Factors that Influence Women Agro-Processors Credit Utilization in The Northern Region of Ghana

Access to credit for financing agro-processing enterprises has been one of the critical constraints facing small-scale women agro-processors in  developing countries. Microfinance institutions (MFIs) have been hailed for providing tailored-made financial products for such small-scale businesses.  However, the use of borrowed money from MFIs is critical in the improvement of the general well-being of women borrowers. This paper presents the  findings of a study that examined factors affecting credit utilization among women agro-processors in the Northern Region of Ghana. The theory  underpinning the study is the life cycle theory which suggests that there exists a relationship between productivity and some socioeconomic characteristics such as age. A descriptive survey design was used to gather data from 402 women agro-processors in two districts of the Northern Region  of Ghana. Descriptive and inferential statistics were employed in analyzing the data. Women agro-processors surveyed largely invest about (60%)  of their borrowed monies in their agro-processing businesses. They also invest almost (13%) in other businesses and in household consumption (15.4%).  About 12% of agro-processors borrowed for others. The study also found a significant relationship between women’s socio-economic characteristics such  as household size, religious background, location of respondents, household headship status of respondents, literacy, and their utilization of credit. It is  therefore recommended that MFIs should incorporate training on credit utilization and financial management as part of their social intermediation  activities.