Empowerment of Women in Rural Ethiopia: A Review of Two Microfinance Models

Microfinance institutions have long recognized that providing women with access to loans empowers them in a number of ways. However, different microfinance service delivery models have been tested in various socioeconomic and cultural circumstances with varying results. This article highlights two major models: Group Guarantee Lending and Community Managed Loan Funds. It gives an overview of the models themselves and explores the ways in which they contribute to women’s empowerment. The article uses microfinance in Ethiopia as a case study, drawing on practical observations as well as country-specific research.