The business case of investing in women’s economic empowerment

Roshaneh Zafar, Founder and Managing Kashf

Foundation

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Content

Evidence of Investing in women

Barriers to Women’s Economic Participation

Kashf Rationale and Background

The Kashf Gender friendly/Pro Women Financial Model

Economic Mainstreaming

Challenges of Inclusive Financial services

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Business case of Investing in Women

Low participation of women in the economy has a high loss for families and societies

• Annual GDP loss of 0.7%

Low participation of women in the economy creates high dependency within families

• 2:1 ratio per individual

Low participation of women in the economy creates lost opportunities

• 70% of the world’s poor are women (feminization of poverty)

Source: World Bank

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Barriers to Women’s Participation Limits on Mobility and lack of access to markets

Crowding out in terms of access to resources

Wage discrimination

Triple burden and lack of access to time saving technologies

Social norms that play down value of women’s time

Perceptions of women being repository of family honour

Concentration in a few sectors (sewing, embroidery)

Lack of access to financial services

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Rationale for Establishing Kashf Foundation

Women matter

Women can be active economic agents

Poor households are bankable

Poverty is a growing concern in Pakistan

Specialised MF can work in the Pakistani context

An MFI targeting poor women can be sustainable

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Kashf Achievements

Founded in 1996 as the first specialised MFI in Pakistan

Targeted women from low income urban communities

Designed effective pro-poor pro-women products and services

Strong learning approach

First MFI to achieve financial sustainability (2003)

Pioneering effort of raising US$ 36 million from commercial sources (2007)

Trendsetter in terms of rating (JCRVIS-BBB-)

3rd largest MFI in Pakistan (Current outreach 288,000 clients)

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Outreach

Cumulative Outreach: 850,000 businesses

US$210 million disbursed

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Change, Power, Choice

Change

• Developing a sense of self worth

• Valuing women’s economic contribution/value of time

Power

• Enhancing bargaining position within the household

• Improving/Impacting inter-spousal relationships

Choice

• Having the right to control one’s life

• Being able to choose a better life for one’s children

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The Kashf Pro Women Approach

Economic Leverage

Enhanced bargaining position

Transformation

Through developing and designing women friendly financial services and products

Through a women friendly delivery methodology (relying on associative strength)

Through a sustainable, cost effective, best practice institution that focuses on women. Ensuring gender equity at all levels (Board, Management, Field, Clients)

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Economic Leverage

Products

• General Loan

• Emergency Loan

• Life Insurance

• Home Improvement Loan

• Health Insurance

Principles of Product Design

• No collateral

• No male guarantors

• Simple documentation

• Accessibility

• Overcoming literacy constraints and mobility barriers

• Women specific factors

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Economic mainstreaming

Deposit led institution (scalability)

Full suite of services (especially deposits for women clients)

Access to resources (moving beyond debt led models)

Rationale for Establishing Kashf MF Bank

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Designing Pro Women Savings

Market Segmentation Exercise

Demand Analysis

Product Design

2 Market segments: poverty saving upto Rs 1,500/$22 and the other segment saving upto Rs 5,000/$73

Women were the primary savers

Using informal sources

Saving for life cycle events (marriages, home construction)

Commitment Savings (3-8 years)/Goal Oriented

Rs 500-5000/month ($7-$73)

Pension Savings (Old Age)

Voluntary/Demand Driven

Co-branded

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Savings Outcomes

Active Depositors

16,18619,125

21,52024,470

27,893

0

5,000

10,000

15,000

20,000

25,000

30,000

May June July August Sept

Dep

osi

tors

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Challenges

Greater number of women use the loans themselves

Greater number of women have control over the income they generate

Greater number of women are able to graduate to larger loan sizes (tranform their businesses)

Greater of number of women are able to control/mitigate the drudgery of their lives (double burden)

Greater number of men value the income women bring into their homes

Greater variety of products are available that are pro women with the right policies

Greater depth of deposit products that are affordable, convenient and accessible

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Saima Muhammed Featured in NYT 2009