Numida is investing in Uganda’s women business owners
Women make up 50.71% of the Ugandan population (World Bank) but as participants in the Ugandan economy, women own only 32.8% of businesses in the services and industry sector (the predominant economic sector). This number could be significantly higher if women in business did not face various hindrances. Women-owned businesses are more likely to be informal and so struggle to access any form of credit because of the stringent requirements of banks and traditional lending institutions. Their businesses are deemed ‘too small and risky’ to provide credit to, and as a result are less likely to receive working capital loans and to grow.
These challenges are further aggravated by gender inequality and biases women face as shown in a report by The Uganda Economic Update;
Uganda continues to face gender inequality in economic empowerment and economic outcomes, despite closing gender gaps in rates of labour force participation and entrepreneurial activity. Women earn less than men, and according to the UEU, increasing women’s earnings to match men’s would boost national wealth by 11.8% (USD $1,619 per capita).
The COVID-19 pandemic expanded gender gaps in paid work and business ownership, and the 2020 lockdown set off a wave of work stoppages and business closures that affected women more than men, while job losses and school closures have resulted in a greater share of unpaid care work for women, who already shoulder a disproportionate amount of household responsibilities.
The theme for this year’s International Women’s Day on March 8th is breaking the bias. It emphasizes a world free of bias, stereotypes and discrimination against women. Encouraging a world that is diverse, equitable and inclusive. Research has shown that reduction of the gender inequality gap boosts growth and development. Empowerment of women in business will not only better their livelihoods and create employment opportunities, but it will also propel economic growth. A self-sufficient business woman has a ripple effect that positively touches her family, community and eventually the nation.
Numida is breaking lending barriers and biases by indiscriminately providing digital loans to all businesses regardless of gender. At the start of 2021, Numida’s client base was 33% female. Throughout the year, we reviewed our lending policies to consider more informal businesses and non-traditional proofs of business ownership. Since then, we have seen an increase in women owned businesses to 43% of our portfolio. And women-owned businesses, informal or not, pay just as well as other businesses.
In our drive to reach a portfolio of 50% women-owned businesses, Numida is running a Women’s Day Campaign that will run from 8th February to 8th March. All Numida clients that refer a woman-owned business to join Numida will stand a chance to win a grand prize of UGX. 800,000, with additional business gift hampers for runners up.
In addition, we will be celebrating some of our existing female clients and team members on social media and encouraging the public to engage with us and share a short story on a business woman they want to celebrate, (with prizes for the 2 stories with the highest engagement on Twitter and Facebook).
This campaign aims to continue to bridge the gender gap in business financing by providing unsecured working capital loans to more women-owned businesses whether they are informal, small or medium sized.
Numida exists to help micro, small and medium sized businesses grow. We currently provide unsecured, digital loans through our Android App and serve all towns and districts across Uganda.
We look forward to announcing our International Women’s Day campaign winners on 11th March on Facebook and Twitter, and reporting back on its impact on our portfolio.
