Economic Empowerment for Pastoralist Women: A Comparative Look at Experience in Somaliland, Sudan & Uganda PENHA – Pastoral and Environmental Network in the Horn of Africa. PENHA has a longstanding commitment to gender equality. Gender inequality is generally much sharper in pastoralist communities than it is elsewhere. Women Pastoralists are the marginalised of the marginalised. Until recently, pastoral development NGOs neglected gender and almost exclusive focused on water supply, animal health, and pastoral land tenure. Presently, there is consensus is that gender equality is central to development. Hence more attention is being paid to gender. 1. The Program PENHA is implementing a women’s economic empowerment program - covering selected pastoralist and agro-pastoralist communities in Uganda, Somaliland and Sudan. 1.1 Program Aims & Goals Increase access to credit – making women more “bankable” and linking them up with finance providers. Increase women’s access to (business-related) information Increase women’s participation in business networks Ultimately: Help women to increase their independent incomes, from existing and new activities Promote female-owned and other SMEs that employ women 1.2 Program Components Business Skills Training Strengthening Women’s Groups Grants for rotating funds and re-tooling with assets (exotic goats, sewing machines, etc.) “Upstream” work with business networks, “meso-level” actors & policymakers 1.3 Analytical Work Socio-Economic Baseline Studies examining local conditions, for program design, M&E and policy work. Value Chain Studies to identify interventions that can … … increase women’s mark-ups (profit margins) in existing value chains … or enable them to enter new markets. 1.4 Areas of Operation – Where We Are Working Uganda – the semi-arid Cattle Corridor (Ssembabule, Mbarara & Kabale districts in the West, Teso & Karamoja in the East) Somaliland – Awdal, Togdheer & Sanaag districts Kassala State in Eastern Sudan (bordering Eritrea) Socio-economic conditions differ widely - but there are some basic commonalities The Pastoral Context Acute Women’s Subordination: very low social status for women, high levels female illiteracy- very limited access to education and training for women and girls very restricted roles in public life, restricted ownership of livestock (cattle and camels) – the main store of wealth in pastoral economies. limited liberty for women to travel early and / or forced marriages harmful traditional practices (polygamy, “wife sharing” in Uganda, FGM in Somaliland) “bride price” that encourage people to view women as property. (In a recent meeting with the Karamojong Turkana and Pokot, pastoralists one of the men present referred to women as “income generating activities” 2.1 Women’s Empowerment in the Pastoral Context Without accompanying social change, increased incomes for women will not bring gender equality (instances of women surrendering their incomes to men and the extra workload and responsibilities) Winning the support of men is vital – empowering women does not necessarily mean “dis-empowering men” For pastoralist women, empowerment involves several mutually reinforcing elements: Education – not only basic literacy and numeracy but formal education too. Access to information Independent incomes Securing women’s human rights and the right to own property 2.2 Obstacles to Local Economic Growth and Business Poor transport and telecommunications infrastructure Lack of, or poor, connection to national power grids Irregular and seasonal incomes Remoteness and low population densities (dispersed populations) Very low cash incomes and thin local markets Insecurity of land tenure and ownership Conflict and endemic violence (in Karamoja, Teso and parts of 2.3 Social and Economic Change – Trends towards Sedentarization and Urbanization Pastoralists are living more settled lives - in and around towns and trading centres. Some maintain their pastoral livelihoods, while settling their families. Some settle by choice, others by force of circumstances (loss of land, livestock, livelihoods). For some livings standards fall, for others they improve. New Opportunities for women: For many girls, more settled lives offer new educational opportunities. Growing towns and trading centers mean increased opportunities for economic diversification and service provision. New public investments – schools, hospitals and roads – provide new business opportunities for women. New activities in towns and trading centres: Hairdressing and beauty salons Dressmaking and making uniforms and sweaters for schools Catering for weddings and social events Catering and snack shops for schools and hospitals Producing packaged, higher-quality honey for distant, urban markets. Processing milk – higher-quality ghee and yoghurt - for urban markets Juicemaking Retail shopkeeping Video shacks – showing English Premier League soccer and Hollywood films. This is in addition to the traditional economic activities listed below: Traditional activities: Growing cereals, grains, vegetables and fruit on small plots Rearing small stock (goats and sheep) Milk sales and processing (making ghee) Beekeeping and honey production Making crafts for the tourist market Teashops (Somaliland) and small retail shops Beer brewing and sales (Uganda) [Note: In Karamoja there is a trade-off between increased women’s incomes from beer brewing and the growing social problem of alcoholism –it has reached a crisis point] 3.1 Moving up the Value Chain Women can move up the value chain, improving the quality of their goods and services. Women-owned enterprises are successfully marketing yoghurt, honey, and juices to supermarkets in capital cities. With support, they can access export markets. Most SMEs are owned by educated and politically connected businesswomen, often with successful husbands. Formally registered women’s groups can grow into cooperatives, run as shareholder businesses, and move up the value chain. 