Exploring investment practices of persons with disabilities in informal microfinance groups: the case of selected disability groups in Ibanda district, Uganda

Abstract

Access to informal micro finance institutions for the poor and marginalized is critical in poverty reduction. However, most persons with disabilities have no or limited access to informal micro finance institutions due to a myriad of barriers (WHO, 2015). Anecdotal evidence shows that persons with disabilities periodically consume their savings and do not invest in ventures with financial benefits and such practices may not contribute to poverty reduction (Nuwagaba, et al, 2017). Most persons with disabilities encounter difficulties running their businesses. Persons with disabilities are perceived by ordinary members and informal micro finance institutions as unable to return the borrowed money (Musinguzi, 2019). The study aimed at exploring the investment practices of persons with disabilities who save and get loans from informal micro finance groups. The study objectives were threefold: To explore the perception of persons with disabilities regarding investment, saving and borrowing from informal micro finance groups, analyze what influences persons with disabilities investment choices as individual and as group members of informal micro finance, and to explore how persons with disabilities acquire knowledge and skills they use while investing resources obtained from informal micro finance groups. The study employed a qualitative research approach deploying a case study design. Participants of the study included: People without disabilities and persons with physical, visual, hearing, disabilities who are members of informal micro finance groups. The study found out that, the unfavorable policies imposed by informal micro finance institution on failing to pay the borrowed funds make persons with disabilities develop a negative attitude towards their finances. Participants reported that, failure to refund the loan informal micro finance institution sells their property and others are imprisoned. Irrespective of the unfavorable policies, persons with disabilities have a positive attitude towards saving and borrowing from IMFI because of realized benefits. They reported that, through groups they have improved their savings, businesses and can now live an independent life. The persons with disabilities because of mobility and communication challenges prefer to save and invest alone. They prefer to work from or near their home to ease accessibility. However, the persons with mild disabilities prefer to work in groups with other ordinary persons due to benefits like big capital, loss sharing and support persons. Findings too reveal that, most persons with disabilities do not regularly attend group meetings, training and workshops due to their unattended needs like unmodified environment, lack of assistive devices and sign language interpreters. This leads to limited knowledge and skills in income generating activities. The little knowledge used in their business activities is acquired from informal micro finance trainings, community-based rehabilitation training and home learnings. In conclusion, there is a need for Government through the Ministry of Gender, Labour and Social Development to work with community rehabilitation workers, community development officers and families of persons with disabilities for socio-economic empowerment. Based on the study finding, there is a need for awareness raising by disability stakeholders on what is disability, community roles responsibilities and informal micro finance opportunities. Persons with disabilities need to be supplied with assistive devices to ease mobility and communication in order to access informal micro finance services and start income generating activities for independent living.