Financial tools and education offered by FINCA Canada have helped to improve the financial position for hundreds of thousands of marginalized and low-income individuals, particularly women, in the DRC and Haiti. **finca canada**

Innovative solutions advancing financial inclusion for women

harlotte Assumani used to struggle to provide for her family. “Our income could not cover our family’s basic needs,” recalls the widow and mother, whose home is in the Democratic Republic of the Congo (DRC).

She decided that starting a small business would improve the situation. However, living in one of the poorest countries in Africa, where 74 per cent of the population lack access to basic financial services, Ms. Assumani faced what might have been insurmountable challenges. Fortunately, she connected with FINCA, an international microfinance institution and social enterprise that offers the “un-banked” – millions of people living under the poverty line – financial tools that help them achieve financial empowerment.

“Undertaking vital research to gauge the project’s success, FINCA measured the annual income and savings of clients. Data illustrated that the average yearly income among all clients in the DRC increased by 55 per cent. Among women clients, income rose by 105 per cent by 2022.”

With FINCA’s help, including an initial loan of $400, Ms. Assumani now runs a restaurant in downtown Kinshasa that serves 150 clients a day. “What makes me happy is that my restaurant has grown, not only for myself and my children but also for my employees,” she says. “They have extended families, so not only my family but also the lives of 32 other people depend on my business.”

FINCA Canada, a partner of FINCA International, works to alleviate poverty in Africa, Eurasia, Latin America, the Middle East and South Asia, says Drew Boshell, executive director at FINCA Canada. “Access to clean water, shelter, food, education or health care, all those things can be attained by people achieving economically sustainable livelihoods.”

FINCA Canada recently concluded a six-year partnership with the Government of Canada, which ran from 2017 to 2023, fulfilling a $15-million co-operative agreement that largely focused on projects in the DRC and Haiti. The goal was fostering economic prosperity and building financial health and resilience for marginalized low-income individuals, particularly women, who, points out Mr. Boshell, are disproportionately impacted.

This focus aligns with the federal government’s Feminist International Assistance Policy, aimed at removing barriers to financial inclusion for women. One program, Juste Pour Elle (Just for Her), provided 4,568 loans to 2,440 women, amounting to approximately US$34.5-million by the end of the project.

FINCA helps clients “lift themselves out of poverty through financial literacy and inclusion,” states Mr. Boshell. Key to this are training programs that introduce individuals to practices such as opening a savings account, managing a budget, and accessing loans and life insurance, he explains. Throughout the project, FINCA engaged 100,000 people in Haiti – 91 per cent of whom were women – and 189,000 clients in the DRC.

Undertaking vital research to gauge the project’s success, FINCA measured the annual income and savings of clients, Mr. Boshell says. Data illustrated that the average yearly income among all clients in the DRC increased by 55 per cent. Among women clients, income rose by 105 per cent by 2022.

At the project’s beginning, the average savings of clients in the DRC was US$86, notes Mr. Boshell. By the end, savings had almost doubled to US$168, “a significant achievement, especially in light of the pandemic that took an even greater toll on those in poorer regions.

“We were very worried about the financial impact of COVID. But we found that, on average, our clients weathered it much better than the general population in the area,” he says. “This was not by accident.”

FINCA’s emphasis on financial literacy training, coupled with savings incentives programs, landed clients in healthier financial positions. For example, during COVID-19, Ms. Assumani was forced to close her restaurant for three months.

“That was tough,” she says. “Fortunately, FINCA kept supporting us.” The organization offered a program called Grace Period, whereby clients could opt for reduced or zero loan repayment. “This helped me reduce my expenses,” says Ms. Assumani, “and use my savings to provide support to my workers.”

FINCA has implemented innovative solutions to break down barriers to financial services, says Mr. Boshell, including the development of mobile banking tools, such as Click, an app that facilitates banking transactions. This proved especially valuable for clients in remote areas, who could carry out financial transactions from their phones, including during the pandemic.

Access has also been improved with the expansion of FINCA’s branches and through the increase in the number of banking agents – from 32 to 101 in Haiti and from 1,335 to 1,746 in the DRC. The agents, Mr. Boshell adds, “can penetrate further into underserved communities to provide financial inclusion for all.”

More information: FINCACanada.org.

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