UNIVERSITY OF GHANA MICROFINANCE AND WOMEN …

i

UNIVERSITY OF GHANA

MICROFINANCE AND WOMEN EMPOWERMENT IN GHANA

BY

IRENE ESINAM AWUDJAH

(10701638)

THIS LONG ESSAY IS SUBMITTED TO THE UNIVERSITY OF GHANA, LEGON IN

PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE

MASTER OF SCIENCE DEGREE IN DEVELOPMENT FINANCE

AUGUST 2019

University of Ghana http://ugspace.ug.edu.gh

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DECLARATION

I, Irene Esinam Awudjah, do hereby, declare that this submission is my work towards an MSc in

Development Finance and that, to the best of my knowledge, it does not contain any earlier

published material or material that has been accepted for the award of any other degree of the

University, except where due recognition has been given in the text.

…………………………….. …………………………………

IRENE ESINAM AWUDJAH DATE

(10701638)


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CERTIFICATION

I, hereby, certify that this work has been appropriately supervised in accordance with procedures

and requirements laid down by the University regarding research supervision.

…………………………. ……………………….

DR. LORDINA AMOAH DATE

(SUPERVISOR)


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DEDICATION

I dedicate this study to my family especially my husband, Patrick Affadu, my mother, Janet

Anim and my lovely daughter, Cheryl Kukua Affadu Danful for their immense support and

sacrifices throughout my academic journey.


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ACKNOWLEDGEMENTS

I would like to, first of all, express my profound gratitude to God for His endless protection and

provisions throughout my life. My supervisor, Dr. Lordina Amoah for her patience, guidance,

critical reviews that have resulted in the success of this study. My husband, Patrick Affadu for his

support, selflessness and encouragement. My heartfelt thanks to my mother, Janet Anim and my

daughter, Cheryl Kukua Affadu Danful for their immense support and sacrifices. My father, Daniel

Awudjah, uncle Harrison Awudjah and Rev. Benjamin Odoi-Kumah for their fatherly advice,

financial support and encouragement throughout my journey in life. Kudjawu Fafali, Abaidoo

Anthony and Collins Kyei Asare for their guidance and assistance throughout this study. To all

my siblings for their prayers and support. It is my humble prayer that the good Lord we serve will

continue to richly bless you all for everything you have done towards the successful completion

of my Msc. Development Finance Programme.


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TABLE OF CONTENT

DECLARATION ............................................................................................................................ ii

CERTIFICATION ......................................................................................................................... iii

DEDICATION ............................................................................................................................... iv

ACKNOWLEDGEMENTS ............................................................................................................ v

TABLE OF CONTENT ................................................................................................................. vi

LIST OF TABLES ....................................................................................................................... viii

LIST OF FIGURES ....................................................................................................................... ix

ABSTRACT .................................................................................................................................... x

CHAPTER ONE ............................................................................................................................. 1

INTRODUCTION .......................................................................................................................... 1

1.1 Background of the Study ....................................................................................................... 1

1.2 Research Problem .................................................................................................................. 3

1.3 Research Objectives .............................................................................................................. 4

1.4 Research Questions ............................................................................................................... 4

1.5 Significance of the Research ................................................................................................. 4

1.6 Research Scope and Limitations ........................................................................................... 5

1.7 Organization of the Research ................................................................................................ 5

CHAPTER TWO ............................................................................................................................ 7

LITERATURE REVIEW ............................................................................................................... 7

2.0 Introduction ........................................................................................................................... 7

2.1 Overview of Concept ............................................................................................................ 7

2.1.1 Empowerment ................................................................................................................. 7

2.1.2 Microfinance ................................................................................................................. 13

2.2 Theoretical Literature .......................................................................................................... 14

2.2.2 Women Empowerment Theory .................................................................................... 15

2.2.3 Financial Sustainability Paradigm ................................................................................ 16

2.2.4 Poverty Alleviation Theory .......................................................................................... 17

2.3 Empirical Literature ............................................................................................................ 18


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2.4 Conceptual Framework ....................................................................................................... 20

CHAPTER THREE ...................................................................................................................... 21

RESEARCH METHODOLOGY.................................................................................................. 21

3.0 Introduction ......................................................................................................................... 21

3.1 Research Approach ............................................................................................................. 21

3.2 Research Design .................................................................................................................. 21

3.4. Data ................................................................................................................................. 22

3.4.1 Data Collection ................................................................................................................. 22

3.4.2 Source of Data .............................................................................................................. 22

3.5 Instrumentation.................................................................................................................... 23

3.5.1 Questionnaire for Respondents ..................................................................................... 23

3.7 Reliability ............................................................................................................................ 24

3.8 Data Presentation and Analysis ........................................................................................... 24

3.9 Ethical Consideration .......................................................................................................... 24

CHAPTER FOUR ......................................................................................................................... 25

DATA ANALYSIS, FINDINGS AND DISCUSSIONS.............................................................. 25

4.0 Introduction ......................................................................................................................... 25

4.1 Socio-Economic and Demographics ................................................................................... 26

4.1.1 Financial Services Accessed and Used (Inputs) ........................................................... 30

4.2 Measurement of Economic Empowerment ......................................................................... 35

4.3 Measurement of Women Social Empowerment.................................................................. 38

CHAPTER FIVE .......................................................................................................................... 43

SUMMARY, CONCLUSION AND RECOMMENDATIONS ................................................... 43

5.0 Introduction ......................................................................................................................... 43

5.1 Summary of Key Findings .................................................................................................. 43

5.2 Conclusion ........................................................................................................................... 44

5.3 Recommendations ............................................................................................................... 45

REFERENCES ............................................................................................................................. 46

APPENDIX 1 ................................................................................................................................ 51


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LIST OF TABLES

Table 2.1 Indicators for Economic and Social Empowerment of Women ................................... 11

Table 4.1: Age of Respondents ..................................................................................................... 27

Table 4.2. Educational Background of Respondents .................................................................... 28

Table 4.3 Occupation of Respondents .......................................................................................... 29

Table 4.4: Marital Status of Respondents ..................................................................................... 29

Table 4.5 Number of Dependents ................................................................................................. 30

Table 4.6: Financial Services Accessed from OISL ..................................................................... 30

Table 4.7 Type of Loan Accessed from OISL .............................................................................. 31

Table 4.8: Loan Cycle ................................................................................................................... 32

Table 4.9: Registered on any of OISL’s Digital Financial Services (DFS) .................................. 32

Table 4.10: Type of OISL’s Digital Financial Services (DFS) .................................................... 32

Table 4.11: Reasons for Not Using OISL’s DFS .......................................................................... 33

Table 4.12: How Often Transactions Are Performed Using OISL’s DFS ................................... 34

Table 4.13: Benefits from using OISL’s DFS .............................................................................. 34

Table 4.14: Access to Training and Development ........................................................................ 35

Table 4.15: How Microfinance Affects the Economic Empowerment of Women ....................... 37

Table 4.16: How Microfinance Affects the Social Empowerment of Women ............................. 40


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LIST OF FIGURES

Figure 2.1: Conceptual Framework .............................................................................................. 20

Figure 4.1: Response Rate Per Selected Regions in Ghana .......................................................... 26

Figure 4.2: OISL Sampled Branches ............................................................................................ 27

Figure 4.3: Measurement of Women Economic Empowerment .................................................. 36

Figure 4.4: Measurement of Women Social Empowerment ......................................................... 39


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ABSTRACT

The majority of women enterprises are in the informal sector and they earn low incomes. Research

has shown that microfinance is a development tool that can be used to empower women. However,

there have been several discussions on whether microfinance serves the poor; since about 70% of

the world poor are women. The study seeks to assess the role microfinance plays in the social and

economic empowerment of women in Ghana.

Probability and non-probability sampling techniques were used in selecting the sample population.

