Gender and Development

Azerbaijan: Gender Responsive Microfinance

Background & Rationale

In Azerbaijan, levels of women clients of microfinance institutes (MFIs) are low at 40% and female staff of MFIs even lower. Recommendations from donor gender assessments in Azerbaijan include increasing gender sensitivity into activities related to credit, and ensuring better consultation processes. Two problems were raised by the MFIs regarding gender responsiveness in microfinance:

1. Clients often were male due to traditional roles of men dealing with contracts and money.
2. Difficulty of finding women to recruit as field staff.

AMFA confirmed that these two areas are key issues and the microfinance industry, through the association, is ready to address them now.

Expected Outcome

The one-year project would increase the level of institutional gender awareness and participation of women in MFIs as field staff thus enhancing gender responsiveness of MFIs in Azerbaijan.

Activities include (a) conduct of surveys to assess the numbers and levels of women staff at various levels of MFIs and their promotion prospects, collection of data on existing and potential female clients, and credit needs assessment of rural women; (b) training and capacity building for all MFIs on gender issues and (c) mobilization and incentive schemes developed to actively recruit new MFI field staff and clients.

Results to Date

The Azerbaijan Microfinance Association (AMFA) recruited the Gender Research Centre (GRC) to develop a training program for MFI staff on gender concepts, gender division of labor, gender aspects of MDGs, and the gender and microfinance market in Azerbaijan. The training resulted in 15 participating MFIs manifesting their commitment to participate in ADB's loan project, and recruitment of 18 women credit officers. Moreover, newly recruited male and female staff of MFIs underwent gender training and specialized training on gender-relevant technical aspects of microfinance. AMFA provided day-to-day monitoring and counseling to newly recruited female mobilizers and credit officers, conducted Training of Trainers (TOT) on gender and microfinance, and assessed mobilizers' work effectiveness. Feedback from managers and supervisors of MFIs noted satisfaction with the enhanced professional knowledge of new employees. Recruitment of women loan officers apparently increased the number of women clients of MFIs.

Surveys conducted with 15 MFIs revealed their difficulties in hiring and retaining female staff related to frequent field visits that required overtime work; cultural barriers to traveling alone in target sites; insufficient skills and regional knowledge; problems in dealing with male clients; and low salaries. On the other hand, advantages of having female MFI officers included easier access to and business with female clients, positive impact on work environment with higher levels of productivity and efficiency; and increased number of female owned and managed businesses contributing to women's empowerment in society and family livelihoods.

Related Documents

• Final Report
• Case Study