3.1.1 Key Points from Value Chain Studies Middlemen’s mark-ups are often very high – few middlemen means little competition. Group marketing increases women’s bargaining power. Ability to supply goods reliably and at sufficient scale is crucial – cooperatives can achieve this. Mobile phones and radios increase women’s access to business information and strengthen women’s bargaining position. Upgrading skills can help women to move up the value chain Lack of collateral/credit limits women’s ability to purchase or lease processing equipment and add value “at source”. Transport (high costs and limited availability) is a key constraint. The “outgrower” model - women’s groups trained & equipped to supply goods to an entrepreneur who can export - can increase incomes for larger numbers of women. Opportunities for web-based marketing of crafts - authentic 3.2 Access to Credit and Productive Assets Uganda: Local MFIs and banks in nearby towns Women still find it difficult to get loans Obstacles cited by women: Lack of collateral - few own land Need husbands’ signatures in order to get a loan Small size of loans available: cannot buy capital equipment Seasonal incomes - but MFIs demand monthly repayments Somaliland: a handful of NGO microcredit programs – loans too small Sudan: No local finance institutions No NGO microcredit schemes 3.2.1 New Sources of Finance Somaliland: Dahabshil money transfer company - only major financial institution. Remittances - central to the economy, but largely spent on consumption (chewing khat, a mild stimulant), not investment and going mainly to urban and settled communities. Mobile phone money transfers and Telesom’s “Zaad Services” payments system, with limited phone banking facilities (up to $3,000). Mobile Phone Banking: Great potential in pastoral areas, with distant banks and high transport costs. Phone ownership (and access to phones owned by others) is widespread in Western Uganda and growing in rural Somaliland. No such opportunities currently exist in pastoral areas of Kassala. 4. Business Skills Training – Some Issues Uganda: Different literacy levels in one group - challenging for facilitators. More sophisticated businesswomen have different needs: higher-level training business development services (on-going advice and support) Somaliland: Literate group members can help the illiterate Women have surprisingly wide informational networks and raise very specific questions Sudan: 70% of the women involved are illiterate Women have had very little access to information Elementary level of training Training in generic business skills was more than training in technical skills. Reason- the value of those skills is likely to diminish fairly rapidly as relative thin markets become saturated and the margins are driven down. Where women have little experience in public life, cohesive women groups can play a pivotal role. Groups build and reinforce social capital –necessary as guarantee for credit for women without collateral. Facilitates group savings which can be used as revolving funds within the group with manageable interest. Self confidence is built / strengthened and this is a necessary condition for entrepreneurship. Women’s groups help to mitigate women’s time poverty. Husbands feel “more secure” if their wives go to market their products in groups- this also reduces male ridicule from peers. 4.1 Lessons from Business Skills Training Need to focus on adult literacy training Need to develop high-quality audio-visual training and information materials (IPA is conducting randomized controlled trials (RCTs) on the use of financial literacy videos with women’s groups in Peru) Need for women’s resource centers for training and access to radio, TV & video. Participants want skills training for specific enterprises, plus grants or loans for equipment and productive assets. Training workshops provide opportunities for broader discussion of women’s roles and promote acceptance of women in public life. Women’s Groups Few tangible benefits from business skills training on its own Combining business skills training with grants for rotating funds or productive assets delivers real benefits for poor pastoralist women. Uganda - provision of exotic goat stock, with specific training inputs, enabled women’s groups to generate substantial new incomes. Somaliland - rotating funds helped women develop a variety of activities (small retail and tea shops, selling sheep) and increased their incomes substantially. Additional income used for school fees, medical expenses, personal consumption. Intangible benefits - increased confidence & visibility, public validation of women’s role in business. In Kassala State - no significant economic benefits yet, but the program built support among husbands and traditional leaders for greater women’s participation in economic life. 6. The Need for Rigorous Evaluations Studies around the world - mixed evidence on the effectiveness of business skills training - some support for business skills training plus grants/loans for productive assets. Randomized Controlled Trials (RCTs) rigorously compare outcomes with groups receiving support against similar groups that do not receive support. RCTs - a promising new approach that can help to identify what works, and what does not work. NGOs can collaborate with universities and research institutions on RCTs and on qualitative, context-specific studies. 7. Concluding Observations Business skills training for women’s groups can be effective, when combined with grants for rotating funds and productive assets. Such programs deliver real benefits, but promoting medium and large scale enterprises that employ women can deliver real change. The overall business environment matters- business friendly tax regimes and regulatory policies, a supportive frame-work for regional and international trade. Getting girls in school, and enhancing the quality of education offered, can bring transformational change. Adult literacy programs and programs that increase access to information are vital. Strong women’s groups can help pastoralist women to participate more effectively in economic and public life. With rapid social and economic change in pastoral areas, there is an urgent need to document and analyze changes. NGOs and researchers need to step up their efforts to support pastoralist communities. 7.1 Linking up the grassroots & policy levels Achieving real change at the local level requires: • actions at the policy level (education, infrastructure, trade, taxes) • working with higher level business networks (attracting investors) Finally: Right now: pastoral women are economically active we are supporting them in their own initiatives In the long run, the fundamentals are: getting pastoralist girls into schools transport & telecommunications infrastructure. END
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