Transforming Local Economies Through Microfinance in Rural Ghana

Abstract

This chapter examines the role of microfinance in the transformation of rural communities in Ghana. To achieve this aim, a synthesized review of existing literature on microfinance outcomes on employment creation, poverty reduction, female empowerment, and microenterprise development in Ghana was conducted. The review shows that microfinance has contributed significantly to the transformation of rural communities in Ghana by helping to reduce poverty and improving the living standards of the poor. The review also demonstrates that microfinance contributed positively to the socio-economic well-being of women in Ghana. Microfinance has also played a positive role in the transformation of rural communities in Ghana by providing credit to support microenterprise projects. Furthermore, the analysis shows that microfinance contributed positively to the transformation of rural communities in Ghana by providing credit to individuals and microenterprises to create jobs and improve living standards.