Contribution of microfinance in women empowerment. A case study of pro-femme/twese hamwe through Duterimbere microfinance institution
par Adeline Kayiranga
Lovely Professional University - Master of Commerce in Finance Specialization 2013
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.
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.
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.
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.
TABLE OF CONTENTS
LIST OF OBSERVATIONS xi
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
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
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
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
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
Table 10: Women may be economically self-sufficiency due to
microcredit without the men
Table 11: Socio-demographics variables such as education level,
age, marital and
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
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
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
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
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
Figure 2: Virtuous spirals
Figure 3: Linking Microfinance with Poverty Reduction
LIST OF OBSERVATIONS
AKRSP: Agha Khan Rural Support Program
CEDAW: Convention on the Elimination of All Forms of Discrimination Against
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
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.
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.
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
To determine the contribution of microfinance in women empowerment in Rwanda.