Did you know that at the current rate of progress, it would take the world roughly FIVE generations from now to reach full gender parity? We simply do not have the time to wait, which is why this year’s theme for International Women’s Day is deeply important: Accelerate Action.
This theme highlights the need for quick and decisive action to reach gender equality. It encourages a heightened sense of urgency and momentum in tackling the systemic barriers and biases that women encounter, both in their personal lives and professional careers.
Every year, International Women’s Day is an opportunity to not only celebrate how far women’s rights and gender equality has come, but also to recognize what still needs to be done. According to the United Nations, women make up 70% of the world’s 1.3 billion people in poverty. Of those displaced by climate-related disasters, 80% are women and girls, which amplifies already existing gender inequalities.
Additionally, “70% of female entrepreneurs report insufficient access to the capital needed to grow their businesses. We aim to help solve this issue through the loans provided by microfinance institutions in which we invest,” says Sascha Noé, Fund Manager at ASN Impact Investors, managing its ASN Microkredietfonds.
At Triple Jump and ASN Impact Investors, we continue our commitment to gender equality and female empowerment, through investing in microfinance institutions (MFIs) and providing responsible financial services to underserved women, women-owned, and women-led businesses in developing markets.
For women in particular, access to credit, savings, and financial literacy programs through MFIs enables them to overcome traditional barriers to entrepreneurship, such as limited access to formal financial services and societal constraints. It offers them more financial independence, increased empowerment and leadership, improved livelihoods, and enhances gender balance within financial institutions themselves.
Additionally, women are not just a good investment for microfinance institutions, they are a gamechanger. Mahrokh Humayun, Financial Institutions Portfolio Manager at Triple Jump says “Empowering women with financial resources is strategic and decades of research tell a powerful story. Women maintain repayment rates at a remarkable 97%, far surpassing their male counterparts, ensuring financial stability and security for lenders. Their businesses are resilient and often address critical local needs, fostering sustainable economic growth. Additionally, women reinvest up to 90% of their earnings back into their families and communities, compared to just 30-40% for men. This reinvestment translates to better education, improved healthcare, and increased household savings, creating a cycle of positive, long-lasting change.
Why are women like that? In many societies, women are often responsible for managing household finances, making them naturally adept at budgeting and financial planning. Women generally prioritize the well-being of their families and communities and have a collaborative approach to build strong social support networks. They also often face significant social and economic challenges, which foster resilience and adaptability.”
Although women are still a very vulnerable and marginalized group, when they are supported and empowered, we not only see the individual benefits, but we see the ripple effect through their communities and greater society as a whole.
For the ASN Microkredietfonds, the percentage of women lenders is around 84%, which Triple Jump and ASN Impact Investors are proud to note is above the industry average and demonstrates a strong commitment to gender-focused financial inclusion. Globally, women make up around 57% to 61% of microfinance clients, and many MFIs prioritize women borrowers because of their proven track record of reliability, community reinvestment, and positive social impact. Mahrokh Humayun states that ASN IMpact Investors has internalized this and therefore, this high percentage is a result of both targeted fund management and the deliberate selection of MFIs that focus on empowering women through microfinance.
Sascha Noé explains how the fund has built a large and reliable female-centric portfolio: “We do a thorough screening, including field-visits, on the MFIs before the fund can invest in them. The potential investee has to make clear how they are aligned with the Universal Standards for Social and Environmental Performance Management. These standards help us assess how the MFIs put their clients at the center of all strategic and operational decisions. We not only screen on how committed the MFIs are to client protections rights, but we also look at percentage of female clients, percentage of female employees of the MFIs and percentage of female board members.”
One of the investees is Annapurna, an MFI in India with a mission to empower 2,500,000 women and households and improve their economic security by 2027. Their aim is to bring recognition, legitimacy, respect and opportunity for 120,000 microenterprises, and to establish a self-sustainable and economically empowered rural, tribal & sub-urban society.
Ms. Purabi Bharadwaj, Vertical Head-Foreign Institution of Annapurna, said “Joining Annapurna was a turning point in my life. Over the years, I have not only grown professionally but have also witnessed the deep impact of our work on countless lives. Annapurna’s commitment to financial inclusion has empowered women, strengthened small businesses, and transformed rural communities. Being part of this journey has given me a sense of purpose and fulfillment, knowing that my work contributes to creating opportunities for those who need them the most. Annapurna is not just an organization; it’s a mission that changes lives—including mine.”
Another MFI ASN Impact Investors has invested in, MBK Ventura in Indonesia, is also a successful microfinance institution focused on empowering women and reducing the vulnerability of low-income households. They do this by providing access to formal and cost-effective working capital to low-income women, particularly those in rural areas and small towns.
These loans, available only to women, not only provide working capital for women-led businesses, but with their increased income these women are able to cover educational costs for their children, gain access to additional sanitation and home improvement loans, and improve their financial literacy skills and self-confidence.
“MBK has been implementing the Grameen Bank method for 20 years and we are now reaching women on Sulawesi Island, after Java, Sumatera and Bali islands,” says MBK co-founder and director Liz Sweeting, “Staff go in pairs by motorbike to groups of our clients to deliver our services, every week, in the rain and in the hot sun. We deliver to their doorstep. We already have about 100 long-term clients who have graduated from group loans to an individual loan and employ staff for their small businesses. We are proud of our positive impact on the lives of our clients and their families.”
As previously mentioned, “Investing in women is also attractive from an investment perspective,” says Sascha Noé, “Millions of women in developing countries are micro-entrepreneurs running small to medium businesses, and that number continues to grow. This presents a great opportunity for investors! Research, as well as our own experience, shows that women tend to be better borrowers. All in all, they represent a large and reliable customer base on which we can build a growing and well-performing portfolio.”
Through microfinance we have not only seen increased resilience and economic empowerment for women, but it has also been linked to improvements in women’s overall well-being, including increased self-esteem, reduced vulnerability to domestic violence, and greater access to social networks and support systems. Overall, the impact of microfinance on women’s economic empowerment is far-reaching and transformative.
Every dollar invested in a woman’s potential is a powerful investment in a brighter, more prosperous future for everyone. Their success isn’t just a success for them – it’s a win for everyone.
As once said by Gloria Steinem, world-renowned feminist and gender equality activist, “The story of women’s struggle for equality belongs to no single feminist, nor to any one organization, but to the collective efforts of all who care about human rights.”
On this International Women’s Day, we continue to honor the great achievements of women, and embrace the resources and systems, such as microfinance, that continue to empower and uplift women around the globe. Collectively, lets continue to pave a path forward for women everywhere.
