Joynes Gasper, 50, is married and has five children. She is a leader of a savings group called Malengo, one of the groups supported by UNCDF Tanzania through a UN joint programme that cuts across multiple sectors to improve development and human security in Kigoma, a region in north-western Tanzania.

Joynes was born in a traditional society that believes women’s duties are limited to household chores which means women have limited access to economic opportunities. Hence, Joynes like most women in her region had no source of income. She depended on her husband to meet all household needs.

“Before we were very shy, we did not speak at community meetings and rarely participated in the development of our households because our society never listened to us; they believed we had nothing to contribute,” Joynes explains.

But all that changed in 2018 when she joined a savings group and started providing for her family. “Thanks to the group and support from the project, I can meet some of my household needs without entirely depending on my husband. For example, I can feed my family, take the kids to school and contribute to other family needs.” 

The Finscope 2017 report indicates that 55% of women in Tanzania are financially excluded and most of them live in rural areas where proximity to financial services and formal education is lower. Higher levels of illiteracy, gender bias, cultural norms, and beliefs, as cited by the 2018-2022 National Financial Inclusion Framework , tend to be the leading causes of low-level women engagement in social and economic activities and poor access to social services and infrastructure.

The proliferation of savings groups has been a key driver of financial inclusion in Tanzania, particularly for women. According to FSDT’s 2018 assessment of women and financial inclusion in Tanzania, savings groups are the only area where the gender gap is reversed, compared to other financial channels such as formal and informal banking, insurance, and mobile money that are dominated by men in terms of access and usage.

Through the Kigoma Joint Programme (KJP), UNCDF Tanzania works with implementing partners to build financial capability and business skills amongst smallholder farmers by strengthening savings groups with the overall goal to pave the way for increased productivity, income and improved livelihoods. Today, the project has strengthened and facilitated sustainable operations of more than 500 groups and empowered around 7,000 smallholder farmer members comprised of 70 percent women.

“Because the poorest people and those in the most remote areas are not always served by formal financial service providers, savings groups provide a convenient, trustworthy and affordable way to smooth irregular incomes, save for a goal, and access small loans. The potential exists for women participating in savings groups to contribute to the region’s economy. At UNCDF, we are working to make women realize and believe that they have the means to save and invest in their own future,” said Ivana Damjanov, Country Lead for Rwanda and Tanzania. 

Joynes and other members of her group have already received training on savings group operations and management, business and entrepreneurship as well as financial education.

After completing the trainings, the groups are given kits for Village Savings and Loan Associations (VSLA) and their members are required to apply the gained skills to save and start collective and individual business activities. Joynes’ group, Malengo, used their accumulated savings to invest in agro-processing. They now run a small grain processing and flour milling factory that employs two people. It is a business that is profitable and has boosted her group’s savings enabling its members to access more small loans they can repay ‘safely and easily’.

Nevertheless, for Joynes, being in a savings group is also about social acceptance, gaining confidence in oneself, and supportive friendships.

“At a group level, we can raise our voices to express our opinions and demonstrate our abilities. For example, we now elect new leaders in every annual saving cycle for our group. Through this opportunity, I was elected as the group chairperson in this saving cycle. Also, joining the Malengo group has not only helped me generate income but also connect to other people as I participate in social events such as funeral and wedding ceremonies. We also have a social fund to help each other in times of difficulty like funerals that directly affect a member of our group.

At a family level, we have gained skills to help us make better decisions at home. For instance, I can decide on the kind of investment to make from the my income unlike before where my husband was the only one who made all major family decisions, which often resulted in conflict or misunderstanding,”  Joynes emphasized.

For more on the inclusive digital economies strategy at UNCDF

On International Women’s Day, March 8th 2021, a high-level coalition launched a bold call to action for “Reaching Financial Equality for Women”. The partners behind it are the UN-based Better than Cash Alliance, the United Nations Capital Development Fund, the United Nations Secretary-General's Special Advocate for Inclusive Finance for Development, UN Women, Women’s World Banking and the World Bank.

The 10 actions for governments and companies to rebuild stronger after COVID-19 are:

1. Digitize private sector payments.
2. Digitize payments of government social benefits.
3. Outlaw discrimination against women.
4. Ensure universal access to identification.
5. End the gender gap in mobile phone ownership.
6. Hire women at banks and mobile network operators.
7. Collect, analyze and use sex-disaggregated data.
8. Design appropriate and affordable financial products for women.
9. Help women benefit from e-commerce opportunities.
10. Create and enforce strong digital finance consumer protection mechanisms.

For more details on the 10 Actions click here