If you give a woman a fish, she eats for a day. If you teach her to fish, she can feed herself for a lifetime. But what if she can't afford a fishing rod? What if the pond belongs to someone else?
It is within these deeply rooted disparities that we find the true essence of gender inequality. Empowering women means more than skills training or a mere handout. It necessitates the dismantling of social and economic barriers, granting them full access and agency. Financial inclusion, therefore, becomes the bedrock upon which this vision can be realised.
As we mark International Women’s Day under the theme, Invest in Women: Accelerate Progress, it’s time for a hard look in the mirror and reflect on the glaring issue of gender inequality in financial inclusion and literacy that persists globally.
Consider that women do 2.8 times more unpaid care and domestic work than men, according to the 2023 report by UN Women: Forecasting time spent in unpaid care and domestic work. They face discriminatory laws and norms preventing land ownership in over 90 countries. Moreover, women hold a mere 24.9 percent of parliamentary seats worldwide, highlighting the need for greater representation. Even more troubling is the fact that one in three women will experience gender-based violence in their lifetime.
These sobering statistics tell a story of marginalisation and untapped potential. But women are not inherently disadvantaged. Rather, they are systematically locked out of tools for advancement. Access to financial services is a prime example.
The World Bank in 2017, estimated that 1.7 billion adults globally lacked an account at a financial institution or mobile money provider. Women made up the majority of the unbanked, with a six percent gender gap in developing countries. The Financial Sector Deepening Kenya (FSD) - Fin Access deep dives: Measuring Kenya’s financial inclusion journey research released in 2023, shows the gender disparity in Kenya, whereby only 38 percent of women in Kenya own a bank account compared with 50 percent of men.
Women continue to face barriers that hinder their access to financial resources, leaving them in a perpetual cycle of dependency. It's high time we acknowledge the urgency of addressing these challenges and commit to fostering an environment that empowers women economically.
In Kenya, many women encounter difficulties in opening bank accounts, obtaining loans, and accessing other financial services. This exclusion not only limits their economic potential but also perpetuates a cycle of poverty that affects generations. What does this mean in practical terms? Without savings or credit, women cannot manage household expenses, financial shocks, or invest in education, health, and businesses. Financial access enables resilience and self-reliance. It unlocks opportunities for women to pursue their goals and dreams. With capital and confidence, women become job creators, innovators, and community leaders. Economies grow through their full participation. Prosperity is shared more equally.
The multiplier effect of women's financial inclusion is remarkable. Studies show that women reinvest up to 90 percent of their income into their families, compared to men's 30-40 percent. This ripple effect has a positive impact on the economy, improving the quality of life for all.
Without a doubt, we must break barriers to financial inclusion if we are serious about gender equality and women’s empowerment. Doing so requires coordinated efforts across public and private sectors. Policymakers can mandate women’s access to financial services, prohibit discrimination in lending, and incentivise women’s entrepreneurship.
Women in Kenya, like in many parts of the world, have been actively scaling savings via informal and formal groups, marking a transformative shift in economic empowerment.
This International Women's Day, let us reignite our commitment to tearing down barriers to women's financial participation. We all gain when they can access financial services, grow businesses, control their own money, and invest in their futures.
Women's economic equality is not just a women's issue - it is an everyone issue. Financing women's inclusion and empowerment will yield dividends for generations.
The writer is the Managing Director at Postbank Kenya.
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