Impact of Microcredit on Income Generation Capacity of Women in the Tamale Metropolitan Area of Ghana

Abstract

Microcredit has been seen by national governments and their development partners as a strategic tool for the empowerment of vulnerable populations particularly women. Evidence from the empirical literature suggests that microcredit has the power to improve the productive capacity of people who have access to it. This paper examines the impact of microcredit access on income generation capacity of women in the Tamale Metropolitan area of the Northern Region of Ghana. Cross-sectional research design was employed and primary data collected through interviews. The results revealed that access to microcredit helps improve the income generation capacity of women in the study area. It is therefore recommended that government and its development partners should intensify their efforts in the provision of microcredit to women which will help them out of poverty.

Key Words: Microcredit, Ghana, Tamale, Women, Income Generation