Questionnaires are administered to respondents who had access to financial services from

Opportunity International Savings and Loans. The study discovered that the majority of the women

were traders and farmers in their 3rd cycle or more. Women reported improvement in both social

and economic matters. Yet, they are still not up to date with recent technologies in accessing

financial services and are comfortable performing transactions physically at the branch.

Microfinance has demonstrated to be a critical instrument in empowering women from poor

households by providing of financial services rather than just credit. Other financial products such

as savings, investments and insurance aid in the empowerment of women; women can have some

capital to rely on when faced with financial challenges. MFI's should intensify training of their

clients on financial literacy, skills development, business advisory and good agricultural practices

to enhance their competences and increase their yield/income.


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CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The fifth goal of the Sustainable Development Goals (SDGs) is on gender equality. This goal seeks

to end all forms of discrimination against women and girls everywhere to accelerate global

sustainable development (United Nations Development Programme [UNDP], 2017). According to

the World Bank's report on Women Empowerment (2014), sustainable development and economic

growth are tied to women empowerment. International Labour Organization [ILO] (2015), has also

reported that women across the whole world contribute to the growth of economies and sustainable

development within communities and family. Additionally, studies on women empowerment have

also revealed that women empowerment has a multiplier effect and contributes significantly

towards economic growth and development (Bhoganadam, Malini & Rao, 2014; Sohail, 2014;

Duflo, 2012; Doepke & Tertilt, 2011). To this end, governments, NGOs and international

organizations have adopted several strategies to promote empowerment of women, but the

majority of women remain poor and vulnerable compared to men. The problem of discrimination

against women and girls continues to exist because of the high rate of women unemployment, lack

of access to credit and continuous economic dependence on males (Gangadhar & Malyadri, 2015).

Over the past five decades, one of the most important tools which have served as a means to

provide credit facilities and thereby empowering women is microfinance (Addai, 2017; Gangadhar

& Malyadri, 2015). For example, in rural Bangladesh, Rahman, Khanam and Nghiem (2017)

discovered that microfinance has a positive impact on indicators of women empowerment such as

decisions on buying household items; decisions on child education; decisions on medical


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treatment; and decisions on buying personal items. They concluded that income levels of women

improved significantly after access to microfinance. A similar study conducted by Herah,

Gunerante and Sanderante (2015) in Sri Lanka revealed that the age of the head of a household,

income before accessing microfinance and availability of market for products have a significant

impact on women empowerment. Gangadhar and Malyadri (2015) also found that microfinance is

an influential tool to enhance the empowerment of women in Andrah Pradesh. In addition, a

research undertaken in the eastern portion of India by Rahul, Saurabh, Priyanjali and Samar (2013)

about the impact of microfinance on women empowerment showed that microfinance has a

positive impact on child-related decision making but has no effect on women economic decision

such as expenditure, enterprise and credit-related issues. Therefore, there is inconclusive proof to

determine the impact of microfinance on the empowerment of women. In Africa, Mchilo (2017)

reported that women empowerment is one of the main problems in Tanzania because women

compared to male counterparts are poorer and subject to customary and traditions laws. Mchilo

argued that microfinance is a tool that could help empower women in Tanzania. It was discovered

in the research that, in terms of leadership potentials and earned income, there was a powerful

connection concerning microfinance and the empowerment of women. Kamau (2012) used the

same indicators (household relations’, control of household decisions, participation in accessing

loan facility) by Mchilo to measure the impact of microfinance on women empowerment in Kenya.

The findings revealed a high correlation between microfinance and the empowerment of women.

The importance of microfinance on women empowerment has been examined in the Ghanaian

context. According to Dzisi and Obeng (2013), microfinance has improved the socio-economic

status of women in Ghana. Owusu-Danso (2015) also found that women who have access to

microfinance had a higher share of household assess than women without access to microfinance


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and the access to microfinance helps to reduce the gender asset gap between men and women.

From the literature, it could be deduced that microfinance has some form of impact on women

empowerment.

1.2 Research Problem

Women make up about 70% of the more than 1.4 billion individuals living in complete poverty

(Rathiranee, 2015) and receive only 77 cents per dollar that masculine counterparts earn for the

same job. Empowered women contribute to the social and economic wellbeing of the families and

the entire economy.

Addai (2016) opined that women empowerment is a global challenge because of unfair cultural

social and political structure. Gangadhar and Malyadri (2015), argued that although several

strategies and institutions have advocated for women empowerment, a majority remain vulnerable

and poor due to their economic dependence on their male counterparts and lack of access to credit.

In Ghana, it has been proven that women who have access to microfinance are empowered than

those without access to microfinance (Addai, 2016; Owuso-Danso, 2014).

However, other studies conducted in Ghana have revealed that microfinance does not empower

women because the credit facilities taken by the women are controlled by men and the

microfinance institutions also charge very high interest rates. As a result of this, most of these

women have high default rates and end up selling their personal belongings to offset the debt (Laha

& Kuri, 2012). There is also inadequate literature in Ghana to assess the impact of microfinance

on the empowerment of women and hence the need for this study.


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1.3 Research Objectives

The main objective of the study is to assess the role microfinance plays in women empowerment

in Ghana. These following objectives are specific to the research:

1. To examine the indicators of women empowerment.

2. To assess the role microfinance plays in the economic empowerment of women

3. To assess the role microfinance plays in the social empowerment of women.

1.4 Research Questions

Generally, the research seeks to find out how microfinance affects women empowerment in Ghana.

To answer this broad question, the following specific questions will be used.

1. What are the indicators for women empowerment?

2. What is the role of microfinance in the economic empowerment of women?

3. What is the role of microfinance in the social empowerment of women?

1.5 Significance of the Research

The key stakeholders who will benefit from this study include the government (especially ministry

for children and gender affairs), women (especially the vulnerable ones) will get to know the

indicators that empower them economically and socially as well as appreciate that microfinance is

one of the main tools which can empower them, microfinance institutions would also benefit by

knowing the key indicators for women empowerment; to be able to restructure their loans to suit

the needs of women thereby increasing their customer base and also impacting the lives of women

positively, non-governmental institutions and other international bodies will be informed through

the findings of this research to aid in policy formulation.


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The findings will assist the government to identify the key indicators for women empowerment

and how microfinance could be used to empower women.

1.6 Research Scope and Limitations

Several factors empower women but this study focuses on the role of microfinance in women

empowerment in Ghana. For academic purposes, the study used only Opportunity International

Savings and Loans (OISL), a highly reputable financial institution licensed by the Bank of Ghana

as a specialized deposit-taking institution that provides microfinance services to women in Ghana.

OISL has 43 branches in 9 out of the 16 regions of Ghana but this study focused on only 9 branches

within 5 regions (Greater Accra, Central, Eastern, Northern and Ashanti regions) of Ghana.

The main limitation of the study will be the willingness of respondents to avail themselves and

provide adequate and accurate data for this study. Other limitations will be time, as the researcher

has to combine her regular professional work with this research. Funding is also a constraint

because the researcher had to provide funds for the entire work.

1.7 Organization of the Research

The study is organized into five chapters.

The first chapter focuses on the background of the study, the problem statement, research questions

and objectives, the significance of the study, the limitations and how the entire work will be

organized.

The second chapter focuses on reviewing the literature on this study. For example, the literature

on microfinance and women empowerment is reviewed. The theoretical and conceptual framework

is provided in this chapter as well as an empirical review.


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Chapter three provides the methodology used in achieving the objective of the study. This includes

the research design, population, sampling technique and sample size, instrumentation, ethical

consideration and how to analyse the data.

The data gathered is presented, analyzed and discussed thoroughly in chapter four. The last chapter

contains a summary of the research findings, conclusions and recommendations for the study.


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CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter comprises the review of literature relating to the research study. The key areas include

defining main concepts used in the study, an empirical review and the theories underpinning the

research work.

2.1 Overview of Concept

The key concept used in this study; empowerment, women empowerment, economic

empowerment, social empowerment and microfinance is clearly explained in this section.

