Is Cents for Seeds ethical?
Cents for Seeds is our microloan project that offers women everything they need to grow and harvest a crop and earn an income. It is self-sustaining, in that the loan is paid off at the end of the first harvest so that it can be passed on to the next participant the following year. A 30kg loan of seeds will harvest 150kg of seeds on average, enabling them to keep a minimum of 120kg each for ongoing food security and economic profitability, even after they return their principal seed loan, plus interest. Once a woman has successfully participated in the program for five years, we hold a graduation ceremony for them and their village. So far, close to 30,000 women have participated in Cents for Seeds in northern Uganda.
Is it ethical?
In recent decades, microloan projects have emerged as a promising tool for fostering economic empowerment and poverty alleviation, particularly among marginalised communities in developing countries. These projects, often targeting women, aim to provide access to financial resources, skills training, and support networks to enable entrepreneurship, and sustainable livelihoods. While the potential benefits are clear, navigating the ethical landscape of such initiatives is crucial to ensure they genuinely empower the intended beneficiaries without inadvertently causing harm or reinforcing existing inequalities.
In this blog post, we explore the ethical considerations involved in Cents for Seeds and shed some light on how we aim to address them.
“Navigating the ethical landscape of Cents for Seeds is crucial to ensuring it genuinely empowers the women of northern Uganda.”
Context: Women Empowerment in Uganda
Like many other countries in sub-Saharan Africa, Uganda grapples with gender disparities – with women often facing limited access to education, healthcare, and economic opportunities. In such contexts, microloan projects tailored to women can play a vital role in fostering financial independence, decision-making power, and social mobility.
Ethical Considerations:
1. Cultural sensitivity and contextual understanding: Understanding the local culture, norms, and socio-economic context has been vital to the success of Cents for Seeds, particularly at its inception. We recognised that what works in one community may not be suitable for another, and that our work in Uganda needed to be culturally appropriate and respectful of local values.
2. Informed consent and agency: Central to ethical practice is ensuring that participants provide informed consent freely and without coercion. In the case of Cents for Seeds, this meant including transparent communication about the terms and conditions of loans, potential risks, and available support services. Empowering women to make autonomous decisions about their participation is fundamental to upholding their agency and dignity.
3. Risk mitigation and accountability: As an organisation operating in a developing country, it is part of our job to anticipate and mitigate potential risks, including over-indebtedness, default, and exploitation. Transparent and accountable lending practices, coupled with financial literacy training and inclusion in Village Savings and Loans Associations (VSLAs), has enabled participants to make sound financial decisions and navigate challenges effectively. The Love Mercy Uganda team conduct regular monitoring and evaluation to identify and address any adverse impacts promptly.
4. Social impact and sustainability: Beyond any short-term financial gains, the ethical success of Cents for Seeds hinges on its long-term social impact and sustainability. This is the reason we have, for six years now, conducted our Love Mercy Social Impact Reports that monitor the overall wellbeing of participants and their communities in comparison to those not yet in the program. Our reports show that participants have higher levels of wellbeing and report better outcomes than those not yet in the program, demonstrating the positive impact of Cents for Seeds in fostering holistic development and resilience. Over the past year, participants have felt more empowered to financially provide and have greater confidence in their sense of purpose, self-love, and financial literacy skills.
5. Gender equality and social inclusion: Promoting gender equality and social inclusion is a fundamental ethical imperative. When we started Cents for Seeds in 2011, we knew we had to actively address the underlying structural barriers that perpetuate gender disparities, such as unequal access to land, markets, and education. We invited the men to take part in Cents for Seeds when we piloted the project in Barr Village. At first, they were very sceptical of the project, some not agreeing to their wives’ involvement. With time, the men saw the positive changes to the community and came on board. Cents for Seeds was then able to take off in other villages, due to the initial inclusion of men in Barr Village. By prioritising the needs of women, we are working hard to foster a more equitable and inclusive society for all.
“The ethical success of Cents for Seeds hinges on its long-term social impact and sustainability.”
Conclusion
Our Cents for Seeds project holds immense potential for catalysing positive change and promoting economic empowerment for women in northern Uganda. However, we realise this potential requires a nuanced understanding of the ethical complexities involved and a steadfast commitment to the principles of dignity, autonomy, and justice.
By prioritising cultural sensitivity, informed consent, risk mitigation, social impact, and gender equality, we can navigate the ethical terrain effectively, ensuring the project genuinely empowers women and contributes to sustainable development outcomes. Ultimately, the success of Cents for Seeds lies not only in financial metrics, but in the transformative impact it has on the lives of women and their communities.
Thank you for taking the time to read this post. If you would like to be part of the solution and help us to reach 30,000 women by 2025, please consider making a $30 donation today.