Community Banking as an Economic Empowerment Strategy for Women in Poor-Resourced Settings in Uganda: Low-Income Women’s Gains and Struggles

ABSTRACT Microfinance, especially microcredit, has increasingly become a popular poverty reduction strategy in many developing nations. Microfinance aims to enhance people’s economic situation through increasing access to credit, with women forming the largest group. The key question is to what extent does microfinance address women’s needs and concerns to enhance their economic empowerment? The article draws on findings from a mixed-methods action-research study with members of community banking schemes, using in-depth interviews, key informant interviews, and focus group discussions. The article examines the extent to which community banking, in the form of a group-based guaranteed microcredit scheme, is gender sensitive to women’s needs and challenges. The study shows that gender-blind design, structure, and delivery of microcredit programs for people from low-resource settings have significant implications for women’s ability to access and benefit from microcredit products. While community banking can contribute to financial inclusion, women continue to face challenges that greatly limit their opportunities for economic empowerment through participation in the scheme. The study underscores the importance of being sensitive to women’s economic, social, and cultural needs to promote their economic empowerment.