Microfinance: A Major Transformational Tool

In a group of ten youthful people in Ghana, half of the group are unemployed, and most of them have dropped out of schools living in impoverished homes. They lack access to business loans, and most of them are living in uttermost poverty. Some of these conditions have been contributed by the recent insecurity case in Ghana. In addressing the situation, the microfinance sector in the country has a significant role to play in empowering the young men and women to improve their lives and the community at large. The industry can contribute to the Ghanaian economy through the creation of job opportunities and the improvement of the production levels in the informal sector through the right policies and support systems. One objective of microfinance is to alleviate poverty and create institutions to deliver financial services to the poor and the marginalized in the society.

Microfinance empowers the poor to meet basic needs and protect them against financial risks, improving the general welfare and empower women through supporting their economic participation as a quest for gender equality. Microcredit Association Ghana (MCAG), the supervisory umbrella of Bank of Ghana can boast over 700 licensed micro creditors countrywide with over 5000 employees to help in the reduction of poverty and unemployment levels. Micro creditors are a significant transformational tool that can propel greatness in a country and improve the lives of a people.


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