2.1.1 Empowerment

Empowerment is generally a process that helps people to take control of certain factors that affect

their lives. It is related to the concept of community-driven development and social capital

development and it is about power, choices and change (Kamau, 2012). The research finding

further explained that empowerment is a process by which the powerless obtain the power to make

decisions that impact their lives and others.

From the definitions above, empowerment in this study is used to mean the process through which

a person or a group of people are equipped with the requisite skills and resources to be

economically and socially sound to make decisions that affect their lives thereby improving their

standard of living. The key objective is that there should be a positive change in a person's life.


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2.1.1.2 Women Empowerment

Women empowerment is a term that is commonly used but its interpretation is very tricky.

According to the United Nations Development Fund for Women (UNDFW), in defining the

indicators of women empowerment, the following should be included:

Challenging the ideology of male domination and women subordination.

Enabling women to gain access to and control over resources (human, material and

intellectual).

Purusottam and Bidisha (2012) asserted that women empowerment has been understood as the

process through which the powerless (women) gain control over the circumstance of their lives.

Additionally, Sohail (2014), posited women empowerment includes self-confidence, awareness of

their right and ability to bring change in their lives and community. Kumau (2012) argued that

women empowerment depends on basic factors such as social, human and material resources that

will motivate them to make choices in their own lives. Moreover, the concept has been explained

by Shakya (2016) to mean a process for women to be independent to make their personal choices,

to be self-reliance and to control the available resource at their disposal.

The definitions imply that women empowerment is a process. This means that it takes time for a

woman to be empowered. As indicated above, the process should transform the woman; give her

some form of power (economically and socially) to make decisions that will affect her personal

life. This goal (women empowerment) can be achieved if basic factors such as their social, human,

material and economic needs are improved (Kumau, 2012). Critical analysis of the definition of

women empowerment shows that women empowerment can be categorized into two; economic

and social empowerment.


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2.1.1.3 Women Economic Empowerment

Economic empowerment generally implies helping individuals to believe beyond their immediate

survival and exercise control over their available resources and choices. This process helps to

strengthen the vulnerable groups in society (Madhavi & Ranjani, 2016). Discussions on economic

empowerment are usually centered on four key drivers: skills and training, microfinance,

promotion of assets to the poor and transformation of social protection (Eyben, Kabeer & Cornwall

[2008] cited in Madhavi & Ranjani [2016]).

Women economic empowerment includes women participation in economic matters, women

decision making at different levels, women access and control of resources, access to education

and health care, options to make choices, women decision making and choice of use of resources

(Imrab, Iftikhar & Ghulam, 2018).

Taylor and Pereznieto (2014) gave further explanation of women's economic empowerment as the

process of gaining equitable access and control of financial assets. Economic empowerment of

women seeks to guarantee that women can use the available resources to control several aspects

of their lives. In addition, women's economic empowerment has been described by Golla,

Malhotra, Nanda and Mehra (2011) as the capacity to progress and succeed financially and the

power to make and act on economic decisions. However, Hunt and Samman (2016) argued that if

the following constraints are tackled strategically, women will be economically empowered.

Skills development, education, and training

Access to property and financial service

Social protection

Unpaid care and work burdens


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Access to quality and decently paid work

Collective action and leadership

2.1.1.4 Women Social Empowerment

Social empowerment, according to Madhavi and Ranjani (2016), is the process of creating a sense

of independence and self-confidence, acting separately and collectively to alter relationships and

institutions, as well as debating problems that exclude and maintain bad individuals in poverty.

The United Nations Development Programme (2012) describes women social empowerment as

women organized, mobilized and capacitated for collective action through women-led institutions.

UNDP further indicates that poor women organised in strong collectives at group and cluster levels

and their capacities developed for running these sustainably are socially empowered.

Women social empowerment is strongly influenced by leadership relations, a sense of identity,

social belonging, self-confidence, self-esteem, the ability to aspire for a better future, good health

and education (Madhavi & Ranjani, 2016).

2.1.1.5 Indicators of women empowerment

No single indicator can measure and or explain women empowerment. It comprises of a

multidimensional set of indicators (composite indicators). From the literature review, the

indicators below were adopted to measure women social and economic empowerment.


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Table 2.1 Indicators for Economic and Social Empowerment of Women

Women Empowerment Indicators Authors

Economic Empowerment

1. Access and control of

resources

2. Financial contribution

to children education

3. Financial contribution

to children health

4. Decision making of the

use of resources

5. Access to training and

development

6. Access to financial

services

7. Decision on the selling

of assets

8. Choice of spending

9. Contribution to

household monthly

income

10. Improved income

levels

Imrab, Ifikhar & Ghulam

(2018); Achyut (2018); Hunt

& Samman (2016); Fwamba et

al. (2015); Taylor & Preznieto

(2014); Appiah (2011)


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Social Empowerment

1. Self –esteem

2. Self-confidence

3. Social belongings

4. Sense of identity

5. Decision making on

social matters

6. Mobility

7. Legal awareness

Madhavi & Ranjani (2016);

Shakya (2016); Malyadri

(2015)

Source: Authors Own Construct (2018); extracted from the literature reviewed.

2.1.1.6 Reasons for Women Empowerment

Women empowerment gained popularity after the “UN declaration of the Decade of Women” in

1975 (UNESCO, 1995). According to the United Nations Population Fund (UNFPA) women

economic, social, and health empowerment as well as their autonomy is very important for the

achievement of sustainable development (UNFPA, 1994). They argued that the full participation

of women and men is important for productive and reproductive life which includes the

maintenance of their household and shared responsibility for the upbringing of children.

Per the UN Women publications in 2013, when women are empowered economically, economies

grow. They reported that evidence from several countries shows that when women income

improves it has a direct benefit on children. Moreover, if the opportunities available to men are

extended to women in terms of productive assets, agricultural output will increase by 4% in 34

developing countries. This initiative could decrease the number of undernourished individuals in


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these countries by 17%, to around 150 million fewer hungry people (UN Women publications,

2013).

It is very important to empower women because empowered women who make significant

contribution to the health, education, and nutrition of their children as well as the decision making

in the family and community.

Women form about 70% of the over 1.4 billion people who live in absolute poverty (Rathiranee,

2015) and they earn only 77 cents for every dollar the male counterparts earn for the same work.

Empowered women contribute to the health needs and the socio-economic wellbeing of the

families and the entire economy (Gangadhar & Malyadri, 2015).

2.1.2 Microfinance

Microfinance is development tool that has emerged to assist low-income earners in society.

Achyut (2018) describes microfinance as the means of providing financial services that include

loans, savings, money transfers, insurance, and other banking services to clients who are unable to

have access to the banking system because they are poor. The loan facility is usually advanced to

low-income earners both within the urban and rural areas. Categories of such people include street

vendors, traders, hairdressers, and artisans. These loans are given by microfinance institutions

(Achyut, 2018).

Mchilo (2017) corroborated that microfinance is a term that is used to provide financial services

to people who are not able to access the traditional banking sector. He added that they usually

advance micro-credit with interest of at least 25% to small businesses, individuals and groups.

Similarly, Shakya (2016) opined that microfinance is about the provision of small loans to the

start-ups and or the poor to improve their standard of living.


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The Basel Committee on Banking and Supervision (2010) refer to microfinance as institutions that

offer financial services in a limited amount to small informal business and low-income earners.

Sangita (2007) also defined microfinance as the provision of small loans and other financial

services poor people.

2.2 Theoretical Literature

This section of the chapter provides the theory underpinning the research work. Women

empowerment theories are influenced by feminist and developmental theories (Pieterse, 2013).

2.2.1 Feminist Theory

The concept of feminist theory first emerged in early 1974 in Mary Wollstonecraft's publication,

A Vindication of the Right of Women (Navajo, 2005). It is varied and diverse. However, the

different concept is all skewed towards gender inequality, the root of women oppression, women

empowerment and gender subordination (Katherine & Michelle, 2008). For example, liberal

feminism refers to the women's unequal access to socio-economic, political, and legal institutions.

