The Role of Microfinance Institutions in Empowering Women in Eritrea

Abstract

The purpose of this study was to examine the role of microfinance on women s empowerment.\xa0 A comparative cross-sectional survey was conducted in Eritrea. This study used a quasi-experimental design that requires treatment and control groups. The data collected from a sample of 399 new and old women clients of the saving and microcredit program were used to analyze the role of microcredit services on women empowerment. Evidence from this study shows that participation in saving and microcredit programs (SMCP), increases the purchase of personal consumer goods, the degree of respect for women clients from their spouses, and next in kin and women s degree of social recognition. On the other side, the majority of participants asserted that decision-making ability in children s education, food expense, savings, business purchases, use of loans, and profits is shared with their spouses regularly. The findings of the study can help policymakers to design strategies that encourage more women to participate in microcredit programs to achieve their empowerment. Keywords : Decision making, Microcredit, Saving, Women Empowerment DOI : 10.7176/EJBM/11-36-09 Publication date: December 31 st 2019