The study aims at testing the Ghana Microfinance Policy set up to support the vulnerable
through access to credit. We resort to the Blinder-Oaxaca decomposition to determine if
there is positive discrimination in favor of women and young entrepreneurs in the rationing
behavior of the microfinance companies. This is what we should expect if the policy is
effective. Our results show that even after controlling for a large number of borrower
characteristics, microfinance type and credit worthiness variables, there is positive
discrimination that favors female and young entrepreneurs as this discrimination is largely
determined by the differential treatment these groups receive in respect of men and older
borrowers from microfinance institutions. Our results show that the Government microfinance
is the most severe in the rationing behavior towards the discriminating groups.