Microfinance contributes to women's empowerment in Rwanda through organizations like Profemmes Twese Hamwe (PTH) and microfinance institutions like Duterimbere. Duterimbere provides credit to empower unemployed women by enabling them to start small businesses. While microcredit has increased women's economic role and decision making, the study found it has not been enough to fully empower women. Challenges include limited business knowledge, education, and loan amounts. Recommendations include expanding services to reach more impoverished groups and improving training programs to better meet clients' needs.

1. CONTRIBUTION OF MICROFINANCE IN WOMEN
EMPOWERMENT
A Case Study: Profemmes Twese hamwe through
DUTERIMBERE Institution Micro- Finance
BY Adeline

2. INTRODUCTION
 Globally, women disproportionately represent 70% of the world and 1.3 billion
population who live on less than one dollar per day.
 In Rwanda, women constituting 54% of the 11,3 million of entire population
 However, most of these Rwandan women are illiterate and 70% of Rwandan live below
the poverty line yet a large proportion of these are women
 The Rwandan women make up the majority of the lowery paid workforce especially in
unorganized informal sector of the country’s economic
 The poor find it difficult to generate significant income from such loan because interest
rates are high
 Rwandan women have always been facing unemployment problem compared to men

3. Cont’s
 Normally, providing the poor women financial services increases their income and
productivity and reducing poverty
 That is why microfinance services have been developed to fill these gaps, with increasing
assistance from the various financial institutions and other donors.
 Microfinance services is emerging as a powerful tool to reduce poverty and improve
access to financial services for the poor women in world wide in general and in Rwanda
especially
 Economic power means access to income, assets, food, markets and decision-making
power in the economic activities.

4. Cont’s
 Social power means access to certain bases of individual production such as financial
resources, information, knowledge, skills and participation in social organizations.
 Psychological power means the individual's sense of potency, which is demonstrated in
self-confident behavior and self esteem.
 According of the Lowlands (1995) describe it as “a process whereby women become able
to organize themselves to increase their own self-reliance, to assert their independent
right to make choices and to control resources which will assist in challenging and
eliminating their own subordination

5. Concern of PTH Organization
 Pro-Femmes Twese Hamwe is an Umbrella Organization that promotes gender, peace
and development through advocacy, economic empowerment, and equal participation
of women and men in the development process and fight gender based violence for a
better Rwandan society.
 It formed on 18th October 1992, by 13 Rwandan Women Associations, today Profemmes
Twese Hamwe is composed of 58 member associations including Rwanda Men’s
Resource Center, a men’s Organization (RWAMREC) .

6. PTH Objectives
 To combine efforts, work for change so as to eradicate all forms of discrimination
and violence towards women;
 To be a consultation and a reflection framework on success strategies on mission of
member associations committed to the promotion of peace, women’s social,
economic, cultural and legal status;
 To facilitate exchanges between various member organisations and to promote
partnership with organisations or institutions working for women promotion.

7. Concern of Duterimbere MFI
 It is microfinance institution which receives the economies of usual customers served by
banking system and those who don’t have sufficient guaranties to offer in order to
ensure the refunding of the authorized credit.
 It was created on June 15th 1997, the idea of creation of this institution come from the
non-profit making which in the achievement of its mission of promotion of the female
entrepreneurial in Rwanda
 Another , Duterimbere MFI had initiated a program of saving and credit in Rwanda.
 The Managing Director of Duterimbere, Delphin Ngamije, said his institution will
provide credit worth Rwf4 billion by the end of this year, up from Rwf2.5 billion last year
that was loaned to a total of 53,500 customers, the women have 70% of clients
 Last year, Duterimbere made a net profit of Rwf116 million and is targeting a total of
Rwf200 million as proceeds this year, which signals the recovery of MFIs after a period
of poor business practices.

