Browsing by Author "Wiredu, Emmanuel"

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    The role of microfinance in poverty alleviation: a case study of Offinso Municipality
    (2008-11-17) Wiredu, Emmanuel
    The Offinso municipality has witnessed two rnicrofinancial institutions in less than one year and more are expected to join. There is a notion that microfinance if properly institutionalized can eradicate poverty, but there are a few papers on how quantitatively microfinance has impacted on poverty and how to sustain it. The objective of the study therefore is the economic impact of microfinance on the poor and how it can be sustained. Primary data through questionnaires were employed. Articles and publications from the internet were the core literatures reviewed. Secondary data from both public and private institutions were used to supplement the study. Poverty was measured on four main variables; namely: income level, education, health and infrastructure. The differences in these variables between the incoming clients and the existing clients of the microfinancial institutions measure the impact of the microcredit. The study has revealed that the active poor are those who access the microcredit. These poor people after accessing the microcredit are not considered poor by both the World Bank and the Ghanaian standards. The microcredit has impacted on the lives of the clients positively. Many clients who have accessed the loan more than 8 cycles have acquired some properties and increased capital. The microfinancial institutions focus mainly on microcredit, one product of microfinance. In spite of this, the interest rates charged by the microfinancial institutions make the scheme financially stable. It is prudent for the microfinancial institutions to introduce more products and market these products. Farmers can be added to the target group as they constitute more than two-thirds of the work force in the municipality.