1. Introduction Heidi Friis Jakobsen Country Director of MAPLE Microdevelopment in Uganda (www.maplemicro.org)www.maplemicro.org Master’s of Science in International Business and Development, Copenhagen Business School Present: Master’s thesis Experience with empowerment and microfinance in Uganda

2. Thesis: Micro-finance and Empowerment of Women - in Uganda

3. Overview Locations - interviews Participants Who were they? Cultural setting Empowerment Outline of the framework Main findings of the thesis

4. Locations Kampala Mbale Lira Fort Portal 42 interviews Group Individual

5. Participants Microfinance Institutions (MFIs) Pride BRAC FINCA Faulu (Opportunity International) Savings groups (VSLAs, ROSCAs)

6. Participants Majority married (Nothern region: Widows, single mothers) Little education Majority illiterate Urban/rural areas Small scale businesses: agricultural produce, pigs, poultry, charcoal, fruits, vegetables, spare parts for cars, chemicals, second hand clothes and so on.

7. Cultural Setting I Aspects that can restrict women and limit their chances for being empowered: Traditionally women considered to be inferior and not of great importance: education, opinions, decision-making (regional differences!) Women have a greater work burden than men → hence their daily responsibilities can leave them overstretched

8. Cultural Setting II Domestic violence Sole providers for their families as they do not receive enough money from their husbands to sustain a proper way of living for themselves and her children. Limited access to resources (e.g. women not landowners)

9. Empowerment focus of this thesis: was on whether women, at a personal level, were able to redefine and extend what was possible for them to be and do in situations where they previously had been restricted.

10. Research Question To what extent does micro-finance enable empowerment of women in Uganda? Sarah Mosedale’s framework: Identify constraints to action with: power over, power within, and power with. Social values and norms. Identify how women’s agency had developed. Identify how women’s agency had changed constraints to action.

11. General Findings of the Study Micro-finance can enable empowerment of women, BUT: mainly for people in urban areas (MFIs) for people with certain level of business knowledge for groups that are not struggling with defaulting members nature of relationships with husbands and other family members depends on the women’s level of disempowerment

12. What can be done differently? Training to enhance women’s business skills, BUT: Vision of MFIs: to reach as many poor people with financial services as possible MFIs provide training but not business training Need for training in basic business and entrepreneurial skills Include husbands/family members? Different micro-finance design in agricultural setting savings groups (lack of capital, industry seasonal)

14. Heidi Friis Jakobsen Danish Forum for Microfinance 30th August 2011

15. for the alleviation of poverty through learning and entrepreneurship United States based organization currently operating in Uganda Provide tailored business skills education and entrepreneur- mentoring services to community groups – mainly savings and loan groups Financial and life skills education young people: enabling them to build the habits necessary to become self-sufficient and support their own families and communities in the future Agricultural training

16. Location Eastern and Northern Uganda: urban and rural areas

17. Community Groups Savings groups – Village Savings and Loans Associations (VSLAs) and Rotating Savings and Credit Association (ROSCAs) Work with mixed groups – men and women Women make up the vast majority of the group members (group set-up appeal and work better for women)

18. Business skills education: – separate business money and personal money, sell the right thing to the right kind of customer, customer service, use a business loan to your business, complimentary products, budgets etc. Financial and life skills education young people: – financial literacy (wants and needs, savings and budgeting), personal development (self-esteem, decision-making, peer-pressure..), entrepreneurship. Agricultural training: – animal keeping, how to plant, when to plan and what to plant, how to use compost etc.

19. General changes after training and group activities: – Increase in stock in businesses – Sell better quality → higher prices – Not use loans on consumption but invest in businesses – Higher profits – Afford health services – Pay school fees

20. Example Veronica, who is 42 years old Married with 5 kids Lives in Lira Sells: clothes, soap and beauty products Member of savings group and saves about 37 DKK a month After training: Has courage to take a loan Knows how to handle income and business costs – which makes her more financial stable → easier to pay for school fees.

21. Questions