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LOVELY PROFESSIONAL UNIVERSITY
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DEPARTMENT OF COMMERCE
Report of Research on:
«CONTRIBUTION OF MICROFINANCE IN WOMEN
EMPOWERMENT»
A Case Study: Pro-Femmes/ Twese Hamwe through
DUTERIMBERE Micro-Finance Institution
Submitted to Lovely Professional University
In partial fulfillment of the
Requirements for the award of Degree of
Master of Commerce in Finance Specialization Prepared by:
Adeline MUKAYIRANGA
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DECLARATION
I hereby declare that the study on «Contribution of
microfinance in women empowerment» a case study of Pro-Femmes/ Twese Hamwe
through Duterimbere Micro-Finances is my original work, that has not been to my
best knowledge submitted and presented to any university of higher learning for
a similar award, and that all sources I have used and quoted have been
acknowledged by complete references.
II
Signature
Date
Adeline Mukayiranga
I, Satendra Bhardwaj acknowledge that this research
project entitled «Contribution of microfinance in women empowerment:
A case study of Pro-Femmes/ Twese Hamwe through Duterimbere
Micro-Finances» is an original work of Mrs Adeline Mukayiranga and has
been done under my supervision.
III
Supervisor:SatendraBhardwaj
Date..............................................
Signature:
iv
DEDICATION
I dedicate this work to the Almighty God who enables us for
any commitment.
Special dedication to my parents, husband and children for
their unprecedented support through my life, and to all friends for their
devotion and courage that have led to the completion of my studies and this
research.
ACKNOWLEDGEMENTS
The final product of this research project is not the result
of the effort of one person but a combination of participation of different
parsons.
First and foremost I thank the Almighty God who has been
taking care of me and keeping me strong and done everything for my best.
My special thanks go to my husband, Kwizera Anicet and to my
children: Kwizera Sangwa Aldo and Kwizera Rwema Alida for their moral and
financial support along my education. Your love has made me what I am today.
My sincere gratitude goes to Mr Satendra Bhardwaj who
kindly accepted to supervise me and for his enrichment advices despite his
other duties.
I would like to thank so much Mr Manishaka Jean Bosco
Aboubacar. I will eternally remember your encouraging guidance and intellectual
capacity, which will surely always guide me in my further academic
endeavors.
I also wish to express and record my sincere appreciation to
the Lovely Professionally University (LPU) and Faculty of Management
administration in general, and especially to the teaching staff in the
department of Commerce, for the immense support accorded to me during my
courses. This was evidenced through material and moral support granted to
me.
I would like to thank all those who contributed in one or
another way to the accomplishment of this study.
I'm highly indebted to the Pro-Femmes/ Twese Hamwe for
contributing toward the successful completion of my research project. To the
Executive Secretary of Pro-Femmes/ Twese Hamwe, and to Mrs Suzanne Ruboneka and
to all staff of Pro-Femmes/ Twese Hamwe & Duterimbere MFI, I am
tremendously appreciative of the support you gave me.
It is not possible to thank all of you in person, as this may
not be sufficient or exhaustive in coverage, extent and depth.
However, special thanks go to my fellow friends who have been
together with me during my studies, and who managed to provide any kind of
support during this period.
V
Adeline Mukayiranga
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TABLE OF CONTENTS
DECLARATION ii
DEDICATION iv
ACKNOWLEDGEMENTS v
LIST OF OBSERVATIONS xi
ABSTRACT xii
CHAPTER ONE: INTRODUCTION 1
1.1 Background of the study 1
1.2 Statement of the problem 2
1.3 OBJECTIVES OF STUDY 2
1.3.1 General objective 2
1.3.2 Specific objectives 2
1.4 HYPOTHESES OF THE STUDY 3
1.4.1 General hypothesis 3
1.4.2 Specific hypotheses 3
1.5 DEFINITION 3
1.6 ROLE OF MICROFINANCE IN WOMEN EMPOWERMENT 4
1.7 Microfinance & empowerment 5
1.8 Scope of study 6
1.9 INTRODUCTION TO THE ORGANIZATION (Pro-Femmes/ Twese Hamwe)
6
1.10 HISTORICAL BACKGROUND OF PRO- FEMMES /TWESE HAMWE 8
ORGANISATIONS UMBRELLA 8
1.11 PRO -FEMMES / TWESE HAMWE'S VISION 8
VII
1.12 PRO- FEMMES / TWESE HAMWE'S MISSION 9
1.13 PRO -FEMMES/TWESE HAMWE'S OBJECTIVES 9
1.14 CONCERN OF DUTERIMBERE MFI 10
1.14.1Duterimbere objectives 10
CHAPTER TWO: REVIEW OF LITERATURE 13
2.1. INTRODUCTION 13
2.2 DEFINITION OF MICROFINANCE CONCEPTS 15
2.3 MICROFINANCE INSTITUTION 21
2.4 CHALLENGES FACED BY MICRIFINANCE INSTITUTIONS 21
2.5 MICROFINANCE AND WOMEN'S EMPOWERMENT: QUESTIONNING 22
`VIRTUOUS SPIRALS' 22
2.6 Theoretical links between Microfinance and Poverty 27
