The study investigated the impact of microfinance on household welfare in Botswana using
a nationally representative sample of 503 households and an econometric model adapted
from Coleman (1999). The results suggested that microfinance had no significant effect
on household welfare, which is consistent with Okurut and Bategeka (2006); Banerjee et
al (2013); Coleman (1999). Household welfare is positively and significantly influenced by
education level, household assets and being in paid employment in the public/private sectors.
The policy implication is that government should continue to explore improvements in the
quality of education and creation of employment opportunities in the public/private sectors
to improve household welfare in Botswana.However, women’s access to microfinance has
led to their empowerment through participation in household expenditure decisions making;
being respected by family members and the community; and participation in local leadership
activities which addresses the strategic needs of women.