16/08/2024 | News release | Distributed by Public on 16/08/2024 23:34
Women face serious gender gaps in all aspects of Guatemalan society, especially in economic life. Women in Guatemala runfewer businesses than men, own less property, and face greater obstacles in obtaining credit and financing. Less than half (43%) of Guatemalan women are employed. Only about a third (34%) hold a bank account. In women's financial inclusion, Guatemala ranksamongst the lowest of Latin American countries. The consequences of this marginalization are even harder for its nearly four million Indigenous women. Addressing these challenges could help the nation kick-start its economy, which is characterized by high informality and low productivity.
Excluding women isn't just unfair. It has real economic and social consequences. The uneven playing field impedes economic growth, makes it harder to fight poverty, and limits women's access to essential services like education and healthcare. Women are also more often victims of violent crime. Sustainable development in Guatemala hinges on addressing this significant challenge.
Conversely, when women are included in the economy, everyone benefits! Women bring new skills and perspectives to the workforce, boosting productivity and even raising men's incomes. Financial inclusion of women also makes people better off, enabling them to purchase more for their families and have more leisure time. Empowering women financially is a pathway to driving sustainable economic development, reducing poverty, and strengthening communities in Guatemala.
The IAF provides investments and technical assistance for grassroots organizations to address issues in their communities. Our people-oriented approach enhances economic opportunity and supports women's economic inclusion.
In 2023, nearly three-fourths (74%) of active IAF grants advanced economic opportunity and prosperity. A third (33%) of IAF grant projects were led by women, almost half (45% percent) of IAF grantees focused explicitly on advancing women's empowerment, and all IAF grantees included women as participants.
One such grantee in Guatemala, the Instituto de Enseñanza para el Desarrollo (IEPADES), addresses the issue of women's financial inclusion in its community.
IEPADES addresses the economic exclusion faced by Guatemalan women through its "Savings for Change" program in the municipalities of San Pedro Carchá and San Juan Chamelco. The program promotes women's financial independence by helping them earn an income, many for the first time, and connecting them with credit through savings and loan associations.
IEPADES has formed and supported 42 savings and loan groups, each with about 15 women members. Group members pool their own funds and can use their savings according to their priorities, such as to invest in economic activities or cover education or health costs. Thanks to financial literacy training, women have averaged a 75% increase in individual savings. Each group also elects their "group management committee," including a president, a secretary, and a treasurer.
IEPADES has increased its membership by 40% over its grant period, engaging 850 Indigenous women in its savings and loan groups, which now make a total of around half a million dollars available for members to invest in economic endeavors. Thanks to this financial and technical support, 86% of IEPADES participants have launched or improved enterprises. From textiles to agribusinesses, these women are making strides -and increasing their family incomes.
IEPADES has also been introducing women to the digital economy. Nearly half (43%) of its savings and loan associations now use a software application to better manage their finances.
With this training and experience, women leaders are now participating in local, municipal, and departmental organizations, contributing their voices to community development councils and other important meetings. Over 50 women leaders now participate in community development councils and other meetings and conferences. IEPADES is also facilitating information sharing through exchanges between existing savings groups and new groups that are forming.
Through the "Savings for Change" program, IEPADES is fostering economic empowerment and financial inclusion for women. While there's still a long way to go, IAF grantees are taking positive steps toward a more inclusive and prosperous Guatemala.