2.6.1Reduction/Analytical Framework 27
2.6.2 Poverty Reduction and Microfinance 27
2.6.3 Analytical Framework 30
CHAPTER THREE: RESEARCH METHODOLOGY 33
3.1. RESEARCH METHODOLOGY 33
3.2 CASE STUDY 33
3.3. AREA OF THE STUDY 33
3.4. POPULATION OF THE STUDY 34
3.5. SAMPLE SIZE 34
3.6 SAMPLE TECHNIQUE 35
3.7 CLASSIFICATION AND SOURCES OF DATA 35
3.8 DATA COLLECTION TECHNIQUE 36
3.9 QUESTIONNAIRE FOR CLIENTS 36
3.10 INTERVIEWS FOR KEY STAFF 36
3.11 DATA PROCESSING, ANALYSIS, AND INTERPRETATION 37
VIII
3.12 EDITING 37
3.13 TABULATION 37
3.14 LIMITATIONS OF THE STUDY 37
CHAPTER FOUR: PRESENTATION OF KEY FINDINGS AND DATA ANALYSIS
39
4.1. INTRODUCTION 39
4.2. IDENTIFICATION OF PARTICIPANTS 39
4.3. PRESENTATION OF RESULTS FROM QUESTIONNAIRES 42
4.4. DISCUSSION OF RESULTS 50
4.4.1. DISCUSSION OF RESULTS FROM QUESTIONNAIRES 50
4.4.2. DISCUSSION OF RESULTS FROM INTERVIEW 52
CHAPTER FIVE: CONCLUSION AND RECOMMANDATIONS 55
5.1. INTRODUCTION 55
5.2. CONCLUSION 55
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LIST OF TABLES
Table 1: Respondents numbers in the Districts
Table 2: Sample size in every district
Table3. Identification of respondents
Table 4: Women use savings and credit in economic activity for
their empowerment
Table 5: Women who benefit credit from Duterimbere IMF are
confined in range of
female low-income Activities
Table 6: Women economically-developed change gender role and
status within household
and community
Table 7: Microcredit given by Duterimbere IMF is limited
according to the beneficiary
Table 8: Microcredit provided by Duterimbere IMF is enough to
women empowering
Table 9: Women appreciate the short-term loan from Duterimbere
IMF for their
empowerment purpose
Table 10: Women may be economically self-sufficiency due to
microcredit without the men
support
Table 11: Socio-demographics variables such as education level,
age, marital and
professional status lead to success of microcredit in women
empowerment
Table 12: Business held by women are competitive with others
Table 13: Microcredit offered to women improves the family
standing
Table 14: Women empowerment involves the family and community
development
Table 15: Family economy may be based on the women empowerment
due to savings and
credit through microfinance
X
LIST OF GRAPHICS
Graphic 1: Identification of respondents
Graphic 2: Women use savings and credit in economic activity for
their empowerment
Graphic 3: Women who benefit credit from Duterimbere IMF are
confined in range of
female low-income Activities
Graphic 4: Women economically-developed change gender role and
status within
household and community
Graphic 5: Microcredit given by Duterimbere IMF is limited
according to the beneficiary
Graphic 6: Microcredit provided by Duterimbere IMF is enough to
women empowering
Graphic 7: Women appreciate the short-term loan from Duterimbere
IMF for their
empowerment purpose
Graphic 8: Women may be economically self-sufficiency due to
microcredit without the men support
Graphic 9: Socio-demographics variables such as education level,
age, marital and
Professional status lead to success of microcredit in women
empowerment Graphic 10: Business held by women are competitive with others
Graphic 11: Microcredit offered to women improves the family
standing
Graphic12: Women empowerment involves the family and community
development Graphic 13: Family economy may be based on the women empowerment
due to savings and credit through microfinance
LIST OF FIGURES
Figure 1: Framework of women's empowerment through microfinance
(Household
model)
Figure 2: Virtuous spirals
Figure 3: Linking Microfinance with Poverty Reduction
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LIST OF OBSERVATIONS
AKRSP: Agha Khan Rural Support Program
CEDAW: Convention on the Elimination of All
Forms of Discrimination Against
KFW: KreditanstaltfürWiederaufbau
LPU: Lovely Professionally University
MFI: Microfinance Institution
MIGEPROF: Ministry of Gender and Women
Promotion
NGO: Non government organization
OPP: Orangi Piolt Project
PTH: Pro-Femmes/ Twese Hamwe
RCA: Rwanda Cooperative Agency
RWAMREC: Rwanda Men's Resource Center
SBP: State Bank of Pakistan
UNFPA: United Nations Population Fund
UNIFEM: United Nations Development Fund for
Women
UNSCR1325: UN Security Council Resolution on
Women 1325
XII
ABSTRACT
In a male dominated society, women have always been
underestimated and discriminated in all spheres of life be it their family and
social life or their economic and political life. Moreover, the traditional
duties of managing households create hindrances in their social and economic
empowerment. Over the years various efforts have been made by many Government
and Non Government organizations to promote women empowerment in general and
especially in rural areas. One such effort is the microfinance intervention.
