This chapter examines the role of microfinance in developing countries, particularly Ghana and Nigeria. The chapter begins with an overview of the link between microfinance, poverty and women empowerment in the chapter introduction. The background to the chapter setting out the main difference between microfinance and microcredit is provided next. The role of microfinance in contemporary development finance is then discussed. In this context, existing literature on the role of microfinance in reducing poverty, women empowerment, microenterprise development and economic growth is extensively reviewed. Key solutions and recommendations are then presented next, followed by future research direction and the chapter conclusion.