Rural finance should target women
Dec 07, 2009
<b>By Nathan Were</b><br><br>The United Nations Expert Group on Women and Finance estimates that 70% of the world’s populations living on less than a dollar a day are women. Despite the numerous approaches to address household income and improve socie
By Nathan Were
The United Nations Expert Group on Women and Finance estimates that 70% of the world’s populations living on less than a dollar a day are women. Despite the numerous approaches to address household income and improve society well-being, poverty levels remain high and steadily rising.
One area that has great potential to deliver on household poverty is microfinance. Microfinance programmes seek to provide affordable credit and savings services to the poor, especially women.
Considering that most poor people are women, efforts to reduce poverty in Uganda should begin at house-hold level and should target women.
Provision of small size credit facilities to women has a strong multiplier effect and greatly improves their welfare and that of their children.
As women access credit and start small businesses, the proceeds from the different income generating activities are spent on household welfare such health and treatment for children, nutrition, feeding and education.
Putting working capital in the hands of women has a strong impact on their social empowerment and this improves their decision making power at the household level. As they grow financially, women’s ability to participate in household decisions becomes imminent. Women are able to participate in decisions regarding acquisition and disposal of family assets, family planning and gain confidence to speak and act against different injustices like domestic violence.
Research has proved that women are better loan payers than men. Statistics from microfinance institutions in Uganda indicate that the institutions recover over 95 % of the loans disbursed to women.
The good repayment record can in part be attributed to financial discipline, lack of collateral security for loans and better management of their small business enterprises.
Considering that a number of women do not own assets to mortgage with financial institutions, they honour their loan contracts in order to sustain a good relationship that guarantees future loans.
It may be vital that we move towards establishing financial institutions that target women if meaningful results on household poverty are to be realised.
The writer works with the Microfinance Support Centre
The United Nations Expert Group on Women and Finance estimates that 70% of the world’s populations living on less than a dollar a day are women. Despite the numerous approaches to address household income and improve society well-being, poverty levels remain high and steadily rising.
One area that has great potential to deliver on household poverty is microfinance. Microfinance programmes seek to provide affordable credit and savings services to the poor, especially women.
Considering that most poor people are women, efforts to reduce poverty in Uganda should begin at house-hold level and should target women.
Provision of small size credit facilities to women has a strong multiplier effect and greatly improves their welfare and that of their children.
As women access credit and start small businesses, the proceeds from the different income generating activities are spent on household welfare such health and treatment for children, nutrition, feeding and education.
Putting working capital in the hands of women has a strong impact on their social empowerment and this improves their decision making power at the household level. As they grow financially, women’s ability to participate in household decisions becomes imminent. Women are able to participate in decisions regarding acquisition and disposal of family assets, family planning and gain confidence to speak and act against different injustices like domestic violence.
Research has proved that women are better loan payers than men. Statistics from microfinance institutions in Uganda indicate that the institutions recover over 95 % of the loans disbursed to women.
The good repayment record can in part be attributed to financial discipline, lack of collateral security for loans and better management of their small business enterprises.
Considering that a number of women do not own assets to mortgage with financial institutions, they honour their loan contracts in order to sustain a good relationship that guarantees future loans.
It may be vital that we move towards establishing financial institutions that target women if meaningful results on household poverty are to be realised.
The writer works with the Microfinance Support Centre