Many leading public and private sector banks are offering schemes exclusively
designed for women to set up their own ventures. Even the unorganized sector
has been heading into microfinance movement. The present paper is an attempt to
study the role of microfinance intervention in promoting women empowerment in
Rwanda through Pro-Femmes/ Twese Hamwe and other institutions. The objective is
to analyze the use of micro financial services by the women clients and access
their level of satisfaction with regards to these services.
After conducting this research the following results were
obtained:
Microfinance institutions have contributed to the improvement
of the economic and social conditions of the population and women in particular
by their policy of promotion of the saving and credit which helps this
population to carry out income generating activities via the individual
projects and groups of solidarity.
In general, this study found that microfinance institutions
contribute to rapid socio-economic growth by leveraging neglected sectors of
the economy through providing them financial assistance and helping them to
finance their own projects and increase their income.
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CHAPTER ONE: INTRODUCTION
1.1 Background of the study
Rwanda is among the developing countries still characterized
by the fact that there is over dependence on agricultural activities in rural
areas, low savings, low income groups and the economy highly depending on
agricultural activities.
Globally, women disproportionately represent 70% of the
world's 1.3 billion population who live on less than one dollar per day.
In Rwanda, women comprise (54%) of 11 million of the entire
population. However, most of these Rwandan women are illiterate and this limits
their employment opportunities and financial ability to take care of their
families of which 37% of Rwandan household are managed by women. Moreover, 70%
of the Rwandans live below the poverty line yet a large proportion of these are
women.
Women have been the most underprivileged and discriminated
strata of the society not only in Rwanda but all over the world. Inspire of all
Government and Non-Governments' efforts, they have been highly inactive clients
of the financial sector. In the recent times, microfinance has been emerging as
a powerful instrument for empowering women particularly; the women that have
little financial ability. Apart from the informal sector of finance, the formal
and semi formal sectors like commercial banks, NGOs etc. are taking much
interest in providing microfinance services to women in order to promote them.
Women are also participating in the microfinance movement by availing the
microfinance services being provided by the various financial channels.
Women empowerment is one of the most important issues that
have been in the focus of various policies and programs initiated by the
Government and the non-government organizations. Microfinance is one such
effort that has been emerging as a powerful tool of women empowerment. It has
been observed through the available literature that most of the studies related
to microfinance have been carried out in the all province regions of the
country (Rwanda) particularly and worldwide in general. The present study aims
to fill in the gap in the available literature. It is a modest attempt to
analyze the role of microfinance in women empowerment and the satisfaction
level of the women towards microfinance services.
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1.2 Statement of the problem
After the genocide of 1994, women in Rwanda took enormous
responsibilities that made it difficult for women to be able to support
themselves in absence of their spouses. This explain how women are vulnerable
to poverty especially those women heading the family.
In general, Rwanda women make up the majority of the low
income earners, unorganized informal sector of the economy and bigger number of
them are windows left behind by the 1994 genocide tragedy, others are
illiterate and have been marginalized by poverty and negative cultural
practices.
Accessing loan is the major constraint on women's ability to
earn income since most traditional financial systems require physical
collateral worth more than the amount of loan requested. The poor women find it
difficult to generate significant income from such loan because interest rates
are high. In addition, due to high rate of illiteracy, women have always been
facing unemployment problem compared to men. Providing the poor women with
financial services boost their income and productivity, thereby reducing
poverty.
The microfinance has been developed to fill these gaps, with
increasing assistance from the various financial institutions and other donors,
microfinance service is emerging as a powerful tool to reduce poverty and
improve access to financial services for the poor women of Rwanda.
It is against this background that the researcher intends to
carry out a study in order to analyze the outreach and impact of microfinance
on the poor women of Rwanda. The findings will be drawn from an in-depth
analysis of data obtained from microcredit issued to women beneficiaries.
1.3 OBJECTIVES OF STUDY
1.3.1 General objective
To determine the contribution of microfinance in women
empowerment in Rwanda.
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