This paper uses field survey data to assess the mechanism through which microfinance can\nreduce poverty among rural households in the Upper East Region of Ghana. Data was\ncollected from 500 women engaged in agro processing of whom 250 were beneficiaries of\nmicrofinance. The results from the Ordinary Least Square estimation reveal that an increase\nin technical efficiency of microfinance beneficiary has a positive impact on poverty reduction.\nIn this regard, microfinance institutions are edged to incorporate training and business\nadvisory services as part of their service delivery so as to make their clients more technically\nefficient.
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