The Role of Microcredit Programme in Empowerment of Women: The case of Dire Dawa Women Association’s Microcredit Programme

Abstract

This case study examines the role of microcredit programme in changing the social and economic status of women in the context of empowerment. It is based on the findings of primary fieldwork in Dire Dawa, investigating the processes and results from the implementation of Dire Dawa Women Association’s Micro Credit Programme. The central activity of the programme was the transfer of money in value of Ethiopian Birr starting from 2,500 to 120,000 to targeted women from extremely poor households. This investment in cash was given specifically to a woman within that household and the majority of these female beneficiaries used it to start their own small businesses. This study argues that interventions which adopt primarily an economic entry point coupled with minimum training on basic financial literacy and gender had an empowerment effect in the lives of the women in building the agency role in other words, having the capacity to act on what they know. Importantly, giving them back their sense dignity and worth as a human being to be equally treated and to not to be deterred from reaching their full potential.