Radical feminism is viewed as the most fundamental form of women oppression. They argue that

sexuality is the root of women oppression. According to this school of thought, women's bodies

are controlled through objectification, violence and other social institutions such as religion and

medicine. Marxist and Social feminists are rooted in capitalism. They argue that women are

oppressed through unpaid wages and low wages (Katherine & Michelle, 2008).

Feminist and empowerment theories are very significant in explaining the concept of women

empowerment. Turner and Maschi (2014) argue that incorporating feminist and empowerment will

help to give a better understanding of the approaches and indicators that should be used to assess

women empowerment. Grosz (2010) further explains that empowerment and feminist theory has


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much in common in terms of subordination and dominations. Feminism is concerned with the

importance of political, social and economic structures that shape human society. According to the

United Nations Human Rights (2014), historically, women have been excluded from major

decision making and political life.

According to the feminist theory, an inferior status that is delegated to women is believed to have

emanated from the personal status of women, societal inequality, social and economic power

assign to women. As a result, the theory postulates that there should be equality in accessing all

forms of power. The personal status of women is usually influenced by social, political and

economic power advanced to them. The feminist, likewise the concept of empowerment studies,

enable women to recognise how they are oppressed, dominated and often motivates them to

participate in activities that result in an extensive societal change. Feminist scholars, social workers

and teachers reassure women to gain power in our society by expressing their emotions and

develop self-confidence and self-efficacy. There have been several debates within the social sphere

as to considering empowerment as a theory or a process (Carr, 2003; Carroll, 2004).

2.2.2 Women Empowerment Theory

Women empowerment theory is meant for the understanding of women socio-economic and

political levels in the economy (Turner & Maschi, 2015). This theory emerged from the global

feminist movement to question the oppression of women and the dominant role of men in society

(Shah, 2011).

Mayoux (2005) argued that from the early seventies women’s movements in several countries

became increasingly curious about the extent to which to poverty-focused credit cooperatives and

programs could be made accessible to women.


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Microfinance is seen as the basis in the view of a comprehensive approach to women economic

and social-political empowerment which centres on gender awareness and feminism (Mohakhali,

2009).

Participatory principles incorporated in policies will support women to come up with strategies

for positive change and develop a progressive understanding of industries. Several organizations

also include gender-specific policies for social, political and economic empowerment;

mainstreaming gender into its programs and bringing together men and women to challenge and

change gender discrimination.

Other women across the world formed credit and savings groups as a medium of increasing the

income of women and to deal with broader gender problems. Poor women and women who have

the capability of acting as role models for change become the main target group.

2.2.3 Financial Sustainability Paradigm

Generally, sustainability describes the ability of managers or supervisors to ensure the continuity

of an organization for the long term. Sontag-Padilla, Staplefoote and Kristy (2012) argued that the

definition of financial sustainability may differ between non-profits organizations and profit-

oriented organizations. Bowman (2011) posited that financial suitability refers to the ability to

maintain financial capacity overtime.

Since the mid-1990s, most donor organizations and Best Practice Guidelines have been promoting

the financial sustainability paradigm, also recognized as the financial systems approach or

sustainability approach or sustainability approach that highlighted microfinance models in

USAID, World Bank, UNDP and CGAP journals.


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Cheston and Kuhn (2002) Microenterprise and microfinance were seen as the best avenue of self-

help poverty reduction. The success of microfinance, for instance, Grameen bank in Bangladesh

resulted in the emergence of a new paradigm for minimalist microfinance. Fundamentally,

microfinance institutions are required to be profitable and fully self-supporting to be able to reach

out to the millions of poor people who are in need of microfinance services. They should not rely

solely on funds from development agencies but be capable of raising funds from the international

financial markets. The bankable poor such as small entrepreneurs and farmers remain the main

target group, despite claims to reach the poorest.

Within the financial sustainability paradigm, women have been the target as argued by gender

lobbies on the assumption that women repayment rates are high and therefore the need to enhance

women economic activity which was in the past an underutilized resource. They have chalked

some success in ensuring that concerns of female targeting are incorporated into conditions of

microfinance services and program assessment to boost economic growth.

2.2.4 Poverty Alleviation Theory

There are so many poverty alleviation theories. These include the Marxian theory of poverty; the

cultural theory of poverty; the Neo-conservative theory of poverty; the social democratic theory

of poverty; and the Social Darwinist theory of poverty (Alfandega, 2017). The Marxian theory of

poverty argues that poverty results from the situation in which a person finds him or herself in. Per

this theory the recommendation for poverty alleviation is through training, education, increased

productivity, welfare programme and those replaced by technology should be able to adapt to

environmental changes. The cultural theory of poverty is a build-up of the Marxian theory. This

theory points out that as retrenchments continue, driven by the capitalists’ quest for improving

means of production and profitability, paupers emerge. This defective culture is passed on to


18

children born and raised in these homes or geographical areas as a result of socialization of poor

families and communities and consequently limit or obstruct such children's successful

participation in mainstream institutions. Since the culture of poverty is based solely on material

deprivation and not specific to any religious or ethnic marginalization, a person can be poor

without living in a culture of poverty. Reforms aimed at alleviating poverty should not focus on

immediate gains because culture takes a long time to change due of its relative autonomy. Over

the years, the culture of poverty can be amended without necessarily focusing on the objective of

alleviating poverty as is seen in societies taken over by using progressive or nationalistic moves

wherein some of the key tendencies of the culture of poverty are altered ideologically.

There is no one organizational model of micro-finance that these theories correspond

systematically to. Microfinance providers with similar structures like, village bank, Grameen

model or cooperative model may have very varied gender policies, emphases and strategies for

alleviating poverty (Mohakhali, 2009).

Although women empowerment may be the specified aim in the rhetoric of endorsed gender policy

and program campaign, it may be marginalized in practice by issues of financial sustainability

and/or poverty alleviation Mayoux (2005).

2.3 Empirical Literature

Several studies have been conducted to assess the role of microfinance in women empowerment.

The majority of these studies have concluded that women who get access to microfinance have

improved standard of living thereby empowering them as compared with their colleagues without

financial support. For example, Ferka (2011) observed that the presence of microfinance in rural

areas of Ghana has provided women access to microcredit. This initiative helped to improve their


19

income levels, health, education for their children, acquisition of assets and involvement in

household decision making. The study recommended there should be an intensive financial

education for women and MFIs should be empowered to open branches in rural areas. Appiah

(2011) conducted a similar study to assess the of microfinance on the empowerment of rural

women in the Asuogyaman district in Ghana. She found that although MFIs have a positive impact

on the empowerment of women, the full benefit is not realized because of the inflexible payment

system, high interest rate and group formation.

Moreover, Kinyanjui (2016) conducted a study in the South constituency of Gatundu, Nairobi to

examine the impact of microfinance on women empowerment. The study concluded that

microfinance empowers women to be more independent, improves their wellbeing and confidence

by participating in household and community decisions.

Shakya (2016) reported that poverty and women empowerment is a major problem in Nepal. As a

result, he conducted a study in Nepal to assess the impact of microfinance on women

empowerment. The main indicators used were: decision making role and confidence level of

women. The findings from the study revealed that microfinance has a positive impact on women

empowerment. Shakya concluded that women access to microfinance in Nepal does not only

improve their economic status but also social status.

According to Achyut (2018) microfinance contribute to the economic empowerment of women

thereby improving their decision making. Using saving mobilization, economic participation,

income status, insurance service, capacity building and training development as indicators for

women empowerment, the study concluded that microfinance has a positive impact on women

empowerment.


20

Fwamba, Matete, Nasimiyu and Sungwacha (2015) conducted a study to assess the impact of

microfinance institutions on the economic empowerment of women entrepreneurs in developing

countries. The results from the study revealed that microfinance act as a tool for women economic

empowerment. The indicators used to measure the economic empowerment of women included;

large savings, acquisition and control of resources and access to borrowing.

