Access to Finance:
Challenges Facing Rural Women in
Sub-Saharan Africa
European Microfinance Platform (e-MFP)
European Microfinance Week 2009
November 24th – November 27th
Presenter: Elizabeth Eilor, Gender Consultant
Women’s World Banking
Microfinance and Gender in Sub-Saharan Africa
The Gender Context
Persistent gender inequalities in the areas of:
• Education – high literacy rates
• Agriculture – proceeds from sale of outputs not benefitting
women
• Workload – juggling numerous responsibilities (in and out of
home)
• Resources – lack of access to productive resources, such as
land, seeds, fertilizers, farm machinery
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Copyright 2009 Women’s World Banking
Women’s World Banking
Microfinance and Gender in Sub-Saharan Africa
The Gender Context
Distribution of the labor force by gender and occupational category
(Example: Rwanda)
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Copyright 2009 Women’s World Banking
Women’s World Banking
Microfinance and Gender in Sub-Saharan Africa
The Gender Context
Workload Distribution - Heavy workload requires juggling
business with family priorities, which is challenging
(Example: Tanzania)
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Copyright 2009 Women’s World Banking
Women’s World Banking
Microfinance and Gender in Sub-Saharan Africa
The Gender Context
Role of Women in the Economic Arena
Agriculture
(Example: Tanzania)
Un-paid Work
Example: (Uganda)
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Copyright 2009 Women’s World Banking
Women’s World Banking
Microfinance and Gender in Sub-Saharan Africa
The Gender Context
Banking Profile of Women and Men
(Example: Tanzania)
This is a common situation in sub-Saharan communities.
Copyright 2009 Women’s World Banking
Women’s World Banking
Gender Research in Western Rural Uganda
The
Research
Objectives

Understand current usage and satisfaction with UFT’s
existing rural loan product, including product and service
delivery mechanisms.

Understand which attributes of a rural loan are most
important to clients in order to refine the existing loan
product.

Assess the broader competitive environment from the
clients’ perspective—informal and formal finance
mechanisms.
Understand the perception of UFT’s lending processes,
staff interaction, and branch experience.

GOAL = Identify approaches to ensure that low-income women in rural areas obtain
access to and have increased control over the use of microcredit loans.
Copyright 2009 Women’s World Banking
Women’s World Banking
Gender Research in Western Rural Uganda
The
Research
Methodology

Integral analysis of all income-generating activities within
the household unit—including immediate and extended
family.

Evaluation of the intra-household dynamics, family
composition and roles and responsibilities of men and
women, to identify key drivers and/or barriers to
household income growth (farm and non-farm).

Assessment of the unique needs and challenges faced
by low-income women entrepreneurs in rural
households.
Deeper understanding of the market
Copyright 2009 Women’s World Banking
Women’s World Banking
Gender Research in Western Rural Uganda
Women Customers
The likelihood that a woman living in a rural household in Western Uganda is involved
in an independent income-generating activity depends in part on her marital status and
the role she plays in the family’s business activity (namely, the family farm).
Marital Status
Unmarried – widow,
separated
Married
Independent business, often
forced out of economic
necessity
Supplemental
Contributor to family business,
much less likely to have her
own income-generating activity
Farm as Percentage of
Total Family Income
Primary
If the husband has another business, the
wife plays a more significant supervisory
role on the farm, leaving her less free time
to engage in other activities.
If the husband runs the farm full-time, the
wife plays the role of a worker, having less
authority but she may have time to manage
other activities.
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Copyright 2009 Women’s World Banking
Women’s World Banking
Gender Research in Western Rural Uganda
Men Customers
All of the men in our research population were married heads of households, and most
of them had medium-sized farms, which for the purposes of the research was defined
as having up to 50 hectares of cultivated matoke or 25 cattle for dairy. Many of the men
interviewed had additional income-generating activities, both on and off the farm.
Other Farming Activities (sample)
• animals – pigs, goats, chickens, beef cattle
• other crops – pineapples, cassava, beans, maize
• nursery (trees)
Non-Farming Activities (sample)
• home production of goods (makes chairs)
• retail shops (cellphones)
• salaried worker (accountant, civil engineer)
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Copyright 2009 Women’s World Banking
Women’s World Banking
Gender Research in Western Rural Uganda
Theme
Roles and
responsibilities of men
and women in the
household
Access and control
over financial
resources
Land ownership
Mobility and social
networks
Findings
Traditional gender roles are prevalent, regardless
of level of education and/or income
man = head of household, financial provider,
decision maker
woman = homemaker, helper, increasingly expected
to contribute financially.
In most households, men are the final decisionmakers on financial and business matters. Women
are usually able to control income (if available) from
smaller businesses.
Land and land title are for the most part passed
down to men from their fathers, and are the means
by which a majority of men are able to start their own
farms.
Men take responsibility for activities that require
mobility outside the home. Women are expected to
work within the household, movement outside is
limited (primarily for religious services).
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Implications
Many women will
require credit
products suitable for
income-generating
rather than growthoriented businesses
Loan guarantees /
collateral should be
commensurate with
the size of the loan
(e.g., small loans
should not require
land title)
Marketing and
outreach must reach
both men AND
women customers
Copyright 2009 Women’s World Banking
Women’s World Banking
Gender Research in Western Rural Uganda
The Way Forward—Changing Mindsets
• Align the institution around the value and importance of targeting low-income women
in rural areas as a unique customer segment
• Build the internal capacity of the institution’s staff to effectively serve women
•
Develop gender-responsive products and services
•
Conduct gender-responsive training of staff, particularly those that have regular customer
interactions (loan officers, tellers, etc.) on how to better serve women customers
•
Develop marketing, branding and customer care initiatives that are designed to empower
and inspire women customers by building their knowledge and confidence levels
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Copyright 2009 Women’s World Banking
Women’s World Banking
Gender Research in Western Rural Uganda
The Way Forward—Changing Mindsets
• Complement loans with business and financial management training for women
• Build the productive capacities of women in sub-Saharan Africa so as to enable them
to build their capital base and profit
• Increase policy advocacy for gender-related issues in microfinance
• Develop a women’s banking option at the regional and/or country level
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Copyright 2009 Women’s World Banking
Women’s World Banking
Gender Research in Western Rural Uganda
THANK YOU!
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Copyright 2009 Women’s World Banking