In communities across Aotearoa and around the world, a quiet revolution is transforming lives – one small loan at a time. It’s called microfinancing, and for thousands of women, it’s the bridge between a dream and a thriving small business. Matthew Tukaki and Mary Los’e are hosting a new show called Nga Pakihi Te Moana, a collabration between the Pacific Business Trust and Waatea. In Episode One they look at the impact and opportunity being bought to Tongan Wahine around the concept of microfinancing. Matt and Mary korero with Tui and her Mum about the tradition of Tapa and turning it into opportunity to share tradition through products onto the burgeoning tourism sector:
What is Microfinancing?
Microfinancing is the practice of providing small loans, savings accounts, and other basic financial services to people who may not have access to traditional banks. These are often women, rural whānau, or low-income entrepreneurs who have the passion and ideas but lack collateral or credit history.
Unlike large commercial loans, microfinance focuses on empowerment and community development, helping individuals start or grow small enterprises – from sewing collectives and catering businesses to market stalls, eco-tourism ventures, and digital startups.
Why Women?
Globally, women make up the majority of microfinance clients. The reason is simple: when women have financial independence, entire communities benefit.
-
Women reinvest up to 90% of their earnings into their families and communities.
-
Access to finance boosts confidence, leadership, and social inclusion.
-
Supporting women’s enterprises contributes to whānau stability and intergenerational change.
For Māori and Pasifika women in particular, microfinance can align closely with kaupapa Māori values – collective wellbeing, manaakitanga, and whanaungatanga – turning entrepreneurship into a tool for uplifting the hapori (community).
Image: HM Queen Nanasipau’u with participants and facilitators of the Ngatu Workshop. Pea, Tonga. Photo: Matangi Tonga.
How It Works
Microfinance institutions (MFIs), credit unions, or community-based lending circles provide loans that can range from a few hundred to a few thousand dollars. In some cases, women form lending groups, supporting one another through mentoring, shared accountability, and collective repayment.
The model is simple but powerful:
-
Apply for a small loan to start or expand a business.
-
Receive financial literacy training or mentoring.
-
Repay the loan in small, manageable instalments.
-
Build credit history and independence for future growth.
Many programmes also link women to business development support, such as workshops on digital marketing, accounting, or product design – giving them the tools to grow sustainably.
Success Stories
Across the motu, small microfinance-backed businesses are already making a difference. From wāhine running online clothing brands and catering ventures, to home-based wellness and rongoā (traditional healing) services — these are enterprises born from determination, not wealth.
One local example is a group of Māori mothers in Northland who pooled microloans to start a collective kai business, selling preserves, baking, and kai māori at community markets. Within a year, they were employing two part-time staff and contributing profits to a local kura kaupapa.
Beyond Money: Building Confidence and Community
For many women, microfinancing is not just about capital – it’s about believing in their own capability. It opens the door to leadership, innovation, and participation in economic life.
When women succeed in business, they inspire others. They create role models for their daughters, show their sons the value of equality, and strengthen their communities from the ground up.
