The Role of Microfinance in Empowering Women in Addis Ababa
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Date
2007-07
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Addis Ababa University
Abstract
It is widely accepted that women are central to household well-being and national
economic development. However, the role of women is impeded because they generally
hold a low status in many developing countries. Owing to historical and cultural
disadvantages, women are also more vulnerable to poverty. In addition to being a human
rights issue, the prevailing condition of women calls for taking measures to empower
them. The empowerment of women is also the basis for transforming lives at the
household level and in the wider society. In this regard, the delivery of microfinance is
one of the approaches to the empowerment of women. This study has the objective of
assessing the impact of microfinance in the empowerment of women. It recognizes the
multidimensional nature of empowerment as a process involving personal, social,
economic and political dimensions.
The research was conducted at the Specialized Financial and Promotional Institution
(SFPI). The researcher used both qualitative and quantitative methods to obtain a reliable
data. Data were derived from a questionnaire survey of a sample of 373 women clients
of the SFPI. In addition, three focus group discussions were conducted involving 18
women while in-depth interviews were carried out with another 12.
The study establishes that improved access to microfinance has been able to empower
women economically. Although the results vary, the study indicated that the income and
saving levels of the majority of the clients have increased after the delivery of
microfinance. Encouraging results have also been shown in the enhancement of the
women s of self-confidence with respect to the capability to work on their own and
improve their lives. On the other hand, there is no indication of an enhancement in the
decision making power of women and in their political empowerment as reflected in
respect for their legal rights, ownership of household assets and holding of political
positions. In addition, the delivery of microfinance has failed to bring about changes in
their decision making at the household level.
The study recognizes the limits of the transformative capacities of microfinance and it
shows that financial empowerment does not necessarily lead to a transformation in
gender relationships which is a basis for the overall empowerment of women
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Gender Studies