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Microfinance loans, women’s economic empowerment, and poverty: a case study of Baobab Microfinance Company

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  • Edgar F.A Cooke
  • Franklin Amuakwa-Mensah

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.

Suggested Citation

  • Edgar F.A Cooke & Franklin Amuakwa-Mensah, 2022. "Microfinance loans, women’s economic empowerment, and poverty: a case study of Baobab Microfinance Company," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 14(1), pages 34-55, January.
    • Handle: RePEc:taf:jdevef:v:14:y:2022:i:1:p:34-55
    DOI: 10.1080/19439342.2021.1953568
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