Abstract
Aim: This paper provides an overview of the findings of two studies aimed at investigating how microfinance affects Rwandan farmers’ ability to adapt to climate variability.
Situation within the Climate justice scholarship or praxis: It has been suggested that microfinance institutions are well-placed to promote climate change adaptation products and services (Agrawara and Carraro, 2010). However, one of the biggest limitations of microfinance is its actual reach. In general, microfinance tends to benefit the economically active, e.g. members of cooperatives who are living above the poverty line. Loans do not extend to the extreme poor, having negative effects of social equity and upward mobility.
Methodology: The two studies were conducted in rural areas of Rwanda between 2019 and 2021.The first pilot study was carried out in July 2019 in Huye (Southern) and Rubavu (Western) districts. The second follow-up study is still ongoing and is being carried out in the Gisagara (Southern), Ngoma (Eastern), Musanze (Northern province) and Kigali districts. Both studies adopted a qualitative approach based on semi-structured interviews, surveys, transect walks and participatory mapping.
Results:
The two studies found that micro-loans provided by Urwego Bank had to an extent enabled some farmers to adapt to certain climate impacts. However, farmers outside co-operatives and savings groups (membership of which is a requirement for obtaining a loan) were at risk of missing these adaptation benefits due to lack of access to finance and training. Furthermore, questions were raised over young people unable to find capital to join such groups, women unable to take loans independently of their husbands, and farmers with smaller hillside plots not targeted by the microfinance loans products. These inequities in access have potential to contribute to widening social inequity and increasing climate resilience for some farmers while leaving other, less wealthy producers behind.
Situation within the Climate justice scholarship or praxis: It has been suggested that microfinance institutions are well-placed to promote climate change adaptation products and services (Agrawara and Carraro, 2010). However, one of the biggest limitations of microfinance is its actual reach. In general, microfinance tends to benefit the economically active, e.g. members of cooperatives who are living above the poverty line. Loans do not extend to the extreme poor, having negative effects of social equity and upward mobility.
Methodology: The two studies were conducted in rural areas of Rwanda between 2019 and 2021.The first pilot study was carried out in July 2019 in Huye (Southern) and Rubavu (Western) districts. The second follow-up study is still ongoing and is being carried out in the Gisagara (Southern), Ngoma (Eastern), Musanze (Northern province) and Kigali districts. Both studies adopted a qualitative approach based on semi-structured interviews, surveys, transect walks and participatory mapping.
Results:
The two studies found that micro-loans provided by Urwego Bank had to an extent enabled some farmers to adapt to certain climate impacts. However, farmers outside co-operatives and savings groups (membership of which is a requirement for obtaining a loan) were at risk of missing these adaptation benefits due to lack of access to finance and training. Furthermore, questions were raised over young people unable to find capital to join such groups, women unable to take loans independently of their husbands, and farmers with smaller hillside plots not targeted by the microfinance loans products. These inequities in access have potential to contribute to widening social inequity and increasing climate resilience for some farmers while leaving other, less wealthy producers behind.
Original language | English |
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Publication status | Published - 22 Sept 2021 |
Event | 2nd World Forum on Climate Justice - Glasgow, United Kingdom Duration: 21 Sept 2021 → 23 Sept 2021 https://climatejusticeforum.org/ (Link to conference website) |
Conference
Conference | 2nd World Forum on Climate Justice |
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Abbreviated title | WFCJ 2021 |
Country/Territory | United Kingdom |
City | Glasgow |
Period | 21/09/21 → 23/09/21 |
Internet address |
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Keywords
- climate change
- climate justice
- Rwanda