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How tiny loans are empowering poverty-stricken women in Africa

*This article was submitted by Theresa Devereux, Opportuntiy International

When asked where her business would be located, Ghanaian Rosina Sarfo's answer was "under a mango tree" because it is "near the place where the buses and taxis drop their passengers when they return from Kumasi, so it is good for sales."

Rosina's marketing instinct was spot-on. A year later, the constant stream of customers to her small fried-fish stall has meant Rosina has expanded from cooking in one pan over a fire to buying fish in bulk and using a food warmer to increase the quantities she can sell.

But despite her drive and business acumen, Rosina's fish stall would never have got off the ground without a small loan of £55 from microfinance charity Opportunity International. She is now able to fully support her family of six.

Give a woman earning potential and the knock-on effects for her dependants and community are far-reaching. Women tend to allocate much more of their income to basic needs - better nutrition, housing, healthcare and education - for themselves and their children.

Today, 85% of Opportunity International's clients are women and much of the focus of its work is in finding new ways and products to empower women and harness entrepreneurial spirit like that of Rosina Sarfo.

But empowerment is not just about economics; increased self-esteem is a striking impact of Opportunity's work with women, since training and education are part and parcel of the loan process. The result is frequently a positive change in how women perceive themselves and how their families and communities see them.

Take Jennifer Mwesigye. After years of struggling to support her seven children by working as a seamstress in Uganda, in 1997 Jennifer took a small loan to buy her own sewing machine. This enabled her to expand her sewing business, which in turn led her to diversify into other areas. First, she opened a motorcycle taxi business, before purchasing land to build properties to rent out. Today, Jennifer's combined businesses employ 57 people, and, besides her own children, she has taken on the care of five adopted AIDS orphans. Meanwhile, her natural leadership skills have led to her being elected to the town council; now she is changing the local culture for women, overturning barriers for them to own property and start their own businesses.

"When you train your women, you train a whole nation" comments Memory Nsinga, who has worked for Opportunity International Bank of Malawi for six years. She describes how scared women were to even enter the bank when the Limbe branch first opened. "We went out and talked to them in the community and ran a radio campaign" the first to come in were real pioneers; they shared their experiences with other women. Before, a bank account was for rich, privileged people.

Savings can also empower women as Opportunity's Susy Cheston, vice president for policy and research, explains "Poor women are not only focused on investing in opportunities for income and growth" she says, "but also on managing risks and reducing their vulnerability by protecting against emergencies and planning for events such as marriage, childbirth, educating children and funerals."

In the shade of the mango tree, Rosina does not work by herself. While she continues to do a roaring trade with her fried fish, her sister runs her own, separate, business right next to her, selling fried yams. The pair have got their marketing strategy sewn up - a plate of fried fish and yams makes for a complete meal for hungry travellers.

Rosina joins millions of women around the developing world who have accessed microfinance and discovered the empowerment it can bring. ... more

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