Abstract

In recent time's shea butter and rice processing has emerged as a promising economic activity. Shea butter especially has gained international recognition because of its therapeutic properties and the local is deemed to be high nutritional value than the imported foreign rice. The study basically sought to find out how micro credit has impacted on rural women involved in the production and processing of rice and shea butter. In view of the objectives stated, various research methodologies were adopted. The qualitative and quantitative research approach was deemed suitable because it allowed the researcher to collect information from multiple stakeholders to facilitate understanding of the dynamics and peculiarities of providing microcredit to rural women and marketing of these commodities in the Tamale Metropolis. The research revealed several pressing issues among which include dominance of contract financing, lack of marketing finance. NGOs and a few financial organizations have taken steps to respond to these critical issues and realized some successes like the establishment of contract financing transactions and technical support services for producers, but much still needs to be done. In view of the constraints and potentials, major recommendations proposed in the short term include the need for; the establishment of equipment and marketing financing scheme for shea butter and rice producers, the expansion of micro finance services, the provision of support services to sustain financing schemes, literacy training for producers, effective collaboration among stakeholders, monitoring and evaluation of financial and technical support services, among others. Additionally, Production finance which is handled basically by private entrepreneurs is fairly appreciable. Marketing finance and support services were however deficient. In view of this, effective implementation of the suggestions could lead to the improvement of production and marketing of rice and shea butter in the Tamale Metropolis and eventually result in poverty reduction and development especially among rural women.