AFRICA DEVELOPMENT AND RESOURCES RESEARCH INSTITUTE (ADRRI) JOURNAL E-ISSN: 2343-6662 VOL. 29, NO. 1(6), OCTOBER, 2020-DECEMBER, 2020 PUBLISHED BY AFRICA DEVELOPMENT AND RESOURCES RESEARCH INSTITUTE 30 AFRICA DEVELOPMENT AND RESOURCES RESEARCH INSTITUTE (ADRRI) JOURNAL ADRRI JOURNALS (www.adrri.org) E-ISSN: 2343-6662 VOL. 29, No. 1 (6), October, 2020-December, 2020 The Nexus between Microfinance and Poverty Reduction in Rural Communities of Hohoe Municipality George Yao Kafu 1 , Isaac K. Arthur and Frank Jerome Glago 1 Social Sciences Department, Peki College of Education, P.O. Box 14 Peki. Email: gykafu@yahoo.com 1 Department of Geography& Resource Development, University of Ghana Box 59 Accra. Email: ikartur@ug.edu.gh 3 Social Sciences Department, Akatsi College of Education, PMB Akatsi. Email: frankjerome96@gmail.com 1 Correspondence: gykafu@yahoo.com Available Online: 31 st December, 2020 URL: https://www.journals.adrri.org/ Abstract There is existence of spatial inequality in development between rural and urban areas due to lack of economic growth and effective policies for rural development. To investigate the potency of microfinance in poverty reduction, the study employed economic and social variables as benchmarks for measuring the impact of microfinance. A cross-sectional survey was used to assess the experiences of micro-finance activities on beneficiaries and loan arrangement accessibility. The study revealed that Microfinance Institutions have not developed appropriate strategies that target rural agricultural households. In addition, services delivered are not cost effective to enable even the poorest of the poor to access credit. Hence inferring from the mean rating, microfinance has not brought any significant difference in the economic well-being of beneficiaries because the monthly income of both beneficiaries and non- beneficiaries are the same. Keywords: microfinance, poverty alleviation, agricultural- households [Cite article as: Kafu, G. Y., Arthur, I. K. and Glago, F. J. (2020). The Nexus between Microfinance and Poverty Reduction in Rural Communities of Hohoe Municipality. Africa Development and Resources Research Institute Journal, Ghana: Vol. 29, No. 1(6), Pp. 30-47, E-ISSN: 2343-6662, 31 st December, 2020.] Received: (September 11, 2020) Accepted: (December 31, 2020)