About 70 percent of money lent out by microfinance institutions in Uganda went to women entrepreneurs in 2023. This shows the high demand for credit by women but also reflects the challenges women face in accessing credit.
Quoting figures from the regulatory bodies, Sanne Williams, Team Leader, Green Transition and Private Sector at the European Union Delegation, says while this has helped women around access to credit challenges, it exacerbates the high cost of doing business.
She was speaking at the second WEEI (Women Economic Empowerment Initiative) Forum, an initiative of the Uganda Bankers Association, UBA, under the theme: Accelerating Female Leadership for Gender Inclusive Financial Services.
Williams says the lack of property for collateral, and the complex land tenure systems, make it hard for women to access finance from cheaper and more formal credit from sources like commercial banks.
//Cue in: “In the year…
Cue out:…the other one.”//
These according to her, have led to mixed fortunes in the bid by both Uganda and the wider global bid to create parity between the genders, calling for a review of the efforts.
Her views are not only on access to finance but also on the reward for work done, which is seemingly skewed against women. She wonders why in many areas, women are paid less than their male counterparts even when doing similar duties, a situation that is still a global subject.
However, she says while the method of allocating quotas to female representation is commendable, the appointments should be on merit based on skill and ability.
//Cue in: “We need women…
Cue out:…what they deserve.”//
The fear of regression or slowdown and in some parts loss of the achievements gained so far is also related to the push for numbers while not focusing much on their ability.
In Uganda, laws for the appointment of boards of statutory bodies provide for a minimum of one-third of the members to be women, a similar situation with political representations like parliament and local councils.
However, Anne Juuko, a top banking executive says with the changing business environment, the “movement to parity” is regressing.
Juuko is the Regional Head of Global Markets in the group's Eastern African region, covering South Sudan, the Democratic Republic of the Congo, Uganda, Kenya, Tanzania, Malawi and Zambia.
She called for efforts to bridge the skills gap between the genders so that developments like Environmental, Social and Governance (ESG) issues, and information technology, among others, especially in banking will not push women out.
//Cue in: “The journey to…
Cue out:…for a regression.”//
The WEEI initiative is aimed at encouraging the professional growth of women to ensure that the gender gaps in leadership in all sectors are not tilted against women.
In 2023, UBA launched the initiative as one of the key pillars of its ESG strategy, which will serve as a focal point for addressing “the myriad of issues that hinder the progress of women in the banking/financial sector” as well as those who venture into entrepreneurship.
Key strategies include facilitating networking and partnership opportunities that support women's advancement in finance, advocating for policies and practices that enhance women's participation and leadership in the financial sector and fostering research and innovation in gender-inclusive financial services and products.
Sarah Arapta, the Association Chairperson says this came after they realised that women in leadership positions especially in the financial sector were not progressing up the ladder at the desirable pace.
//Cue in: “At a foundational level…
Cue out:…in the sector.”//
USAID Uganda Mission Director, Daniele Nyirandutiye was also of the view that even where there would be resources available for all, the implementers find it hard to trust women to succeed.
She gave an example of lenders not being comfortable with lending to women, to the extent that some do not even listen to them before deciding whether to give the credit or not, which, in her view, creates a very unfair playing field.
//Cue in: “Women entrepreneurs shouldn’t …
Cue out:…in the marketplace.”//
However, Nkosilathi Moyo, the Chief Executive Officer at BRAC Uganda Bank, said the slow progress of women up the leadership or managerial ladder should be partly blamed on senior women leaders.
“Unfortunately, those who have benefitted from this women's emancipation leadership seem not to favour the growth of those in lower positions,” he said, adding that such try to block the opportunities for their counterparts at the lower levels.
