Assessing the Factors Militating Against Microfinance in Alleviating Chronic Poverty and Food Insecurity in Rural Northern Ghana

Abstract

This research paper concentrates on failures of microfinance in alleviating poverty and food insecurity in the rural northern Regions of Ghana. This article contends that the rural northern Ghanaians have failed to grasp the opportunities provided by many microfinance services, to help out lift the canker of poverty and the chronic food insecurity, but rather migrating to the rural areas of southern Ghana. The article adapted descriptive and survey investigation strategies. A snowballing sampling procedure was used to sample and investigate 300 respondents, comprising 200 (66.6%) females and 100 (33.3%) males who are practicing mostly Susu-an informal microfinance service in their new rural settlements in the Bono Ahafo Region of Ghana-Sunyani. Scientific Package for Social Science (SPSS) statistical software was employed to analyze the survey data, and the results presented in tables form. The sum and summary of this study reveals that, Susu-informal form of micro-lending and saving is an effective financial tool to improving the rural northern women to alleviate her from poverty and chronic food shortage, however, the patriarchal environmental beliefs, which is part and parcel of these women lives are the main standing blocks against this worthy cause. The study recommended that, districts assembles should enforce the by-laws that for bit any outmoded unproductive cultural activity currently in the rural northern set ups, the women be sensitized about their rights and privileges with the support of the men, among others.