Microfinance loans, women's economic empowerment, and poverty: a case study of Baobab Microfinance Company. Issue 1 (2nd January 2022)

• Record Type: Journal Article
• Authors: Cooke, Edgar F.A; Amuakwa-Mensah, Franklin
• Is Part Of: Journal of development effectiveness. Volume 14:Issue 1(2022)
• Page Start: 34
• Page End: 55
• Publication Date: 2022-01-02
• Subjects: Microfinance -- poverty -- women's empowerment -- impact analysis; Economic development -- Periodicals; Developing countries -- Economic conditions -- Periodicals; Economic development; Economic history; Developing countries; Periodicals; 338.91724
• DOI: 10.1080/19439342.2021.1953568
• Languages: English
• ISSNs: 1943-9342

Abstract

ABSTRACT: We investigate the impact of Baobab Microfinance Company (BMC) loans on poverty and economic empowerment of female clients using a mixed methods approach. Using a sample of 411 BMC clients, we find in some cases, relative lower poverty and higher economic empowerment for clients with a higher frequency of loans compared to those with a lower frequency of loans. An implication is that the marginal impact of loans across different loan cycles is U-shaped rather than linear and has a short-term impact on clients. Furthermore, our qualitative results suggest that loans help women lower poverty and become economically empowered.