The Role of Microfinance in Asset-Building and Poverty Reduction: The Case of Sinapi Aba Trust of Ghana

Posted: 21 May 2009

See all articles by Joseph Kimos Adjei

Joseph Kimos Adjei

affiliation not provided to SSRN

Thankom Gopinath Arun

University of Central Lancashire

Farhad Hossain

University of Manchester

Date Written: May 21, 2009

Abstract

The paper evaluates the extent to which Sinapi Aba Trust has contributed to poverty reduction among rural and urban poor especially women by supporting them with small loans to expand their businesses to generate income to build up their asset base. Using a cross-sectional data from 547 respondents, the study found that participation in the programme has enabled established clients to own savings deposits and subscribe to a client welfare scheme which serves as insurance to pay off debts in times of illness or death. Established clients were also found to be in a better position to contribute towards the education of their children and payment of healthcare for members of their households as well as contribution towards the purchase of household durables. The study noted that programmes that are financially sustainable have greater effects on participants, and that there is the need for clients' graduation to benefit most from participation in such programmes.

Keywords: Microfinance, Asset-building, Poverty reduction, Financial sustainability

Suggested Citation

Adjei, Joseph Kimos and Arun, Thankom Gopinath and Hossain, Farhad, The Role of Microfinance in Asset-Building and Poverty Reduction: The Case of Sinapi Aba Trust of Ghana (May 21, 2009). Available at SSRN: https://ssrn.com/abstract=1408051

Joseph Kimos Adjei (Contact Author)

affiliation not provided to SSRN ( email )

Thankom Gopinath Arun

University of Central Lancashire ( email )

United Kingdom

Farhad Hossain

University of Manchester ( email )

Oxford Road
Manchester, M13 9PL
United Kingdom

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