The business case of investing in women’s economic empowerment Roshaneh Zafar, Founder and Managing Kashf Foundation

2 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

3 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

4 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

5 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

6 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-) 3 rd largest MFI in Pakistan (Current outreach 288,000 clients)

7 Outreach Cumulative Outreach: 850,000 businesses US$210 million disbursed

8 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

9 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)

10 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

11. 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

12 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 /month ($7-$73) Pension Savings (Old Age) Voluntary/Demand Driven Co-branded

13 Savings Outcomes

14 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

15 Saima Muhammed Featured in NYT 2009