ABSTRACT
The chapter assessed the impact of access on household livelihood diversification, asset accumulation patterns and welfare outcomes. In all three case scenarios, means were tested, and it was also tested whether significant differences were established or not. Qualitative data provided depth behind the numbers. Three-fifths of clients invested accessed microfinance in off-farm and/or non-farm activities, with the unintended consequence of stifling innovation in on-farm products by MFIs. Averagely, half of all client groups had engaged in crop and animal raising diversification within the 12-month period. Whereas clients of the formal and semi-formal MFIs significantly diversified into wage-earning jobs, those of the informal were significantly on-farm, and small ruminants dominated. These insured the highly unpredictable and irregular cash flows of the informal MFI clients. Previous exposure to debt and ownership of high-valued consumer goods was significantly associated with the formal and semi-formal MFI clients. Household welfare outcomes constituted a continuum ascending from the informal to the formal client groups. For the minority, microfinance was transformational, with livelihoods largely been stepped up or stepped out determined by market forces. Few fell down and out and missed out on the promise of microfinance. Yet, the majority were transitioning from hanging in to stepping up for both the market and household.
