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Barriers still exist in accessing credit – Research
Accra, Oct. 29, Ghanadot/GNA - A research finding on
Micro-Finance Services for rural women has revealed several
barriers, including high interest rates, lack of financial
education and demand for collaterals in sourcing such
facilities.
This has contributed to women micro-entrepreneurs not
sourcing loans for the expansion of their businesses.
Dr. Irene S. Egyir, consultant and lead researcher at a
sensitisation workshop for members of the Christian Mothers
Association (CMA) on Wednesday, said though women’s
participation in productive sectors, was significant they
lacked access to micro-financing, making it difficult for
them to play their roles effectively.
She said the research, which was funded by the Business
Sector Advocacy Challenge (BUSAC) Fund in response to the
call for change in the micro-finance sub-sector, was aimed
at promoting easier lending access to rural women micro-
entrepreneurs.
Dr Egyir said it was the core objective of the study to
document the current situation of barriers to access of
micro finance to rural women entrepreneurs and activities of
Micro-Finance Institutions (MFI) to form the basis of an
advocacy action to bring about the desired change.
She also urged MFIs to create a level of working environment
which would attract more rural women, as most women lacked
the courage to even enter a banking hall to attempt to
transact any business.
“The barriers to loan acquisition was creating a major gap
between females and their male counterparts in the business
sector, leading to the current low status of rural women.”
Mrs Egyir said this had become an impediment in attaining
national growth and poverty reduction among majority of
Ghanaian women, thereby reducing the chances of Ghana
attaining the Millennium Development Goals.
She said the research indicated that though most financial
institutions had embraced the challenge of assisting micro
businesses, females continued to receive less access to such
credits.
Mrs Egyir attributed this handicap of women
micro-entrepreneurs to high illiteracy levels among rural
women and poor credit history as well as negative attitudes
towards credits.
She said micro-credits had played positive roles in the
livelihood of many rural women and their families over the
years. The reduction of interest rates on micro loans by
MFIs, financial education and removal of collaterals would
therefore encourage many women to patronise the facility.
Dr Egyri called for better collaboration and understanding
between micro-lenders and micro borrowers, reduction in loan
processing fees, processing times and introduction of longer
repayment periods.
Mrs Christine Abavana, Director, Legal Services, Ghana Cocoa
Board advised women entrepreneurs to practice good record
keeping, monitor their business trends and cash flows as
well as interests to enable them to secure more loans to
expand.
She also advocated good practice in loan repayments and
urged women creditors to be truthful in their dealings with
the banks to enable others to benefit from the loan
facility.
GNA
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