The Politics of Microcredit Facilities as Pro-poor Intervention in Solving Gender Inequality in Ghana: the Political Settlement Perspective

Poverty is ubiquitously chronic in Sub-Saharan Africa. Interventions to reduce the entrenched inequality by several government regimes have received mixed results as political elites spearhead many of these programs-cum-institutions hence moderate their full manifestation. Using the political settlement theory, the study interrogates the management of microcredit interventions in Ghana. In-depth interviews from multi-stakeholder groups reveal that Ghana’s political climate adversely impacts the full expression of the pro-poor intervention in empowering women and reducing poverty. The study again reveals that the continuous politicisation of the pro-poor scheme has resulted in high-interest rates and crony lending. The situation reflects the short-term policies of political elites that do not culminate in the general wellbeing of women, thereby creating gender imbalances. Nonetheless, access to the facility has improved the lives of women inter alia, business startups, expansions, savings, reduced domestic violence, and reduced perception of the traditional roles of women. The study, therefore, concludes that an all-inclusive approach to development and a system-based model that connects state and non-state actors provide a possible leeway to fully implement the pro-poor scheme.