Women's Access to Microfinance Services in Southern Ethiopia: Assessing the Promises, Impacts, Challenges and Gaps

This study focused on examining the participation of women in micro finance institutions (MFIs) based on data collected from 11,162 households selected from 43 districts. The result indicated that women’s participation in... [ view full abstract ]

This study focused on examining the participation of women in micro finance institutions (MFIs) based on data collected from 11,162 households selected from 43 districts. The result indicated that women’s participation in MFIs is fairly low (only 17%). 75% of the clients use the borrowed money for income generating activities. The main challenges to their financial inclusion and sustenance includes high loan requirements, poor mobilization by the service providers and media , high withdrawal rate of the saved money, huge gender gap in the disbursement of loan, insufficient provision of entrepreneurial trainings on skill development and financial outlay and frequent dropouts. To enhance women’s financial inclusion, we recommend the following measures: awareness creation to avoid women’s social seclusion, opening sub branches in different villages, empowering existing MFIs, removing institutional and regulatory red tapes, designing mechanisms to ensure women's control over loans and rewarding successful model women entrepreneurs.