Micro-Finance Services and its effect on Women’s Economic Empowerment in Eritrea: A Case of Southern Region

Tuccu Selomon


This study assessed the role of microfinance services on women’s economic empowerment by specifically focusing on four sub-zones of the southern region. The study employed the positivism philosophy as the researcher intends to observe the facts as they exist in the field. The research was quantitative. The targeted population of the study were all women from who received loan from the SMCP and a sample of 200 women were used. The study used the simple random sampling which is common in survey-based strategy. As regards to primary data, the data was collected through questionnaire and it was analysed using SPSS – AMOS that tests relationships between microfinance services and economic empowerment variables to confirm relationships. Results indicate loan and social capital have strong significant effect to women empowerment, while saving show weak effect. Training was found to have insignificant effect to empowerment. This study contributes to knowledge on how women can be empowered through microfinance that has not been extensively studied. The loan provision and social network are considered the most significant microfinance factors that affect women empowerment. It also shades light of how the groups financing can be of help to resolve women urgent demand for financial sources.

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ISSN : 2251-1547