Financial inclusion: How FINCA is empowering women entrepreneurs

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In rural Uganda, financial independence remains a distant dream for many women. This is because they still face significant barriers such as limited access to financial services, low financial literacy, and societal structures that often prioritize men’s economic activities.

According to Primrose Kobusingye, Head of Marketing and Communications at FINCA Uganda, when women are empowered with the right tools and resources, their potential to contribute to economic growth becomes limitlessly.

“The Institution provides women with financial literacy training, flexible savings accounts, and micro-loans designed to suit their unique needs. These resources are helping women improve their financial knowledge, save effectively, and access credit to grow their businesses, this is what all women need across the country,” Kobusingye highlighted.

For instance, at inception the institution started with a group of about 40 women customers. It has since then assisted over 192,623 low-income women by teaching them to save and adopt a savings mindset. Women like Sarah Kamya, a small-scale farmer from Nakaseke, have benefited from this initiative.

Kamya had always dreamed of expanding her farm but struggled with unpredictable income and a lack of financial tools. Thanks to the bank, she now has access to low-cost savings accounts and micro-loans, which have enabled her to grow her business and improve her financial management skills.

“With FINCA’s support, I can now save and access loans whenever I need to invest in my farm. It has helped me grow my business, and I now feel confident managing my finances,” Kamya noted.

Anne Kirya, a businesswoman from Bugembe in Jinja, shares a similar success story. Through FINCA’s micro-loans, Kirya was able to expand her shop, growing her business and financial security. Kirya’s success has also inspired other women in her community to pursue economic empowerment.

Recently, speaking at the Women Economic Empowerment (WEE) Forum 2024, Olive Lumonya Birungi, Board Chairperson of FINCA Uganda, emphasized that the institution is committed to helping women escape poverty and achieve financial empowerment.

“Through our financial solutions and tailored products, 68% of our micro-loan clients are women, with 80% of them operating micro-businesses or working as smallholder farmers. Women make up 38% of our total customer base.

These numbers drive us to continuously innovate and create pathways for women to overcome challenges like lack of collateral, escape poverty, and build lasting solutions for economic empowerment,” Lumonya explained.

According to recent statistics from Finscope Uganda 2018, women operating in formal financial institutions account for 58%. Yet, when examining informal financial sectors, women make up an even larger portion, indicating that they are heavily involved in informal savings groups, village banking, and other community-based financial services. However, these sectors are often less structured, making it harder for women to access larger loans or capital to grow their businesses.

“Access to capital through microfinance institutions like FINCA Uganda allows women in rural areas to start or grow small businesses. These manageable loans empower women to demonstrate their capacity as reliable borrowers and capable business owners, changing stereotypes about female entrepreneurship.”