The Impact of Microfinance on Women Borrowers’ Livelihoods: A Case Study of BRAC Kabarole District, Western Uganda

Abstract

This study examined the experiences of poor women borrowers involved in BRAC microfinance initiatives in Kabarole District. Drawing upon empowerment theory, a cross-sectional study design was employed, with data collection conducted through interviews, observation and key informant interviews. Information was obtained from women borrowers who were selected through convenient sampling whereas interview guides were used to obtain key information from four group leaders and BRAC officials who were purposively selected. The study discovered that although, BRAC loans largely benefited women borrowers with multiple income sources, the expansion of accessibility to loans for women in far flung districts like Kabarole is economically empowering to women borrowers and increases women’s economic agency and productivity by providing highly needed capita for expansion. Access to BRAC credit facility has also improved women’s array of choices, improved their participation in decision-making, expanded their businesses and increased their appetite for individual loans which were previously seen as a masculine attribute. However, several challenges impeded the successful utilization of BRAC microfinance services by women. These included negative group dynamics, short repayment periods, and increased workloads for women, which reduced productivity. Additionally, some women misallocated their loans to address household needs, such as children's school fees and house renovations. In light of these findings, it is recommended that BRAC bank evaluates these challenges and develops mitigation strategies to fully empower women.