8. Duterimbere objectives
 To aim at the improvement of economic and social conditions of its members, in
particularly the women
 To provide the financial services (Saving and credit) to the population with low and to
the women in particularly
 To help the women to carry out the income activities via individual projects and the
groups of solidarity
 To promote the agriculture of saving and economic, social education and cooperatives
of its members.

9. OBJECTIVES OF STUDY
 General objectives
 To determine the contribution of microfinance in women empowerment in Rwanda.
 Specific objectives
 To identify various determinants of women empowerment.
 To find out the impact of microcredit in women development/promotion.
 To analyze the role of microfinance in family empowerment by women.

10. HYPOTHESES OF THE STUDY
 General hypothesis
 The main hypothesis stipulates that the microfinance contributes in women
empowerment.
 Specific hypotheses
 Savings, credits and family self-sufficiency are among various determinants of women
empowerment.
 Microcredit impacts the women development/promotion.
 Women contribute in family empowerment through microfinance.

11. Cont’s
 Some see microfinance as a source of major social transformation; others see it as the
seed of a revolution in banking access. Is true believers push for both.
 Microfinance is a type of banking service which provides access to financial and non
financial services to low income or unemployed people.
 According to Kreditanstalt für Wiederaufbau (KfW) said “microfinance is a significant
instrument for poverty reduction and tool for women’s empowerment”
 Thus, the improvement of women’s empowerment has the potential to lead to positive
changes in social and political dimensions.
 It has been well documented that an increase in women resources or better approach for
credit facilities results in increased well being of the family especially children

12. REVIEW OF LITERATURE
 The literature review on how microcredit impact women empowerment will allow
to assess and let women survive live a life with dignity, humanity, respect, self
esteem and self reliance.
 The emphasis will assess the ability to exercise choice incorporates three
interrelated dimensions and the women will be empowered when they will have
full control over their own life.
 The main objective of this initiative was to provide loans to poor people without
collateral, alleviating poverty and unleashing human creativity and endeavor of
the poor people especially women.

13. Cont’s
 Microfinance has proven its potential to generate results and in general, studies
suggested the poorest seldom benefit from microfinance, while the middle and upper
poor benefit the most
 Women in particular face significant barriers to achieving sustained increases in income
and improving their status, and require complementary support in other areas, such as
training, marketing, literacy, social mobilization, and other financial services
(e.g., Consumption loans, savings).

14. Various Credit Lending Models
 Associations: a target community forges together to form an association through
which a variety of microfinance activities are carried out
 Community banking: This financing model considers the whole community as one
unit and facilitates the establishment of semi-formal and formal institutes through
which microfinance are administered
 Co-operatives: A co-operative is an independent association of people who come
together voluntarily to meet their mutual economic, social and cultural aspirations and
needs through an egalitarian controlled enterprise
 Credit Unions: A credit union is a member-driven unique self-help financial institute
comprising of members of a specific group like labor unions or a social fraternity who
assent to save money and make loans to each other out of that fund at reasonable
interest rates

15. Cont’s
 Group: This model is based on overcoming individual shortcomings by the aggregated
accountability and security engendered by the formation of a group of these individuals.
 Individual: This is the simplest and the oldest credit lending model where small loans
are given straight to the borrower
 Intermediaries: As the name suggests this model is a ‘go-between’ organization
operating between the lender and borrower
 Non-Governmental Organizations: are very active in the field of micro-credit, be it
creating consciousness of the importance of micro-credit, or developing tools and
resources to monitor and identify righteous practices
 Rotating Savings and Credit Associations: A group of people join together and make
periodic cyclical contributions to a common fund that is given to a member in a lump
sum

16. Cont’s
 Village Banking: This is a 15-50 low income individuals who seek self-employment
come together to collect funds and give loans
 Small Business Enterprises (SME): persons get loans from micro-credit programs for
creating employment, increasing income

17. CASE STUDY
 Profemmes Twese Hamwe through Duterimbere MFI Institution is the oldest and one of
the renowned Microfinance institution in Rwanda.
 The research chose this organization because of its outstanding performance in
promoting of women economic development of poor in Rwanda especially the
marginalized women.
 To this point it serves as an important source of content for the researcher to achieve
the objective of her research topic.
 The bank helps the unemployed women to get microcredit loans to invest in small
income generating activities to ensure them with income self sustenance result into
economic empowerment of Rwanda women.

