TOWARDS WOMEN'S EMPOWERMENT IN PERI-URBAN TAMALE, THE ROLE OF MICROFINANCE

Abstract

Over the years, the relationship between micro finance and women's empowerment remains a controversy that has caught the attention of many researchers and analysts. Largely, this controversy has been viewed from two perspectives - the Optimists and the Pessimists perspectives. While the latter hold the view that microfinance does not necessarily inure to the empowerment of women, the former argue the relationship is positive and spiral. Against this background, this study was carried out to investigate and contribute to how micro finance affects the empowerment process of women. A multi-stage sampling technique was used to select 192 respondents from the study population. The Statistical Package for Social sciences (version 16.0) and Microsoft Excel tools were used to analyze the data. The study found that respondents were engaged in several economic activities with ago-processing representing_ 50.5% of activities in the area. Meanwhile, the major challenge confronting businesses in the area related to accessibility to credit facilities and represented 52% of responses. The findings also revealed that the provision of micro finance services transcended financial intermediation to social and enterprise development services. While accessibility to these services was linked to the credit cultures and organizational orientations of MFIs, the repayment capacities of beneficiaries was overarching. As well, micro finance was found to have both financial and material effects on beneficiaries. Aside increased income levels (71.6%) and their attendant., economic and material improvements, beneficiaries also enjoyed improved gender and basic power relationships (84.2%). Savings was also found to play an important role in building the financial independence of beneficiaries. As much as 80% of beneficiaries raised part of their business finances from personal savings. Meanwhile, there is the need to promote the forward and backward linkages that connect producers to buyers to enhance business development in the area. Secondly, MFIs must relax their eligibility criteria to enable more people benefit. This would not only help the beneficiaries to build sustainable savings culture, but would also assist these MFIs to raise funds at cheaper costs, increase their outreach and enjoy economies of scale. Finally, the provision of microfinance services must be responsive to the peculiar needs and tastes of beneficiaries.