EFFECT OF MICROFINANCE ON THE LIVELIHOOD OF RURAL WOMEN: THE CASE OF ZABZUGU DISTRICT

Abstract

The Zabzugu District, one of the deprived districts in the Northern Region, was selected to study the impact of Microfinance Institution (MFI) on the livelihoods of women. A descriptive approach was adopted for the study. Primary and secondary data were used. Two sets of questionnaires were administered in the study; one each for clients of the MFI and the officials of the MFI. Combinations of purposive and convenient sampling methods were used to select the MFI and the clients for the study. The main findings were that the presence of MFIs has contributed to a large extent, an increase in access to credit and savings mobilization. This contributed in women’s ability to improve their petty trading, hence increase their income, and subsequently leading to good health and education for their families, acquisition of assets and taking part in household decision making. Based on the findings it is recommended that financial education be intensified by financial institutions to educate women on financial services available and how to access them through meetings and seminars. Also the District Assembly should encourage MFIs to establish their branches in rural areas.