Businesswomen want women-only financial institution to shore up gender-related interest

The UN Womencountry representative, Clara Anyangwe, has challenged authorities in the country to consider establishing a women-only financial institution. Speaking on promoting women and economy, Anyangwe said such an institution would cater for the investment needs of women who find it difficult to access bank services. “The establishment of a women’s bank or a similar institution that mainly caters for financial services of businesswomen can contribute immensely toward promoting women entrepreneurs,” she said. Anyangwe’s remarks, last week, were in response to challenges highlighted from the advocacy dialogue organised by the Chamber of Women Entrepreneurs in partnership with UN Women in Kigali earlier this month. The two-day women meeting brought together more than 300 local businesswomen in micro, small, medium and big businesses to deliberate on business-related challenges they face. The meeting highlighted limited access to finance and inadequate business skills among the challenges hindering the progress of women in business. “I know of something similar [women’s bank] in Nigeria and it has worked, and I am sure that with the goodwill of government, Rwanda can have a similar successful institution to push for women’s interests, thus leading to women economic empowerment,” Anyangwe said. Other challenges cited include low capacities of microfinance institutions to lend, high interest rates and limited capacity of women to prepare bankable projects. Theresa Dusabe, the vice-chairperson of Women Entrepreneurs, said there is need to establish a bank that entirely serves the interests of women entrepreneurs. She urged women to engage business advisors spread across the country to help them understand the private sector before they can engage in businesses. “Businesswomen should engage experts who can advise and educate them on various ways through which they can set up successful businesses,” she said. “We are planning to create an advocacy service in the Chamber of Women Entrepreneurs that will help push for faster bank services. We are currently in discussions with banks to establish women-tailored products as we wait for other favourable terms to facilitate economic empowerment for women; a women’s bank would be a solution perhaps.” Women tipped Daniel Nkubito, the public-private partnership dialogue specialist at Rwanda Development Board (RDB), said there is need for women entrepreneurs to first own their business project proposals, and conduct thorough market research for sustainable business projects. “BDF would give 75 per cent guarantee to women entrepreneurs with good business proposals, but until someone is able to own the business idea, operationalise it and be able to have ‘Plan B’ in terms of diversification, they will not last long in business,” he said. Nkubito added that there should be collaboration between BDF and banks to ease the issues of collateral and limited access to finance. Innocent Bulindi, the chief executive of BDF, said even though his institution has been criticised for not interfacing with banks to enable access to loans, a lot has been done to ensure that women entrepreneurs have access to startup capital. “We are trying to fix these issues but mainly encouraging banks to take a risk and we take the cover of that risk; that’s our role,” he said. “In addition to providing guarantees, we have also partnered with government to provide grants to reduce the burden of high interest rates. About 4,000 women have been supported since BDF begun.” Bulindi said BDF has reached understanding with all the 416 SACCOs in the country, plus other financial institutions, totaling to about 490, now willing to collaborate with the Fund in providing start-up to entrepreneurs.

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Businesswomen want women-only financial institution to shore up gender-related interest