Including Men in a Female Financial Model: An Analysis of Informal Grassroots Financial Associations

Abstract

There is an increasing push among development actors to engage men in gender-focused development efforts. This is also observed in initiatives organizing economically poor individuals into groups where members save and borrow among each other. This study investigates the influence of male membership on the savings group’s profit-generating capacity. Further, the study aims to understand if this relationship is moderated by the level of gender equality in the country where the group is located. Drawing on random effects regression analysis on a sample of data on 81,853 savings groups from 30 African countries covering the period 2010 to 2017, the results show that the group’s profit-generating capacity reduces as the percentage of male members increases. Further, gender inequality in the countries where these groups are located worsens the observed negative relation. The findings highlight the need to thoroughly evaluate policy initiatives aimed at such savings groups to avoid harming core group functions.