The Role of Microfinance in Asset-Building and Poverty Reduction: The Case of Sinapi Aba Trust of Ghana

Joseph Kimos Adjei, Thankom Arun and Farhad Hossain

Global Development Institute Working Paper Series from GDI, The University of Manchester

Abstract: The paper evaluates the extent to which Sinapi Aba Trust has contributed to poverty reduction among rural and urban poor especially women by supporting them with small loans to expand their businesses to generate income to build up their asset base. Using a cross-sectional data from 547 respondents, the study found that participation in the programme has enabled established clients to own savings deposits and subscribe to a client welfare scheme which serves as insurance to pay off debts in times of illness or death. Established clients were also found to be in a better position to contribute towards the education of their children and payment of healthcare for members of their households as well as contribution towards the purchase of household durables. The study noted that programmes that are financially sustainable have greater effects on participants, and that there is the need for clients’ graduation to benefit most from participation in such programmes.

Date: 2009
New Economics Papers: this item is included in nep-afr, nep-dev and nep-mfd
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Persistent link: https://EconPapers.repec.org/RePEc:bwp:bwppap:8709

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