18. POPULATION AND SAMPLE SIZE OF THE
STUDY
 The target populations were all beneficiaries of PTH through Duterimbere MEI in Kigali
city specifically in Nyarugenge, Kicukiro and Gasabo District
 The study of whole population was not possible due to limited time and as result study
used 200 clients as sample to represent the whole clients population
 Data collection methods: direct interview, telephone, and field visited

19. DATA ANALYSIS, PRESENTATION OF KEY
FINDINGS AND INTERPRETATION
Previously, the research mainly hypothesized that the microfinance contributes in women
empowerment, and specifics hypotheses were:
1) Savings, credits and family self-sufficiency are among various determinants of women
empowerment,
2) The microcredit impacts the women development/promotion,
3) Women contribute in family empowerment through microfinance.

20. IDENTIFICATION OF PARTICIPANTS
 Participants to our research were identified according to some socio-demographics
variables.
 These are the age, marital status, education level, and employment status, which are
synthesized in the one table .
 These variables affect the use of savings and credit operations.

21. PRESENTATION OF RESULTS FROM
QUESTIONNAIRES
 Results from questionnaires are presented in different tables.
 The questions have been formulated regarding the objectives and hypotheses of
the research.
 For each question, respondents had to choose their position regarding the
statement, and depending on the following elements: strongly agree, agree,
neutral, disagree and strongly disagree.
 According to the variable age, most of respondents are ranged between 18-25 years,
representing 37, 5%. This meets the fact that the above category represents the active
population in general; while below 18 years of respondents have 11%, which means that
this group have not yet begin the income generating activities.

22. Cont’s
 regarding to the marital status, the married group showed 68%, and became higher
involved in savings and credit operations rather than the single groups of the 32%
 The results show that people with primary level constitutes 56% of the respondents.
Thus, 2.5% of respondents represents category of others. The others group includes
those who didn’t finish their primary school or never attended, we explain these
findings as a result of the microfinance’s institutions deal with low income projects.
 Reference made to employment status, the high number of respondents (45.5%) is self-
employed, whereas the students represent the small group with 7,5%, these results
match with the Rwandan government initiatives which encourage people not to look at
States employment, but to set up their own business (entrepreneurship)

23. Cont’s
 About the women use savings and credit in economic activity for their empowerment issue,
the most of respondents (49%) agreed with the statement that women use saving and credit
for economic activity, while a small group of them (5%) were disagreed
 According to the economic contribution may increase women role in economic decision-
making in the household and leading to greater well-being for women children as well as
men, the number of 14.5% of respondents are strongly agree while the greater respondents of
85.8% are agreed that area , none of the respondents disagree with the statement
 A big number of respondents 57% confirms that the women economically-developed change
gender role and status within household and community
 41% of respondents agree that: Microcredit provided by Duterimbere MFI is enough to
women empowering while 59% of respondents strongly disagree with the statement, it’s
means that the majority confirmed microcredit provided by Duterimbere is not enough in
case of the women empowerment.

24. Cont’s
 63.5% of respondents confirmed that Business held by women is competitive with others and
reproductive tasks, 44% disagreed with the statement while 14.5% of respondents did not
comment about the subject
 18% 0f the women interviewed strongly agreed to Women empowerment involves the family
and community development have highest the important in the family promotion and the
number of the 82% of respondents agreed with the statement
 The number of 80.5% of the women respondents were particularly proud of the financial
contribution of the loan received to their empowerment especially in their family.
 The results from our research have confirmed the contribution of microfinance in women
empowerment in Rwanda.
 Different questionnaires answered by respondents have underlain the above assumption.
 Some of these questions have evaluated the use of savings and credits in economical activity
for women empowerment, and this met the agreement of most of respondents