2.4 Conceptual Framework

The literature reviewed clearly indicates that microfinance significantly impact on the

empowerment women. Several indicators have been used to measure women empowerment (see

table 2.1). The researcher conceptualized that microfinance is the wheel for women empowerment

and women empowerment is dependent on multidimensional indicators. For this study the

indicators are categorized into economic and social indicators.

Figure 2.1: Conceptual Framework

Women Empowerment

Economic Indicators

Access and control of resources

Financial contribution towards children education

Financial contribution towards children health

Decision making of the use of resources

Access to training and development

Access to financial services

Decision on selling of assets

Choice of spending

Contribution to household monthly income

Improved income levels

Social Indicators

Self –esteem

Self confidence

Social belongings

Sense of identity

Decision making on social matters

Mobility

Legal awareness

Microfinance

institution

Source: Author’s Own Model (2018)


21

CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction

Primarily, the study seeks to assess the role of microfinance on women empowerment in Ghana.

The methodology to be employed in achieving this broad objective and the other specific

objectives are clearly outlined and explained in this chapter. It covers the research approach,

design, population, sample of the study, sampling technique, the instruments used, data needed,

analysis of the data and ethical consideration of the study.

3.1 Research Approach

This research will use the inductive approach. The researcher will rely on existing theories and the

use of the research questions to collect data for the study.

3.2 Research Design

The research design adopts the mixed research design. This form of research design will combine

both numeric (quantitative) and non-numeric (qualitative) features for proper analysis.

3.3 Research Population

The population for this study will include women who have accessed any financial service from

OISL.

3.3.1 Sampling Technique and Sample size

Probability and non-probability sampling techniques are used in this study. Probability sampling

is used because each member within the population has an equal chance of being selected and non-


22

probability sampling based on the researcher’s subjective judgement. For probability sampling,

the simple random technique will be used to select respondents who have accessed financial

services from OISL. For the non-probability technique, purposive sampling technique will be used

to select OISL as the case study.

The sample size for the study is 210 using questionnaires. Out of the 43 branches of OISL, the

researcher selects 9 branches randomly; 21 women respondents from each branch are interviewed

across 5 regions in Ghana. With 42 women respondents from Tamale branch because it is the only

branch of OISL in the Northern Region. The researcher additionally collects data through

interviews, reports and observations from head office staff to understand the role OISL plays in

empowering its women clients.

3.4. Data

The data needed for the study include demographics, access to microfinance, access and control

of resources, financial contribution towards children's health and education, self-confidence,

choice of spending, improved income levels and decision on economic and social matters.

3.4.1 Data Collection

The researcher collects data systematically from clients and staff of OISL to achieve the objective

of the study.

3.4.2 Source of Data

Two main sources of data will be used by the researcher; primary and secondary data to enrich the

quality of research work. The researcher uses questionnaires to collect data and relies on written

materials and documents such as reports, books, journals, magazines, speeches and administrative

records for the secondary data.


23

3.5 Instrumentation

The data collection instrument that will be used to collect primary data will be questionnaires. The

questionnaires will be well structured into open and close-ended questions. The questionnaire will

be structured into three sections. The first section will focus on the demographic characteristics of

the respondents. The second part will look at the measurement of women social empowerment.

The final section will also focus on the measurement of women economic empowerment.

3.5.1 Questionnaire for Respondents

The main respondent for the study will be women who have accessed any financial service from

OISL. The questionnaire for the respondents will consist of Thirty-Five (35) test items and it will

be made up of three sections. The first section concentrates on the demographic characteristics and

inputs of the respondents which will consist of Sixteen (16) questions. This include their age,

education, occupation, marital status, number of dependents and financial services accessed/used.

The second section will focus measurement of the social empowerment of women. The third

section will also measure the economic empowerment of women. All questions under the second

and third section will be answered by using five (5) point Likert scale where 1 was Strongly Agree

(SA), 2 was Agree (A), 3 was Neutral (N), 4 was Disagree (D) and 5 was Strongly Disagree (SD).

3.6 Validity

This will be achieved by reviewing literature and setting test items that are linked to the objectives.

My supervisor will also take a critical look at the test items and examine its validity.


24

3.7 Reliability

One important test for measurement is reliability. Sample of the questionnaires will be

administered and re-administered again under the same similar conditions to ensure that results are

consistent and can be relied on.

3.8 Data Presentation and Analysis

The data gathered from the field will be carefully screened to detect any possible errors or

omissions. The data will be analyzed using the mixed research design. The mixed research design

helps compare both quantitative outcomes and qualitative findings, respondent’s experiences can

be better captured and its much flexible in terms of obtaining information.

3.9 Ethical Consideration

The researcher will carefully clarify the objectives and purpose of the research to the sampled

respondents in addressing this ethical challenge as well as provide the option of opting out of the

study. The respondent's details such as names will not be taken to keep the respondent’s identity

confidential. In addition to this, respondents will be informed that the study will be purely

academic and none of their responses will be known by third parties. However, respondents whose

quotes will be used in the study will be consulted for approval before using them.


25

CHAPTER FOUR

DATA ANALYSIS, FINDINGS AND DISCUSSIONS

4.0 Introduction

The research study seeks to find out the role of microfinance in women empowerment in Ghana.

This chapter entails the analysis, discussions and findings that relate to the study.

Out of a total of 210 questionnaires that were administered, 201 usable questionnaires were

recovered and used in this analysis, showing a response rate of 95.71%. The high response rate

can be largely attributed to the good reception created by OISL’s Branch Managers, Relationship

Officers and Clients for data collectors. The response rate achieved for this fieldwork can be

considered adequate for answering the questions raised under this research. Observations,

interviews, reports were collected from some staff (Transformation, Finance, Sales and Operations

departments) of OISL. The sample size is not a fair representation of the entire population because

it is an academic work and the researcher was constraint with time and budget.

The researcher’s field records and observations gathered throughout the time of administering the

questionnaires will be used to enhance the study. The background information that was significant

to the objectives of the study was captured. The findings were presented using tables and graphs

for analysis and interpretation of the responses.


26

4.1 Socio-Economic and Demographics

Both qualitative and quantitative data were collected across 5 regions in Ghana.

Figure 4.1: Response Rate Per Selected Regions in Ghana

Source: Field Data, 2019.

Figure 4.1 shows, Greater Accra Region recorded the highest response 48 (23.9%), Ashanti Region

had 41(20.4%) respondents, Central Region had 40 (19.9%) respondents, Eastern Region had 38

(18.9%) respondents and the Northern Region had 34 (16.9%). The data collection took a

systematic approach to gathering the necessary information from different regions to achieve the

objective of the study.

Comparing the actual response rate to an estimated number of 42 responses per region, it could be

deduced that actual responses per region were above 80% of the expected.

0

10

20

30

40

50

60

Ashanti Region Central Region Eastern Region Greater AccraRegion

Northern Region


27

Figure 4.2: OISL Sampled Branches


Figure 4.2 depicts, data was collected from nine (9) branches of OISL. Every region was

represented by two (2) branches except the Northern Region where OISL has only one (1) branch.

Out of the 201 women respondents, Tamale recorded 34 respondents, Ashaiman recorded 29,

Kasoa and Bekwai had 21 respondents each, Kejetia and Akim Oda has 20 respondents each,

Circle and Mankessim recorded 19 respondents each and Somanya recorded 18 respondents,

Table 4.1: Age of Respondents

Age Frequency Percent

Below 25 12 6.0

25-30 25 12.4

31-35 30 14.9

36-40 52 25.9

41 and above 82 40.8

Total 201 100


Table 4.1 shows majority of the women respondents 82 (40.8%) were aged 41 and above, women

between the ages of 36-40 were 52 (25.9%), respondents aged between 31-35 were 30 (14.9%),

0

5

10

15

20

25

30

35

40


28

respondents aged between 25-30 were 25 (12.4%) and the least number of respondents recorded

12 (6.0%) for women at age 25 and below. The age of the respondents was important to the

researcher to know how the age of women affected their financial decisions and empowerment.

