Adopt new strategies to increase women access to finance - experts

Government and other stakeholders should devising innovative strategies to strengthen women co-operatives by increasing their access to finance, experts have said. The move would also help reduce poverty levels and promote financial inclusion across the country. The experts were speaking during the annual research conference organised by the Institute of Policy Analysis and Research Rwanda (IPAR). During the conference, IPAR released a report, which indicated that 74 per cent of the female population in the country is not formally banked compared to 63.7 per cent for males. Emmanuel Munyemana, a senior researcher at IPAR, said there is an urgent need to sensitise, educate and link women to financial institutions so they can save and borrow money to fund income-generating activities. “Furthermore, financial literacy is needed at grassroot level if we are to reduce poverty levels among the masses,” he noted while presenting his research findings. He also urged government and credit institutions to encourage people to acquire loans to carry out business activities and not for consumption or fund luxuries. Speaking at the conference held under the theme, “Building on the Millennium Development Goals (MDGs) for developing countries to promote inclusive growth and economic transformation,” Dr. Claudine Uwera said discouraging consumption loans will help people save and invest in productive activities and hence accelerate the country’s economic growth. “Low access to finance by women can hinder achievement of the first MDG, and efforts to eradicate extreme poverty and hunger.” The 2012 census data indicate that women unemployment is double compared to that of men, Uwera added. According to Eugenia Kayitesi, the IPAR executive director, increasing access to finance by women boosts entrepreneurship, job-creation and inclusive growth. “And when women have access to finance, it will significantly reduce income inequality,” she added. “Therefore, we need to draw lessons from MDGs in order to know how sustainable development goals will be implemented in the future,” she said. Rwanda seeks to double access to formal financial services in the next three years to over 80 per cent. Figures from the central bank indicate that the country has made significant strides, doubling formal inclusion from 21 per cent to 42 per cent presently. The country reduced its total exclusion from 52 per cent to 28 per cent between 2008 and 2012.

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Adopt new strategies to increase women access to finance - experts