Assess the economic impact of Microfinance Institution on women in Tamale: a case of Baobab Microfinance Company
Keywords:economic impact, Microfinance Institution, women, Baobab Microfinance Company, Tamale
Microfinance has played a critical role in poverty reduction within its catchment area. A viable microfinance institution helps improve economic status of beneficiaries. This study ascertains the purpose of loan and income generating activities of female clients of Baobab Micro finance Company Limited. The study used The design enabled the researchers to obtained extensive data from women’s who receives microfinance service from Baobab Microfinance Company Limited in Solidarity groups at Tamale Metropolis. The sample size for this study was 100 women determined using Slovin’s formula for sample size determination. The results showed that, 98% of BMC clients confirm that their diet had improved for the past three months whilst only 18.48 % of non-clients confirmed that their diet had improved. Results from the survey revealed that 22 % of respondents obtained loans between GHC1 – 500, while 10 % and 6 % of respondents obtained loans between GHC501-1000 and GHC1001 – 1500. The study recommended that, more avenue of micro credit should be made available to women groups since it has the capacity to improve their household decision making ability.