As for the main activities funded through micro-credit, we have no data on the place of residence. For both areas in 2012, the most important activities for women are: livestock (the proportion of women is 65%), trade (70%) and education (66%). Handicrafts come in fourth position. The proportion of women who dedicate their loans to services is the only activity where they rate lower than men: 41%.
The predominance of demand for livestock in all categories is significant39. This was confirmed at the meeting with the heads of ENDA and in the interviews conducted in Grombalia where all women beneficiaries had credits for livestock (Mashia credit).
As a conclusion, we note that rural women’s access to micro-credit varies between the two main categories: rural women who benefit from micro-credit through MCAs are very few, whereas the number who benefit through ENDA reaches 65% of total beneficiaries. This is the result of ENDA’s policy towards women. The average amount of loans for men remains higher than for women however.
c. The impact and control of micro-credit allocated to rural women
Studies of the impact of micro-finance in Tunisia are non-existent for all categories of beneficiaries. ENDA has undertaken some impact studies40, but they were not accessible to us. The little information obtained in this respect is taken from three general studies:
- The study undertaken by the French Agency for Development “Ensuring access to agricultural finance”41 indicates that agricultural loan programs actually had very little impact on agricultural development.
- A thesis on “Micro-finance in Tunisia and Egypt: a tool for local development”42 shows that a significant part of loans is used to fund consumption and that only 19% micro-credit beneficiaries use them to finance new activities. Accessibility to micro-credit allowed people to increase their stock of goods by 83%, education and nutrition come in the second and third positions, with 52% to education and 39% to health. In addition, the increase in income generated by micro-credit allowed improving the standards of living of these populations.
- The CREDIF report, slightly out-of-date, on action research concerning entrepreneurial dynamics relating to women in the agricultural sector in Tunisia43 confirms these results: the impact assessment showed that actions in support of income generating activities (IGA) present mixed results in terms of profitability. Over one third of respondents had to use family income to pay their installments.
39 IBM Belgium : Study on micro-finance market in Tunisia – regulatory context, offer, demand and development conditions – Final Report 2009 - Europaid
40 Interviews with some officials of ENDA
41 AFD : Ensuring access to agriculture finance - December 2012
42 Pascal KENGUE MAYAMOU : «la micro-finance en Tunisie et en Egypte : un outil au service de développement local» Rennes2 University - June 25, 2012
43 CREDIF : Research action on entrepreneurial dynamics of women in the agricultural sector in Tunisia, 2003
These results challenge the stakeholders in terms of income generating activities and their funding.
Based on interviews conducted with female beneficiaries in rural areas (FG) in two different zones, the impact seems rather positive on household’s income, but with several limits. All the participants feel that the funding policy adopted by the BTS is “extraordinary” to initiate a project, which allowed them to be
“different, independent and optimistic for a better future for themselves as well as their families”; especially in these times of crisis, where no one would help them either to meet their needs or to start new projects, for lack of trust in their ability to pay. Beneficiaries were unanimous about ENDA Inter-Arab being their “savior”. Micro-credits allowed all of them to achieve their “dream”
without having to borrow money from family or friends. As for resource control, all participants confirmed that it was up to them alone to choose what to do with the credit no matter what their status.
Women and Leadership : a Tunisian association to support unemployed graduate women to better foster rural development
Given the macro-economic needs for regional development, the white paper issued by the Ministry of Rregional Development in 2011 showed that women executives represent a huge pool of resources when stabilized in their regions and able to build sustainable development. The main objective of the Boost Your Business (BYB) initiative launched by the Women and Leadership association with major partnerships is to coach young unemployed graduate women (representing %70 of unemployed graduates in 2011) and help them find funding sources for their capital, thus launching their own projects. BYB has targeted 6 most vulnerable governorates (Ariana, Kairouan, Seliana, Kef, Gabes and Gafsa), and our association engaged in helping unemployed young graduates.
The natural selection resulted in a potential of future entrepreneurs representing %65 of women in all sectors. Priority was given to projects targeting regional development and future job creations, and post training support – coaching - was implemented by specialized firms for graduate beneficiaries. The supported projects met up to %80 of the needs and rural specificities in some regions.
Based on some qualitative observations which are not representative of all female micro-credit beneficiaries in Tunisia, we can say that if micro-credit could increase household income and improve their standards of living, it nevertheless had certain negative impacts on women:
- It does not allow savings or investment that might enable women to pay off the loan the cost of which is high;
- It does not contribute to changing social relations between men and women:
it increases the women’s workload and decreases men’s financial participation while they continue to hold absolute power in the family.
However, it seems that micro-credit allows women to gain consideration and respect from their husbands, fathers and friends. Success in their projects and autonomy are generally positive results with regards to the relationships between men and women: changing behavior of fathers, husbands, neighbors who show more consideration and respect towards them. Most women do not have savings but own jewelry that they will “never sell”, meaning they will always need credit and remain dependent. Their small-sized activities do not allow them to save and invest with their own resources.