Impacts of Microfinance on Grassroot Development a Case Study Uf the Ketu North District

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CHARTED INSTITUTE OF FINANCIAL AND INVESTMENT ANALYST (CIFIA)

ASSESSING THE IMPACT OF MICROFINANCE IN GRASSROOT DEVELOPMENT.

BY PRAISE DAVIDSON AMU

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DECLARATION
I hereby declare that this piece of work is the outcome of my own research except for the references which served as a source of information which I have acknowledged. This work has therefore never been presented for another certificate, Diploma or Degree. I therefore fully accept all omissions and errors that might appear in this paper. NAME: PRAISE DAVIDSON AMU SIGNATURE: DATE: …………………………………………………

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CERTIFICATION
The undersigned certify that they have read and recommended to Charted Institute of Financial and Investment Analyst the acceptance of the dissertation entitled: ASSESSING THE IMPACT OF MICROFINANCE IN GRASSROOT DEVELOPMENT, submitted by PRAISE DAVIDSON AMU in partial fulfillment of the requirement for the admission into CHARTED INSTITUTE OF FINANCIAL AND INVESTMENT ANALYST.

Name of Director…………………………………………………….. Signature……………………………………………………………………... Date…………………………………………………………………………

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ACKNOWLEDGEMENT
I want to give glory to God for His protection, guidance and peace to undertake this research. I also acknowledge the contribution of many who make this work a success. To you all, I say thank you and God bless you.

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DEDICATION
I dedicate this work to my lovely children, Michael and Delisa.

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ABSTRACT
The role played by the informal and semi-formal financial sector to the growth and development of Ghana is very enormous. Also the widespread of the activities of microfinance and its role as tool for development at the grass-root level brought to bare the importance of microfinance programs in the country. The question however, is that, how best is microfinance contributing to development especially among those who are influence by decisions of governments art the grassroots development. To answer this question, this research was conducted to assess the impact of microfinance in grass-root development in the Ketu North District of the Volta Region. Relevant literatures were reviewed to portray the idea of microfinance concepts, theories, approaches and its evolution in Ghana as well as International standards that that could be used to assess the impact of microfinance in the country. Information was gathered using structured questionnaires that were administered using a sample size of 100. The data was analysed using tables and percentages to assess the impact of microfinance in grass-root development in the Ketu North District of the Volta Region. It was found that, microfinance programs in the district have positively impacted the lives of beneficiaries and their communities. The program has been able to reduce poverty levels from 56% to 44.8%. Also in terms of education, enrolments shot up both at the primary and junior high levels while drop-out rates keep falling. Literacy rates have also increased from 59.1% to 67.9%. Microfinance has also been able to create over 168 indirect jobs and 975 direct jobs in the district among the youth and women. It was however recommended that the Microfinance Institutions include Advisory services and Micro insurance to widen the impact base of their activities. Again they should consider refinancing existing loans and businesses instead of granting more loans. The research was conducted between October and November, 2012.

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TABLE OF CONTENTS
Title Page Declaration ………………………………………………………………………………………… 2 Certification ……………………………………………………………………………………….. 3 Acknowledgement ……………………………………………………………………………… 4 Dedication …………………………………………………………………………………………… 5 Abstract ……………………………………………………………………………………………… 6 Table of Contents ………………………………………………………………………………… 7 List of Tables ………………………………………………………………………………………… 10 CHAPTER ONE………………………………………………………………………………………… 11 1.0 Background of the Study ………………………………………………………………… 11 1.1 Statement of Problem ……………………………………………………………………… 12 1.2...
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