25. Cont’s
 regarding to the socio-demographic variables, the majority of respondents are married, self-
employed, achieved only the primary level, and are aged between 18-25 years
 On the other hand, the women appreciation towards the microcredit provided by
Duterimbere IMF in their empowerment has been analyzed, and most of respondent have
expressed their wish to increase the amount of credit offered by Duterimbere
 Based on the results of the present research, we intend to emphasize on the strengthening of
women empowerment through microfinance for the following major achievements: firstly, as
women constitute the high rations among all Rwandan, they empowerment will become a key
point in sustainable development of the country. Secondly, the promotion of women through
microfinance enhances them to become more self-employed, and encourage gender
promotion which leads them to competitiveness with men

26. Challenges
 Women have limited knowledge for business transaction and general business
knowledge; this affects clients’ business performance in term of price negotiations and
dealing with customers
 Few women clients still lack self confidence to try other business opportunities;
 Limited educational background as it is big problem in the improvement for women’s
business;
 Excess household responsibilities that inhibit their business concentration
 The loan they receive is not enough to satisfy their business needs;
 Lack of tangible assets or properties to be used for larger loan guarantee or caution in
the case an individual women encounters loan repayment problem has been one of the
challenges

27. Recommendations/Suggestions
From the study, the following suggestions are devised to make microfinance more
effective as a tool for poverty reduction.
 MFIs should have broader target group including the ones in the extreme poverty.
 Moreover, according to Rwanda Microfinance Policy, microfinance services should
be available to all sections of the community, particularly to the poorest and most
vulnerable members of society.
 The design of products and services should also be made flexible to reflect the
needs of the poor.
 It’s thus important to mention that there is need to improve the design and
outreach and to see MFI as part of the package for targeting the poor.

28. Cont’s
 To sum it up, microfinance is not a ‘magic’’ bullet for poverty reduction and the
increasing government’s and aid agencies’ emphasis on microfinance as a panacea
to poverty
 This excludes a large majority of the poor people who would need the products
and services and cannot afford this collateral. It’s thus important to mention that
there is need to improve the design and outreach and to see MFI as part of the
package for targeting the poor.
 MFIs should adapt existing training programs and set up new ones in response to
clients’ needs. With respect to introductory training, as previously mentioned,
transparency and full understanding of loan modalities must be ensured.

29. Cont’s
 The study findings indicate that MFI alone cannot meet the needs and resolve a wide
range of difficulties of the all poor women. There is need for infrastructure
developments for remote areas and need to improve market potentials.
 We recommend pursuing a double bottom-line strategy using a socially oriented
approach to foster empowerment, while at the same time stimulating financial
sustainability and additionally, provisions for monitoring must be made and MFIs
should be involved and eventually assisted in developing empowerment indicators.
 Incentive systems should be set up on all levels to encourage MFIs and Profemmes
Twese Hamwe to incorporate strategies and activities supporting women’s
empowerment into their work. The key here is not to provide more funds in general, but
rather to specifically reward promising and/or effective approaches.

30. Cont’s
 Profemmes Twese Hamwe needs to assist MFIs in adapting their financial products and
loan modalities to clients’ needs. This process includes obtaining information on which
needs different client groups have either through research or feedback from loan officers
and clients themselves and subsequently adapting the loan modalities. This can be done
with the participation of clients.
 An internal communication and decision-making structure between Profemmes Twese
Hamwe actors at all levels should be put in place. These structures should be
participatory and provide ample space for all actors, especially the MFIs and the
Technical service Provider, to include their ideas and practical experiences and discuss
what assistance they need to successfully support women’s empowerment.
 Despite increasing competition between MFIs to disburse loans, both Profemmes Twese
Hamwe and its member MFIs must ensure that loans are given responsibly to clients
who can afford them