Rural Women Breakout - Lisa Peterlechner, GIZ
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Transcript of Rural Women Breakout - Lisa Peterlechner, GIZ
Building Women-Focused Finance
#bwffconf
Building Women-Focused Finance: The Global-Local ExperienceLisa Peterlechner
GIZ
#bwffconf
Building Women-Focused Finance
#bwffconf1- Usage of financial services by rural women in Uganda
• Relatively low access to financial services:– Only 28% of Ugandans have access to formal financial services
• Rural areas disadvantaged compared to urban areas:– 38% of urban population use banks, compared to 15% of rural
• Women disadvantaged compared to men:– More men (31%) than women (26%) are formally served – More women (31%) than men (28%) feel financially excluded – Women in rural areas are 6.1% less likely to save than men
Women in rural areas are most disadvantaged
• Study in 8 GIZ partner Savings and Credit Cooperatives (SACCOs):- Women represent less than 30% of board, management and membership- Women who use financial services, often save more and repay better
Building Women-Focused Finance
#bwffconf2- Barriers for rural women
• Gender division of roles at family/ household level– Financial management is the responsibility of men– Women focus on production, men focus on marketing -> women have less income– Women work more hours a day and most of it from home
• Male domination and spousal interference– “It is better to have a wife who is illiterate and poor but manageable than one who is educated
and rich but difficult to manage”– Women are not allowed to open accounts or if they are, men control the accounts
• Women’s lack of property rights – Land is the number one asset in rural areas, women own only 7% of registered land
• Lack in education, low self-esteem– Perception that financial services are for the well educated and well-off– Idea that SACCOs / MFIs = loans = dangerous: “One woman failed to pay and they came and
took her baby’s bed sheets”.• Financial products, policies and procedures which do not take account of women
specific needs and challenges– “Women contribute a lot of income to the household but they are denied loans, because they
are regarded to be inferior and they do not have collateral.”– High entrance cost: relative to their income, the costs of opening an account equals 15% of
women’s monthly income, whereas it is only 8% for men.– Focus on business loans, whereas women have more diversified needs (education, health, a
variety of savings products, etc.)
Building Women-Focused Finance
#bwffconf
SACCO
Community
Training of savings groups
Media campaign
Support in comm. strategy
Gender training
Gender auditSACCO leaders are
sensitized on Gender
SACCO has and applies a Gender policy
Men are sensitized on
the benefits of women joining SACCOs; more
women are willing and able to join a SACCO
Men and women are targeted in mobilization
campaigns
Incr
ease
d fe
mal
e pa
rtici
patio
n in
SAC
COs
GIZ
FSD
Gen
der s
trat
egy
for S
ACCO
s2 – A holistic approach to increasing female participation
Gender sensitive product dev.
SACCO products are adapted to the needs of
men and women
Female leadership training
Women contribute more and better
Building Women-Focused Finance
#bwffconf
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3 – Focus on linkage bankingLinkage banking: Combining the convenience of informal financial services with the safety
and opportunities of formal financial services
The clients’ side:• Benefits of informal groups:
– Focus on saving, small transactions, no fees involved, groups are close by (responding to Gender division of roles at family/ household level)
– Social supervision, no need for collateral (responding to women’s lack of property rights)– Saving and lending with peers, in a modest setting, with simple and transparent procedures
(responding to lack in education, low self-esteem)– Participation in groups usually meets more acceptance with spouse (responding to male domination
and spousal interference)• Benefits of formal financial services:
– Savings need to be safe– Need for bigger loans, for more diversified financial services usually arises after some time
Benefits for financial institutions:– Access to a new client segment which is otherwise difficult to reach– Low transaction costs– Usually high savings– Qualified clients with a track record in saving and borrowing
Building Women-Focused Finance
#bwffconf
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Thank you for your attention