Table 4.2. Educational Background of Respondents

Education Frequency Percent

No Formal Education 59 29.4

Primary 26 12.9

JHS 71 35.3

SHS 25 12.4

Vocational/Technical 7 3.5

Diploma/HND 7 3.5

Degree 6 3.0

Masters 0 0

Total 201 100.0


Table 4.2 shows that the majority of the respondents 71(35.3%) were educated up to JHS level,

while the minority 6(3.0%) were educated to First degree level. There was no respondent for the

master’s level. 59 (29.4%) respondents had no formal education, the primary level was represented

with 26 (12.9%) out of the total respondents. 25 (12.4%) respondents were educated to the SHS

level. Vocational/Technical and Diploma/HND were also each represented with 7 (3.5%). The

majority of women who had not attained any formal education were aged, 41 and above. Existing

literature shows that education forms part of the main factors that directly constraint women

economic empowerment and has to be critically looked at.


29

Table 4.3 Occupation of Respondents

Occupation Frequency Percent

Trader 127 63.2

Farmer 41 20.4

Teacher 10 5.0

Other 23 11.4

Total 201 100


Table 4.3 revealed that the majority of the respondents 127 (63.2%) were traders. Farmers

comprised of 41(20.4%), Other occupation and teachers were 23 (11.4%) and 10 (5.0%)

respectively. Existing literature has proven that microfinance assists women to establish micro-

enterprises, hence increasing income under their control.

Table 4.4: Marital Status of Respondents

Response Frequency Percent

Single 36 17.9

Married 138 68.7

Separated/Divorced 12 6.0

Widow 15 7.5

Total 201 100


Table 4.4 shows that the majority of the women respondents 138 (68.7%) were married while

36(17.9%) were single. Women who were separated/divorced and widows were represented by

12 (6.0%) and 15 (7.5%) respectively. This distribution was taken as a fair representation of the

distribution of women in Ghana for this research study. The marital status of the respondents was

also of importance to the researcher to know how marriage affected financial decision making

among empowered women.


30

Table 4.5 Number of Dependents

Response Frequency Percentage

1-2 58 28.9

3-4 72 35.8

5-6 43 21.4

Above 6 28 13.9

Total 201 100


Table 4.5 shows that majority of the women respondents 72 (35.8%) had 3-4 dependents with the

minority 28 (13.9%) having above 6 dependents. 1-2 and 5-6 dependents were 58 (28.9%) and

43 (21.4%) respectively. The number of dependents that respondents have was of importance to

the researcher to determine how it affected both their social and economic decisions.

4.1.1 Financial Services Accessed and Used (Inputs)

Table 4.6: Financial Services Accessed from OISL

Responses Frequency Percentage

Savings 25 12.4

Insurance 0 0.0

Investment 2 1.0

Loan 94 46.8

Others 4 2.0

Insurance, loan, Savings 1 0.5

Loan, Investment 5 2.5

Loan, Savings 36 17.9

Others, Loan 2 1.0

Others, Savings 2 1.0

Savings, Loan 15 7.5

Savings, Loan, Investment 7 3.5

Blank 8 4.0

Total 201 100


From Table 4.6 above, most of the women respondents 94 (46.8%) accessed loans, 25 (12.4%)

had savings, 2 (1.0%) had placed investments. Only 1 (0.5%) woman had insurance, loan and


31

savings. 71 (35.3%) respondents had access to more than one product whilst 8 (4.0%)

respondents couldn’t provide any response with regards to any financial service accessed from

OISL. Others also included susu products. Fewer women had investments, insurance and more

women took up loans. This data was important because microfinance includes the provision of

financial services such as savings, loans, insurance, money transfers and other banking services

to clients who are unable to have access to the traditional banking system because they are poor.

Table 4.7 Type of Loan Accessed from OISL


SME 33 18.1

Personal 49 26.9

Group 68 37.4

None 20 11.0

Group, Personal 1 0.5

Group, SME 1 0.5

SME, Personal 8 4.4

Blank 2 1.1

Total 182 100


Table 4.7 indicates the majority of women respondents 68 (37.4) accessed group loans, personal

loan was represented by 49 (26.9%) women respondents, 33 (18.1%) women respondents were

SME loan clients and 20 (11.0%) out of the women respondents had not accessed any type of

loan. 10 (5.4%) women respondents had access to more than one type of loan from OISL. 2

(1.1%) respondents couldn't provide any information with regards to the type of loan accessed

from OISL.


32

Table 4.8: Loan Cycle

Responses Frequency Percentage

1st Cycle 24 25.5

2nd Cycle 24 25.5

3rd Cycle 21 22.3

More than 3 Cycles 25 26.6

Total 94 100


Table 4.8 depicts that the majority of the women respondents 25 (26.6%) who had accessed

loans were in their 3rd or more cycles, 1st and 2nd cycle loans were both represented by 24

(25.5%) out of the women respondents. The least number of women respondents were in their 3rd

cycle represented by 21 (22.3%).

Table 4.9: Registered on any of OISL’s Digital Financial Services (DFS)


Yes 121 60.2

No 80 39.8

Total 201 100


Table 9 shows that most of the respondents 121 (60.2%) had registered on OISL’s DFS and 80

(39.8%) had not registered on any OISL’s DFS.

Table 4.10: Type of OISL’s Digital Financial Services (DFS)

Response Frequency %

Opportunity Mobile 66 54.5

Opportunity Cash 7 5.8

E-zwich 9 7.4

E-zwich, OPM 10 8.3

Opportunity cash, E-zwich, OPM 1 0.8

Opportunity cash, OPM 28 23.2

Total 121 100



33

From Table 4.10, the majority 66 (54.5%) of women respondents had registered on opportunity

mobile. The least 7 (5.8%) had registered on opportunity cash whilst 9 (7.4%) were registered on

E-zwich. 39 (32.3%) performed transactions with more than one DFS platform.

Table 4.11: Reasons for Not Using OISL’s DFS


Complexity 10 12.5

Charges 2 2.5

Insecurity 3 3.8

Unaware 48 60.0

Others 17 21.2

Total 85 100


Table 4.11 shows why women respondents are not registered on any OISL’s DFS. The highest

number 48 (60.0%) were women respondents who are unaware of OISL's DFS. Others were

represented by 17 (21.2%) women. Others included women who were not interested in DFS, for

personal reasons, they did not need it, not necessary to them, and one (1) did not own a phone.

10 (12.5%) women respondents stated that it is complex to perform transactions. Charges and

insecurity were 2 (2.5%) and 3 (3.8%) women respondents respectively. Existing literature

indicates that poverty alleviation could be achieved when women can adapt to technological and

environmental changes.


34

Table 4.12: How Often Transactions Are Performed Using OISL’s DFS


Daily 20 18.5

Weekly 51 47.2

Monthly 30 27.8

Quarterly 2 1.9

Half Yearly 1 0.9

Yearly 0 0.0

More than a year 4 3.7

Total 108 100


In Table 4.12, majority of women respondents 51 (47.2%) perform transactions on weekly basis,

30 (27.8%) on monthly basis, 20 (18.5%) on daily basis, 4 (3.7%) had performed transaction in

over a year, 2 (1.9%) performed transaction a quarter ago. 1 (0.9%) respondent each performed

transactions half-yearly.

Table 4.13: Benefits from using OISL’s DFS


Cost Saving 69 24.4

Time Saving 89 31.4

Convenience 94 33.2

Security 31 11.0

Total 283 100


Table 4.13 shows that most women respondents 94 (33.2%) used OISL’s DFS because of the

convenience it brings, 89 (31.4%) confirmed it saves time, 69 (24.4%) said it saves them from

the cost of going to the branch to access financial services and 31 (11.0%) believe it was more

secure to use.


