Microfinance Services of Sinapi Aba Trust and Human Capital Development of Beneficiaries in the Ashanti Region of Ghana

Abstract

The study set out to examine Sinapi Aba Trust (SAT) microfinance services contribution towards building human capital asset of beneficiaries in the Ashanti Region, Ghana. A cross-sectional approach was adopted to gather data from 361 beneficiaries using both quantitative and qualitative methods. Interview schedule and interview guide were used to elicit data from programme beneficiaries and staff of SAT. The descriptive analysis was used to describe and measure relationships of socio-demographic characteristics of beneficiaries. The non-parametric Mann Whitney U test was used to test the differences between incomes before and after obtaining microfinance services. The 5-point Likert scale was used to measure the respondents’ opinions on statements on changes in human capital development. Findings from the study indicated that the features of SAT services comprised financial and non-financial programmes. The microfinance services enabled beneficiaries to increase their incomes to assist in human capital development. Through the provision of microfinance services beneficiaries’ outlook and investment in human capital development was enhanced. Beneficiaries’ background characteristics influenced the dependent variable, their human capital development, in various levels. The study among others recommended that studies on microfinance should go beyond the conventional role of credit provision to incorporate non-financial services. The government and sponsors of microfinance should collaborate with the microfinance sector to pull resources for human capital development of beneficiaries.