MICRO-CREDIT AND SUSTAINABLE LIVELIHOOD IN THE NADOWLI DISTRICT OF THE UPPER WEST REGION, GHANA

Abstract

Microcredit is a programme designed to extend small loans to very poor people for self employment projects that generate income, allowing them to care for themselves and their families. It's relevance for development has attracted attention among development practitioners and policymakers in many parts of the World. It has got wide support from aid agencies, governments, Non-Governmental Organizations (NGOs), and the public at large. This thesis assesses the contribution of MASLOC micro-credit to the sustainable livelihoods of the people of Nadowli District in the Upper West Region. The study examined the administration, nature of coverage, the usage and benefits of MASLOC credit offered to beneficiaries and the effect on their livelihoods. The study employed a qualitative research approach. This was complimented with a quantitative review of secondary data.' Specific methods of data collection that were employed include Focus Group Discussion, in-depth, interviews and secondary data review. Data was primarily collected from MASLOC officials and beneficiaries. Results from the study showed that, MASLOC gave loans to individuals as a mechanism for reaching individual clients. Beneficiaries are expected to repay the loan over Six months and payments start exactly a month after disbursement. The study also revealed that, MASLOC lend money to the active poor consisting particularly women. Out of 29 groups, Five hundred and eighteen (518) were females whiles only Thirty-one (31) were males. The Findings also revealed that, out of the GHC I70,200.00 disbursed, GHC l53,000.00 went to women whiles only GHC 17,200.00 went to males. The beneficiaries used the money on three (3) categories of activities namely: Agro Based, Petty trade and Family welfare. The results also revealed 21 uses for which loans applied. Out of this, ll were in Agro Based category, 6 in the Petty trade category and 4 in the family welfare. Most of the women were engaged in pito brewing. Finally the results showed that,' use of MASLOC micro-credit improved the livelihood of beneficiaries. The businesses of beneficiaries improved and this improved their ability to pay school fees and health insurance. To maximize the utility of MASLOC micro credit for improving the Livelihoods of beneficiaries, support services of beneficiaries should go beyond enhancing capacities for loan recoveries and include identification of viable business opportunities for individuals.