Microfinance institutions and women's empowerment: empirical evidence in Tanzania

The study examines whether microfinance institutions (MFIs) empower Tanzanian women and identifies challenges that face women in gaining empowerment. Descriptive survey design involving 525 respondents was employed. Selection was done by simple random technique. Personal interview was used to collect data. Data were analysed using structural equation modelling and thematic analysis. The findings indicate that women participating in the MFIs were empowered in terms of control over income and savings, decision making, freedom to move to the markets or banks, purchase independently and knowledge of legal rights. The ability to purchase furniture independently and to move to the parents and siblings were insignificant. Market and business instability, high interest rate of the loans provided, bureaucracy in loan processing, family responsibility and shortage of capital were the challenges which impede women in gaining empowerment. Policies should be designed which have noteworthy of success which test program and product innovations that address women's difficulties.