Assessing the impact of microfinance on gari processing in Northern Region: A theory of households in the West Gonja District

Abstract

Cassava processing plays significant roles in reducing the poverty levels of women through job provision and increase in income levels. Available evidence shows that little research has been done particularly on assessing the impact of microfinance on gari processing focusing on a single approach. Cognizant of the various methodologies of impact assessment, this particular study used eight indicators to assess the impact of microfinance on households engaged in gari processing. Data were obtained from a random sample of 124 household respondents and 4 microfinance institutions. Empirical findings indicate that microfinance increases income levels of participants and thus their ability to acquire productive assets, save, expand and diversify production. The implication is that they have improved on their basic needs. However, participants indicate high interest rates on loans, lack of grace period on loans collected, lack of access to market information and poor processing equipment as the major setbacks. It is recommended that interest rates on loans should be reviewed so that more people con have access to loans to help them expand their production levels so as to escape the vicious cycle of poverty.