The Nexus between Microfinance and Poverty Reduction in Rural Communities of Hohoe Municipality
Keywords:microfinance, poverty alleviation, agricultural households
There is existence of spatial inequality in development between rural and urban areas due to lack of economic growth and effective policies for rural development. To investigate the potency of microfinance in poverty reduction, the study employed economic and social variables as benchmarks for measuring the impact of microfinance. A cross-sectional survey was used to assess the experiences of micro-finance activities on beneficiaries and loan arrangement accessibility. The study revealed that Microfinance Institutions have not developed appropriate strategies that target rural agricultural households. In addition, services delivered are not cost effective to enable even the poorest of the poor to access credit. Hence inferring from the mean rating, microfinance has not brought any significant difference in the economic well-being of beneficiaries because the monthly income of both beneficiaries and non- beneficiaries are the same.