'Chamas' Empowering women

Economists have pondered over the effectiveness of the provision of “Chama’s” as mechanism for ameliorating the socio-economic conditions of women in poverty and tackling gender inequalities through fairer distribution and access to financial resources.

Theoretically, Chama’s should empower women in 3 key ways; a) independent sources of income outside the home, thereby reducing dependency and enhancing autonomy, b) exposure to new ideas, values and social support that should encourage their assertiveness, c) enhance women's status, such as in the eyes of their husbands, that may promote greater discussion and cooperation over use of resources.

A dramatic increase in women's Chama’s has occurred in the country. Indeed, empirical data has suggested a positive correlation between credit availability and women's empowerment.

There are two key processes that have been identified in order to advance women's empowerment - social mobility and economic security. The poor often have short-term liquidity needs for consumption smoothing.

A high proportion of the funds made available for self-help group schemes were utilized by women, enabling them to meet subsistence needs during difficult economic times. An important indicator of empowerment is the ability to make decisions within the household. Through Chama’s women have greater personal income, and this has helped to increase mobility and therefore employment potential of women who no longer have to solicit permission from their husbands beforehand.

Women's groups and Chama’s should lead on to increased employment and individual income. This in turn allows better decision-making about consumption and investment leading to greater wellbeing for women. Furthermore, through greater status within the household and community, poorer women will acquire more negotiating power and partake in wider movements for social and political change that will reinforce empowerment of women beyond mere financial capability.

However, the usefulness of Women groups and Chama’s as a means of empowering women is severely undermined by their lack of ability to achieve overall social transformation, lifting women out of abject poverty. Indeed, it is widely recognized that women groups have met limited successes. The ability of a woman to transform her life through access to financial services depends on her individual situation, abilities, environment and the status of women as a group.

It is impossible to ignore other factors that play a greater role in women's empowerment than mere financial opportunities. Empowerment of women depends on power that is deeply rooted in our social systems, cultures and values. It is unlikely that any one intervention such as the provision of credit will completely alter power and gender relations.

Women often value the non-economic benefits of a group-lending program as much as or more than the credit. Some of the most valued benefits include expanded business and social networks, improved self-esteem, increased household decision-making power, and increased respect and prestige from the community. No longer can this strategy be reduced to simple income-generating activities through revolving funds, but rather it entails and includes other elements of empowerment such as leadership, self-management, networking and entrepreneurship.

Statistics and surveys indicate that Women self-help group programs have profoundly increased the economic empowerment of women, such as the provision of loans for business start-ups that were previously unattainable for underprivileged women.

Credit availability and generation of employment opportunities are fundamental stepping-stones to further social and political empowerment of women. However, the process of achieving overall social transformation and gender equality will require more time for long-term outcomes.