The challenges of Microfinance institutions in Ghana in relation to international financial source support

B.Sc. Mavis Ohene Darko

Master's thesis

Abstract:

The MFIs over the last two decades has seen some contributions from donor organizations, agencies and investors in and outside the country. Nevertheless, Microfinance has increased hastily by 20-30 percent annually. MFIs currently serve over 15 % of the countrys total population with their financial assistant in comparison to 10 % for the commercial microfinance sector. The institution today continues to grow and hinges on donor support and interventions but there are still remains huge gaps as evidenced by lack of alternative and competitively priced on-lending funds for the microfinance in Ghana.To achieve the aim of the thesis, three hypotheses were postulated. The research took on to examine the challenges facing microfinance sector in Ghana in terms of financial sources support, secondly, to examine the impacts international financial sources can help develop the microfinance sector in Ghana and also to identify the type of international financial sources support in Ghana. Questionnaires were distributed among 80 MFIs for data collection. Data collected was analyzed using Statistical Package for Social Sciences (SPSS v 20) employing the use of Chi-Square statistical tool to answer the proposed hypothesizes obtained showed that, the years of operation, ability to provide a guarantor and asset base, good financial report as well as the ability to pay clients the amount request were the challenges faced by MFIs in Ghana in terms of accessing international financial support. Also, international financial sources such as Accion international, Ada and Symbiotics were identified as the primary source of international financial support. More so, the study also revealed that, accessing international financial support has helped most of the MFIs to increase their outreach potential and thereby achieving their aim of poverty reduction in the country. Empirically, the study proved that, the years of operation, time taken for loan to be granted and fulfillment of requirement of the international financial institutions significantly affects the amount of loan requested. Based on the results obtained, the study recommends the creation of credit schemes to enhance the access of credit by MFIs in Ghana.is of the study.

Keywords

Microfinance, Microfinance Institutions, International Financial Institutions, Challenges, Sustainability, Ghana

Language used: English

Date on which the thesis was submitted / produced: 22. 4. 2016

Thesis defence

• Supervisor: Dipl.-Kfm. Tomáš Hes, Ph.D.

Czech University of Life Sciences Prague

Faculty of Tropical AgriSciences

Master programme / field:
Tropical Agriculture / Sustainable Rural Development in the Tropics and Subtropics