Africa: Gender gap in access to finance for women

Access to finance for women in Africa has long been a challenge, with the gender gap in financial services widening compared to other regions. The lack of access to finance is fueled by various factors, including the formalization of the financial sector and the historical ownership of collateral like land primarily by men. Rudo Kayombo, Regional Director for Africa at BRAC International, highlighted the key barriers that women face in accessing finance, such as illiteracy, limited physical infrastructure for financial services, and the need for basic and financial literacy. Bridging the gap in financial literacy is crucial, with initiatives like Village Savings and Loans Associations (VSLAs) playing a significant role in providing accessible financial education. Kayombo emphasized the importance of integrating financial literacy into development initiatives to reach women effectively and empower them to access higher levels of financing. To support women entrepreneurs in Africa, Kayombo emphasized the need for integrated solutions that address the holistic needs of communities. Organizations like BRAC International have observed the value of integrated social development programs that offer health services, education, and financial literacy in addition to financial services. While government involvement is crucial in integration efforts, Kayombo also highlighted the role of the private sector in extending financial services, especially through digitalization. Private sector partnerships can facilitate the delivery of financial services and value chain development, ultimately benefitting women-owned businesses. Digitalization presents opportunities for financial inclusion, but the gender digital gap remains a challenge. Kayombo suggested providing mobile phones through loans and partnering with solar providers to ensure connectivity for women in underserved areas, enabling them to access mobile money platforms. Overall, addressing the gender disparity in access to finance for women in Africa requires a comprehensive approach that combines financial and social development initiatives. By integrating financial literacy, leveraging private sector partnerships, and bridging the gender digital gap, women can overcome barriers and thrive as entrepreneurs in the region.