This paper examines the extent to which microfinance has contributed to poverty reduction in Ghana by supporting their clients with both financial and non-financial services to build up their asset base. The study found that participation in the programme has enabled established clients to own savings deposits and subscribe to a client welfare scheme to pay off debts in times of illness or death. They were also found to be in a better position to contribute towards the education of their children, payment of health care for members of their households and the purchase of household durables. The study further noted that clients who remained in microfinance programmes for long periods of time suffered from diminishing marginal returns. There should be some form of up-scaling to accommodate these clients or they should be able to join other financial service providers in the formal sector in order to benefit fully from a participation in microfinance programmes.
Keywords: microfinance, asset building, poverty reduction, financial sustainability, Sub-Saharan Africa, Ghana