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Investing in Women and Girls

If I told you there was an investment that had very little risk and a high rate of return, chances are, you would want to know more. You’d probably be surprised to find out that this investment is loaning money to women and girls living in poor countries.

Time and time again, making small loans to women and girls living in the developing world has proven to be a productive investment, building financial security not just for individuals but for entire communities and countries.

The concept is called microfinance, and it has been used effectively in many parts of the world, especially with women, who have historically been denied credit. It starts small with micro-loans, often as little as ten or twenty dollars, used to help fund a small business such as a vegetable stand or sewing shop. Once the loan is repaid with interest, a larger amount can be borrowed and then repaid again. As the proceeds from the business come in, the loan recipient keeps growing her enterprise and even employing others.

Although it might sound risky to invest in women who have so little, history has shown a very high rate of repayment. When women are given a chance to support themselves and their families, they rise to the occasion. Some even form “trust groups” to support one another and help cover individual loans in times of sickness.

The parable of the talents comes to mind in connection with how microenterprise works. Rarely do women just keep the money they borrow. They are so happy to be given a chance that they usually grow their enterprises at surprisingly rapid rates. And they often invest in the education and health of their children, effectively breaking the cycle of poverty in their families.

Microfinance is more than a financial concept. It is believing in individuals who have had few opportunities in life. It is honoring their God-given potential by offering not a handout but a chance to create a better life for their families. And it is a way to give dignity to women who too often have lived with so little.