Barriers to microcredit for disabled persons: Evidence from economically active persons in Uganda

Leif Atle Beisland; Roy Mersland

doi:10.3362/1755-1986.2012.003

Barriers to microcredit for disabled persons: Evidence from economically active persons in Uganda

Prior research has identified five barriers hindering disabled persons’ access to microcredit: exclusion by staff; exclusion by non-disabled members of credit groups; self-exclusion; exclusion by credit design; and exclusion by the disability itself. This study applies survey data to examine which barriers disabled persons themselves consider to be the most important in Uganda. The survey covers disabled persons with some kind of existing economic activity and is thus not representative of all disabled persons in the country. The data show that exclusion by credit design is the most relevant obstacle from the perspective of the disabled person. The study suggests that microfinance institutions (MFIs) should revise their credit products and make them more disability-friendly to reach out to more disabled customers. These disability-friendly products may also help the MFI to reach other poor and discriminated groups.

Beisland, L.A. and Mersland, R. (2012) ‘The use of microfinance services among economically active disabled persons: Evidence from Uganda’, Journal of International Development [website], Volume 24, Issue Supplement, pp. 69-83, January 2012, http://dx.doi.org/10.1002/jid.1720

Bwire, F.N., Mersland, R. and Mukasa, G. (2009) ‘Access to mainstream microfinance services for persons with disabilities: Lessons learned from Uganda’, Disability Studies Quarterly 29, Issue 1 <http://dsq-sds.org/article/view/168/168≯ [last accessed 31 January 2012] http://dsq-sds.org/article/view/168/168

Cramm, J.M. and Finkenflugel, H. (2008) ‘Exclusion of disabled persons from microcredit in Africa and Asia: A literature study’, Asia Pacific Disability Rehabilitation Journal 19: 15-33.

Handicap-International (2006) Good Practices for the Economic Inclusion of Persons with Disabilities in Developing Countries, Handicap International, Paris.

ILO (2002) Disability and Poverty Reduction Strategies: How to Ensure that Access of Persons with Disabilities to Decent and Productive Work is Part of the PRSP Process, International Labour Organization, Geneve, Switzerland.

Lewis, C. (2004) ‘Microfinance from the point of view of women with disabilities: Lessons from Zambia and Zimbabwe’, Gender and Development 12: 28-39, http://dx.doi.org/10.1080/13552070410001726496

Martinelli, E. and Mersland, R. (2010) ‘Microfinance for persons with disabilities’, in T. Barron and J.M. Ncube (eds), Poverty and Disability, Leonard Cheshire Disability, London.

Simanowitz, A. (2001) ‘Thematic report No. 4: Microfinance for the poorest: A review of issues and ideas for contribution of Imp-Act’, in Improving the Impact of Microfinance on Poverty, Imp-Act, Institute of Development Studies, Sussex, UK.

United Nations (2007) ‘Mainstreaming disability in the development agenda’, in Commission for Social Development, United Nations, New York.

United Nations (2008) Convention on the Rights of Persons with Disabilities, United Nations, New York.

WHO/World Bank (2011) World Report on Disability, WHO Press, Geneva, Switzerland.