Although financial inclusion is becoming increasingly significant on a global scale, there is still a difference between financial inclusion for men and women, or the so-called gender financial inclusion gap.
According to the 2022 Global Gender Gap Report from the World Economic Forum, it will take an average of 132 years to achieve gender equality worldwide.
The continent of Africa is not an exception. There seem to be a number of causes for this. In many African communities, the woman is in charge of running the home and taking care of the kids while the men manage the family's finances.
Because of their lower educational attainment, women in developing African economies frequently have lower levels of financial literacy. Additionally, in some nations, restrictions imposed by laws and regulations actually prevent women from accessing financial services. These elements contribute to the lack of knowledge and comprehension of financial products and services.
It is significant to remember that these difficulties differ between nations and regions, depending on elements like socioeconomic circumstances, cultural settings, and institutional capabilities.
Ironically, women in Africa can still launch their own enterprises despite a large gender gap in financial literacy.
According to the fifth annual Mastercard Index of Women Entrepreneurs (2021), Sub-Saharan Africa has the highest percentage of female entrepreneurs in the world (26%).
In terms of percentages, Ghana, South Africa, and Botswana are among the countries with the highest rates. Despite these challenges, women who own businesses in Sub-Saharan Africa continue to earn 32% less than their male colleagues, according to a World Bank report.
The lack of finance due to discriminatory policies is one of the main impediments. According to the National Assessment of Women's Entrepreneurship Development in Nigeria, women are very interested in starting their own enterprises but encounter certain obstacles that keep them from establishing and expanding them.
Taking action to eliminate the gender financial inclusion gap is both morally required and practical. A positive return on investment from investing in equal opportunities benefits businesses and boosts the economy.
One can only imagine the economic growth that could be unleashed if more women had access to financial literacy, given the fact that so many of them are business owners who are eager to achieve financial independence.
herefore, it is essential to advance financial inclusion quickly in order to achieve gender equality and sustainable development.
What steps can be made as a result?
There has been some progress. By offering them microcredit and savings options, numerous microfinance organizations in Africa have targeted women in particular.
These organizations have seen the potential in female entrepreneurs and have provided them with financial services catered to their needs, such as group financing techniques.
With local and international firms already proposing creative solutions to address and support the intricate needs of this industry, the private sector is playing a critical role.
By building operations in Nigeria and South Africa, Admirals, one of the top fintech businesses in the world, demonstrated how committed it is to advancing digital financial inclusion in Africa.
The Estonia-based neo-broker offers a variety of digital trading, investing, and financial services in compliance with the licenses it has received from the world's top regulatory organizations.
Admirals prioritize financial education, knowledge-sharing, and literacy as crucial factors in promoting increased access to international financial markets.
Admirals Academy offers access to a variety of clear educational resources and educational materials through its financial literacy project to give clients the information and tools they need to make wise financial decisions.
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