Impact of Micro-finance on Women’s Economic Empowerment A Case-Study of Amhara Credit and Saving Institution (ACSI), Kobo Woreda, Amhara National Regional State, Ethiopia.
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Date
2007-11
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Addis Ababa University
Abstract
icro-finance institutions have made significant contributions to the
livelihoods of many people through the provision of financial and
supporting services to the poor, especially women in rural environments.
Thus, it is understood that micro-financing, as a development strategy, empowers
women who were hitherto marginalized, and as such, were restricted from
participating in the social, economic and political activities of their societies.
This study examined the impact of Amhara Credit and Saving Institutions’
(ACSI’s) micro-financing service on women’s economic empowerment. Data was
collected from a total of 171 rural women consisting of 54 Matured Clients, 33
Incoming Clients, and 26 Dropouts (ex-Clients) in ACSI program areas; and 16
and 42 non-clients in program and non-program areas respectively situated in
Kobo Woreda, Amhara National Regional State. The empirical analysis of the
study was conducted using both descriptive statistics and Binomial Logit
regression analysis.
The results of the study indicate that the micro-financing scheme has a positive
impact on women’s economic empowerment as measured by the increased
participation of women in household decision-making. ACSI’s program has had
a positive impact on the living conditions of its clients. Compared to the
Incoming clients and non-clients, matured clients of ACSI have improved their
household incomes, asset possession levels, and savings habit; thereby positively
affecting their ability to fully participate in household decision-making.
However, the impact of improvement of the above three variables; income, asset
possession and savings habit, does not significantly affect the variable “decision
making on household large sales”, which was used as an indicator of women’s
economic empowerment in the regression analysis. The implication of the
findings is that giving women access to resources does not always mean
empowering them economically, unless they can also exercise full control, and
make important decisions, over their resources. Thus, beyond financial support,
the contribution of micro-finance services to women’s economic empowerment
should be enhanced through a combination of more effective support services of
MFIs or linkages should be made with services provided by other agencies like
the Woreda Women’s Affaire’ Office and other gender-focused organizations.
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Keywords
Micro-finance on Women’s Economic