Reducing rural poverty through microfinance intervention: A case study of Lower Pra rural bank limited Shama

Abstract

The aim of the study was to ascertain how the introduction of microfinance programs by the Lower Pra Rural Bank in the rural areas of their catchment area has helped to alleviate the poverty situation in the Shama, Mpohor Wassa East Districts and Sekondi-Takoradi Metropolitan Area. It was also to establish whether or not the program has had any effects on the business operations of the beneficiaries and their livelihoods. In all 10 groups were sampled out of which 60 respondents made up six members from each group were selected. The books of the bank were also examined to ascertain the number of people who have benefited from the program between 2004 and 2008. The data was analyzed using the Statistical Products and Services Solutions (SPSS). The statistical tools employed in analyzing the data were cross tabulation, frequencies and percentages. The results indicate that there have been some improvements in the living standards of the households of people who have joined the microfinance scheme. There have also been improvements in the business operations of the beneficiaries. It is recommended that the bank should increase its lending program to other economic sectors, especially agriculture and other cottage industries in the district. Non-governmental Organizations and the local authorities must also get involved by offering grants to the others who are unable to access the bank’s programs.