35

Table 4.14: Access to Training and Development


Financial Literacy 51 25.4

GAP 25 12.4

Skills Development 27 13.4

Others 57 28.4

Financial Literacy, GAP 8 4.0

FLT, GAP, SDT 1 0.5

FLT, SDT 10 5.0

SDT, GAP 3 1.5

Blank 19 9.4

Total 201 100


Table 14 indicates, majority 57 (28.4%) of women respondents who selected others had not

received any form of training and development, 51 (25.4%) had received financial literacy

training, 27 (13.4%) had received skills development training, 25 (12.4%) had received training

on GAP. 22 (11.0%) of respondents have received more than one training. 19 (9.4%) of women

respondents could not give any response with regards to any training and development received.

The Marxian theory recommends that poverty alleviation could be done through training.

4.2 Measurement of Economic Empowerment

As indicated earlier during the review of literature, women economic empowerment includes

women participation in economic matters, women decision making at different levels, women

access and control of resources, access to education and health care, options to make choices,

women decision making and choice of use of resources.


36

Figure 4.3: Measurement of Women Economic Empowerment


0

20

40

60

80

100

120

140

160

Women Economic Empowerment

A D N SA SD


37

Table 4.15: How Microfinance Affects the Economic Empowerment of Women

Indicators N Minimum Maximum Mean Std. Deviation

Increased access and control of resources 201 1 5 1.73 0.58

Improvement in finances towards the

education of your children 201 1 5 1.70 0.71

Improvement in finance towards the

health of your children 201 1 5 1.87 0.80

Increased confidence to make

decisions at home 201 1 5 2.02 0.69

Easy access to financial services 201 1 5 1.78 0.67

Increased participation in decisions

on selling of assets 201 1 5 2.32 0.71

Increased control or choice of spending 199 1 5 2.09 0.69

Improved contribution to household income 201 1 5 1.92 0.73

Increased knowledge in managing your

business and finances 201 1 5 1.85 0.62

Improved skills 201 1 5 2.08 0.68

Improved yield/income 201 1 5 1.62 0.66

Increased transactions on DFS 201 1 5 2.46 1.00

Increased savings/insurance/investments 201 1 5 1.74 0.67


Table 4.16 shows how microfinance empowers women economically based on some indicators.

Respondents indicated an increase in access and control of resources (Mean=1.73, SD=0.58),

improved finances towards the education of their children (Mean=1.70, SD=0.71), improvement

in finance towards the health of their children (Mean=1.87, SD=0.80) Increased confidence to

make decisions at home (Mean=2.02, SD=0.69), easy access to financial services (Mean=1.78,

SD=0.67), increased participation in decisions on selling of assets (Mean=2.32, SD=0.71),

increased control or choice of spending (Mean=2.09, SD=0.69), improved contribution to


38

household income (Mean=1.92, SD=0.73), increased knowledge in managing their businesses and

finances (Mean=1.85, SD=0.62), improved skills (Mean=2.08, SD=0.68), improved yield/income

(Mean=1.62, SD=0.66), increased transactions on DFS (Mean=2.46, SD=1), increased

savings/insurance/investments (Mean=1.74, SD=0.67). The majority of women respondents

agreed that microfinance had a positive economic impact on them. Existing literature also shows

that microfinance has a positive impact on indicators of women empowerment such as income

levels, decisions on buying household items; decisions on child education; decisions on medical

treatment; and decisions on buying personal items.

4.3 Measurement of Women Social Empowerment

Women social empowerment is strongly influenced by leadership relations, a sense of identity,

social belonging, self-confidence, self-esteem, the ability to aspire for a better future, good health

and education.


39

Figure 4.4: Measurement of Women Social Empowerment


A46%

D1%

N0%

SA52%

SD1%

Self Confidence

A71%D

1%

N9%

SA19%

SD0%

Social Belongings

A72%D

2%

N9%

SA17%

SD0%

Sense of Identity

A63%

D1%

N22%

SA13%

SD1%

Mobility

A59%D

2%

N20%

SA19%

SD0%

Decision Making On Social

Matters

A65%

D2%

N23%

SA9%

SD1%

Legal Awareness


40

Descriptive Statistics

Table 4.16: How Microfinance Affects the Social Empowerment of Women

Indicators N Minimum Maximum Mean Std. Deviation

Self-confidence 201 1 5 1.52 0.63

Social belongings 201 1 5 1.93 0.58

Sense of identity 201 1 5 1.96 0.57

Decision making on social

matters 201 1 5 2.06 0.68

Mobility 201 1 5 2.11 0.64

Legal awareness 201 1 5 2.20 0.66


Table 4.15 depicts how microfinance empowers women socially based on some indicators. The

majority of respondents pointed out that their self-confidence improved (Mean=1.52, SD=0.63),

social belongingness was positively affected due to the intervention of microfinance (Mean=1.93,

SD=0.58), the sense of identity of women also improved (Mean=1.96, SD=0.57), women decision

making on social matters was rated (Mean=2.06, SD=0.68), mobility of women was (Mean=2.11,

SD=0.64) and their legal awareness was also affected because of access to microfinance

(Mean=2.20, SD=0.66). From the researcher’s literature review, women empowerment includes

self-confidence, awareness of their right, ability to easily move from their locations to access

various services as well as bring change in their lives and community. The results indicate that

microfinance has a positive effect on the social empowerment of women in the sample.

Data collected on women respondents revealed that the majority of women who had access to any

financial service from OISL were socially and economically empowered. The majority of women


41

who accessed loans, savings and other financial services indicated improvement in all the

indicators of social and economic empowerment except fewer women who stated that their

participation in the decision on selling assets and performance of transactions digitally has not

improved. This could be attributed to inadequate education/training on gender and the use of DFS.

The marital status of women also affected the level of their empowerment since married women

may need their partners' consent before taking any social or final decision. The results from the

finding rather show that women who were married were both socially and economically

empowered than single women based on the indicators used for the study. The occupation that

women are engaged in, through the help of OISL impacted positively on their social and economic

status.

OISL has 543,657 clients as at the end of June 2019; women represented 344,244 (63%) out of

this total number. The number of OISL’s loan clients for the end of June 2019 was 45,409 with

women representing 31,759 (70%). This implies, OISL serves more women than men. This data

corresponds to some existing literature which indicates that microfinance serves more women

compared to men in societies (Addai, 2017). Based interviews conducted among staff and reports,

they stated that OISL targets the marginalized, the poor and those who have been excluded from

mainstream banking. Additionally, they indicated that it operates a business model that is not only

transformational but also sustainable by promoting a savings culture among their clients. As part

of microfinance services which seeks to empower the poor in societies, OISL also provides sound

financial education, business training, training on the use of digital financial services and good

agricultural practices for clients engaged in farming based on staff responses. It adopts the

individual and group approach to lending to its micro, small and medium-size businesses clients.

Gender diversity and inclusion form part of OISL’s strategic objectives. Over the years, OISL has


42

provided services to meet the needs of women and currently supports some women in selected

rural farming communities in Ghana to specifically, increase their economic empowerment. The

general responses showed that the intention of microfinance is to provide both financial and non-

financial services to empower and transform people especially the poor and marginalised in

societies.


43

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.0 Introduction

This chapter contains a summary of the findings deduced from the study. It also focused on the

recommendations drawn from the findings and the conclusion of this study.

5.1 Summary of Key Findings

It was evident from the findings that, majority of women who accessed microfinance were aged,

41 years and above had. Women aged, 25years and below were the least among respondents who

had accessed microfinance. The dominance of women aged 41 and above involvement in

microfinance, could be attributed to the fact that financial responsibilities increase as age increases.

Women who fall within this age bracket have more responsibilities in taking care of their families

especially, their children and therefore, the quest to engage in revenue-generating businesses to be

sustainable through access to microfinance. The results of the finding also revealed that women

aged 41 years and above do not perform transactions on the DFS platform.

