Birgit Havlik ist Fondsmanagerin des I-AM Vision Microfinance Fonds bei Impact Asset Management (I-AM). In einem Gastbeitrag für die Fondsfrauen schreibt die in Wien ansässige Portfoliomanagerin, welche Bedeutung Mikrofinanzkredite speziell für Frauen haben und warum sie nachhaltige Investments in Schwellenländer darstellen.
The risk of living in poverty and facing poverty in old age is higher for women not only in industrialized countries but also in emerging and developing countries, compared to men. Limited access to education, lower employment rates, and a patriarchal distribution of roles within families—where women are responsible for all caregiving work for children—are significant factors contributing to the risk of poverty. Additionally, the exclusion from financial resources is another reason for the higher poverty risk faced by women. Furthermore, when women are employed in low-income countries, 90% of them work in the informal sector, meaning poorly paid jobs without social security.
High demand for loans from female borrowers
One lever to break the cycle of poverty and contribute to gender equality, which is UN Sustainable Development Goal No. 5, is providing financial support. The concept of microcredits is based on the idea of helping people help themselves. Women who use microcredits to pursue specific economic goals, such as starting or expanding a small business, are supported, actively putting the idea of helping people help themselves into practice. The high proportion of female borrowers for microcredits—84% of the borrowers reached by the I-AM Vision Microfinance Fund in 2023 were women—highlights the significant demand for loans among women. Microcredits can pave the way for female entrepreneurship and thereby contribute to gender equality and liberation from economic dependency.
The selection of microfinance institutions matters
Investors can contribute to the financial independence of women (and men) in emerging and developing countries by investing in microfinance funds. These funds pool investments in microfinance institutions (MFIs) from various regions of the world, which undergo thorough analysis before being included in the portfolio. The microfinance institutions act as contact points for borrowers in the invested countries and manage the loan processes. Only MFIs that meet strict selection criteria are included in the portfolio. Investing in a microfinance fund combines social sustainability for the investor with stable returns that develop largely independently of the bond and equity markets.
Good microfinance institutions are characterized not only by treating their customers as equals but also by positioning themselves as local information and support centers for important topics. For example, the non-profit MFI Crecer in Bolivia not only provides microcredits to rural and urban populations but also offers courses on financial education. Additionally, Crecer provides cervical cancer screenings for women in the region. Bolivia has one of the highest mortality rates for cervical cancer, making these screenings an important preventive measure.
During my due diligence trip to Mongolia this year, I was once again able to witness firsthand the importance of microfinance loans for female borrowers. Among other things, we visited the soap brand Savana. The founder of the company was inspired to start a business making soaps with natural ingredients after experiencing several illnesses within her family. Today, Savana is a successful and sustainable company with nine employees and good growth prospects.
This example, along with many others from our portfolio, demonstrates how microcredits can serve as a stepping stone to economic and financial independence for women in emerging and developing countries.
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