An assessment of the outreach of microfinance Institutions to Rural Women in Zambia
Date
2014
Authors
Kalasa, Chanda M.
Journal Title
Journal ISSN
Volume Title
Publisher
University of Zambia
Abstract
The objective of this study was to assess the outreach of microfinance institutions to rural women
in Zambia in terms of, services provided, number of female and male clients, and availability of
women tailored product designs and programme approaches. The findings can not only be used by
microfinance institutions to give valuable business and social information to improve outreach and
service to women but it can also give government an insight leading to the building of a gender
perspective into agricultural policies and projects The study assessed six (6) of major microfinance
institutions providing services on the rural market. Key informant interviews at each of the
institutions were carried out using a semi-structured interview guide.
Findings revealed that a large proportion of the rural population still remains to be served as none
of the MFIs operated in Luapula and Muchinga provinces. Most of the institutions have taken
affirmative action on lending to more women because they are generally poorer than men and more
vulnerable. Results indicated that 63.5% of women were being served compared to 34.5% of men.
However, despite the yearly increase in total client numbers, the proportion of women clients
decreased, this can be attributed to the MFIs search for better financial returns. A l l of the
respondent MFIs did not require the signature of a man for a woman to be able to apply for a loan.
The study revealed that group loans were popular amongst women firstly because there is no
collateral involved, and secondly because it makes them feel more secure in case of default. None
of the reviewed institutions offered women tailored products or programme approaches, which is
necessary in order to efficiently serve women.
Based on the research findings it is recommended that the proven business case for targeting
female borrowers must be emphasized, while at the same time strengthening MFI strategies for
reaching women. In addition, MFIs should tailor product specifications, such as loan amounts and
repayment schedules to cater for the diverse needs of women clients. Women's groups should also
be utilized to promote and strengthen women's networks and not merely as a means of lowering
costs.
Description
Student Project Report
Keywords
Rural women-Zambia , Agricultural credit-Zambia