The educational background of respondents showed that they were literate enough to understand

the conditions of services they access from microfinance institutions. Hence, their responses could

also be relied upon for the purpose of this study. Most of the women were engaged in trading and

farming. Occupation of women who deal with microfinance were in the minority were; teachers,

students, seamstresses, securities, pensioneers, hairdressers, forex bureau attendants, cashiers,

bank officers, national service persons, entrepreneurs, caterers, beauticians and kayayeis (street

porters). Teachers represented the least number of women who benefited from microfinance credit


44

probably because they had access to other sources of finance which provide lower interest rates

and the others could be due to their eligibility.

The majority of women were in their 3rd or more cycles this indicated that most women relied on

loans to make routine financial decisions.

To determine how women are easily adapting to the technological trend in accessing financial

services and how it is empowering them in recent times, the study revealed that, 60.2% had

registered on OISL’s DFS and 39.8% had not registered on any OISL’s DFS out of the total number

of respondents. Reasons for some women who had not registered on OISL’s DFS included,

complexity, charges, insecurity, some were not interested for personal reasons, no need for it, not

necessary and one (1) did not own a phone. Majority of women who were registered on performed

transactions every week. Women received financial literacy training, skills development training

and GAP training. Some had also not received any training and some were unaware of any training

and development program.

Microfinance has proven to be a developmental tool for the empowerment of women both socially

and economically based on the research study.

5.2 Conclusion

The study revealed that microfinance is dominated by women who are engaged in the informal

sector and contributed to their level of self-confidence, sense of belonging, sense of identity, easy

accessibility to financial services. The marital status, education as well as women engagement in

any form of occupation, affected the social and economic empowerment. Women contribution to

decisions on social matters and their rights are positively affected because their financial

dependence on others are reduced through the provision of financial services and trainings by


45

MFIs. Most women indicated that their control of resources, financial support towards the

education and health of their children, confidence to make decisions at home, participation in

decisions on the selling of assets, skills and income have improved due to access to microfinance.

Most of the women respondents who perform transactions using OISL’s DFS said that it was

convenient, time saving, cost saving and more secure when performing transactions.

5.3 Recommendations

Traditionally, women have been marginalized. They are mostly financially dependent and the

more vulnerable members of society. Women form an essential part of society yet their status and

involvement in decision making, as well as economic activities, are very low. MFIs have become

innovative in designing products and services that have kept women away from accessing formal

financial services but does not address all the barriers to women empowerment. When products

are designed with the needs of women, it will contribute a lot to women empowerment.

To strengthen the impact of microfinance services on the empowerment of women in Ghana, the

study recommends that MFIs should deepen the training of its clients especially women on

financial literacy, skills development, business training and good agricultural practices to enhance

their competences and increase their yield/income.

It would also be recommended that the management of microfinance institutions should identify

the financial and social needs of women and come up with innovative policies that will reduce the

bureaucracies in accessing financial services. They should as well put in place structures that can

ensure adherence to set policies with the help of the government and NGO’s.


46

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APPENDIX 1

UNIVERSITY OF GHANA

BUSINESS SCHOOL

SECTION A: SOCIO-ECONOMIC AND DEMOGRAPHICS.

1. Age (Years)

1. [ ] Below 25

2. [ ] 25 – 30

3. [ ] 31 – 35

4. [ ] 36 – 40

5. [ ] 41 and above

2. Education Background

1. [ ] No Formal Education

2. [ ] Primary

3. [ ] JHS

4. [ ] SHS

5. [ ] Diploma/HND

6. [ ] Degree

My name is Irene Esinam Awudjah from the University of Ghana, Business School. This

questionnaire is to gather information about the impact of microfinance on women empowerment

in Ghana for a project work in fulfilment of my study. It will be much appreciated if you could

respond to the questions put to in the attached questionnaire. The outcome of this is solely academic

purpose. Any information given will be strictly treated as confidential and your anonymity will be

highly assured.

Thank you.


52

7. [ ] Masters

3. Occupation

1. [ ] Trader

2. [ ] Farmer

3. [ ] Teacher

4. [ ] Other (Please Indicate)

…………………………………………………..

4. Marital Status

1. [ ] Single

2. [ ] Married

3. [ ] Separated/Divorced

4. [ ] Widow

5. Number of dependents

1. [ ] 1-2

2. [ ] 3-4

3. [ ] 5-6

4. [ ] Above 6

Financial Services Accessed And Used (Inputs)

6. What financial services have you accessed from OISL?

1. Savings 1. Yes [ ] 2 No [ ]

2. Insurance 1. Yes [ ] 2 No [ ]

3. Investment 1. Yes [ ] 2 No [ ]

4. Loan 1. Yes [ ] 2 No [ ]


53

5. Others [ ] Specify………………………………….

7. Which type of loan did you access from OISL?

1. [ ] SME 2. [ ] Personal 3. [ ] Group 4. [ ] None

8. Which cycle are you?

1. [ ] First cycle 2. [ ] Second cycle 3. [ ] Third cycle

4. [ ] More than three cycles

9. Have you been registered on any of OISL’s Digital Financial Services (DFS)?

1. Yes [ ] 2. No [ ]

10. If Yes to question “9”, indicate which service/s.

1. Opportunity Mobile [ ] 2. Opportunity Cash [ ] 3. E-zwich

4. Others [ ] Specify………………………………….

11. If No to question “9”, indicate your reasons

1. Complexity [ ] 2. Charges [ ] 3. Insecurity [ ] 3. Unaware [ ]

4. Others [ ] Specify………………………………….

12. Do you perform transactions on OISL’s DFS platform?

1. Yes [ ] 2. No [ ]


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13. How often do you perform transactions on OISL’s DFS platform?

1. Daily [ ] 2.Weekly [ ] 3. Monthly [ ] 4. Quarterly [ ]

5. Half Yearly [ ] 6. Yearly [ ] 7. More than a Year [ ]

14. If No to question “12”, indicate your reasons

1. Complexity [ ] 2. Charges [ ] 3. Insecurity [ ] 3. Unaware [ ]

4. Others [ ] Specify………………………………….

15. What are some of the benefits you receive from the use of DFS?

1. Cost Saving [ ] 2.Time Saving [ ] 3. Convenience [ ] 4. Security [ ]

5. Others [ ] Specify………………………………….

16. Have you had access to any form of training and development?

1. Financial Literacy Training 1. Yes [ ] 2. No [ ]

2. Good Agricultural Practices Training 1. Yes [ ] 2. No [ ]

3. Skills Development Training 1. Yes [ ] 2. No [ ]

4. Others [ ] Specify………………………………….

SECTION B: MEASUREMENT OF SOCIAL EMPOWERMENT

17. Please on a scale of 5 where 1 – Strongly Agree (SA), 2 – Agree (A),

3 – Neutral (N), 4 – Disagree (D) and 5 – Strongly Disagree (SD)

Indicate your level of agreement or disagreement with the statement below;


55

STATEMENT LIKERT SCALE

Social Empowerment SA A N D SD

1. Self-confidence

2. Social belongings

3. Sense of identity

4. Decision making on social matters

5. Mobility

6. Legal awareness

SECTION C: MEASUREMENT OF ECONOMIC EMPOWERMENT

18. Please on a scale of 5 where 1 – Strongly Agree (SA), 2 – Agree (A),

3 – Neutral (N), 4 – Disagree (D) and 5 – Strongly Disagree (SD)

Indicate your level of agreement or disagreement with the statement below.

STATEMENT LIKERT SCALE

Outputs SA A N D SD

1. Increased access and control of resources

2. Improvement in finances towards the education of

your children


56

THANK YOU.

3. Improvement in finance towards the health of your

children

4. Increased confidence to make decisions at home

5. Easy access to financial services

6. Increased participation in decisions on the selling

of assets

7. Increased control or choice of spending

8. Improved contribution to household income

9. Increased knowledge in managing your business

and finances

10. Improved skills

11. Improved yield/income

12. Increased transactions on DFS

13. Increased savings/insurance/investments


Documents

UNIVERSITY OF GHANA MICROFINANCE AND WOMEN …