Microfinance Services and Women's Empowerment in the Democratic Republic of Congo: A Case Study of FINCA and Hekima Microfinance

Abstract

Microfinance has emerged as a vital instrument for promoting economic development and alleviating poverty, particularly in developing countries. In the Democratic Republic of Congo (DRC), where socio-economic challenges are prevalent, microfinance services play a crucial role in enhancing the livelihoods of marginalized groups, especially women. Women in the DRC face significant barriers to accessing financial resources, which limits their ability to engage in entrepreneurial activities and contribute to their households and communities. Microfinance institutions (MFIs) like FINCA and Hekima have been instrumental in addressing these challenges by providing women with access to credit, savings, and financial education. However, few is known about mobility, economic securities and household decisions empowerment by using Finca and Hekima microfinances as case study. The study was guided by the agency theory. The study adopted a descriptive survey design to examine the impact of microfinance services on women's empowerment in the Democratic Republic of Congo (DRC), specifically focusing on the roles of FINCA and Hekima Microfinance. The research adopted quantitative data analysis, involving questionnaires of women beneficiaries to assess changes in their economic status, decision-making power and social standing. The target population was 1676 members from FINCA and Hekima MFIs. A sample of 323 respondents was determined using Slovin formula. The study used questionnaires to collect data. The results were analyzed by using descriptive, bivariate and multivariate analysis using SPSS Version 25. The findings indicate that women beneficiaries of FINCA and Hekima perceive the loans and services provided by these microfinance institutions as significantly beneficial to their financial empowerment and overall well-being. Notably, 48.8% of respondents strongly agree that the loan received has positively impacted their financial situation, resulting in a mean score of 4.44 (SD = 0.585). Additionally, 52.0% feel more empowered to make financial decisions post-loan, with a mean of 4.41 (SD = 0.676). The accessibility and user-friendliness of the services were affirmed by 47.6% of respondents who strongly agreed, achieving a mean score of 4.44 (SD = 0.564). Furthermore, 48.0% reported an increase in business income since obtaining the loan (mean = 4.42, SD = 0.609), and 56.3% believe that access to microfinance is essential for women’s empowerment in their community, resulting in the highest mean score of 4.54 (SD = 0.552). The findings reflect a strong positive sentiment towards the support received, with 52.4% feeling supported by the staff, leading to a mean score of 4.39 (SD = 0.707). In conclusion, the study highlights the significant positive impact of microfinance services provided by FINCA and Hekima on the financial empowerment of women in Congo, underscoring the critical role these institutions play in improving their economic situations. It is recommended that FINCA and Hekima continue to enhance their training programs and support services while ensuring the accessibility of their financial products to further empower women and strengthen their communities.