Browsing: Financial inclusion Africa

Financial inclusion for women in Africa remains a challenge. According to a recent African Development Bank report, African women entrepreneurs still face a USD42 billion finance gap. Photo/OECD

The silent struggle: Women entrepreneurs in Africa and the financial divide

Industry and Trade
  • African women entrepreneurs face a staggering $42 billion financing gap.
  • Unfortunately, banks have more stringent loan terms for women-owned businesses.
  • To counter this, Women Creating Wealth (WCW) and Afrishela Fund are providing capital funding options for women in Africa.

Financial inclusion for women in Africa remains a challenge. According to a recent report by the African Development Bank (AfDB), women in Africa running various forms of businesses are facing a staggering $42 billion financing gap.

“Traditional banks often view women-led businesses as high-risk, making loans complicated to obtain and expensive,” AfDB notes in part. Consequently, banks place harder terms for women applying for loans.

“Many women need more business and financial skills to qualify for these loans,” notes AfDB, adding that women also face more stringent legal and regulatory hurdles that further limit the potential of women-owned enterprises.

The AfDB report was shared at a recent workshop held in Tanzania …

Bridging the financial inclusion gap in Africa

Industry and Trade
  • Today, many Africans struggle to manage their finances, often using up their salaries before they even receive them.
  • This struggle is partly due to a failure of financial inclusion, which is a chance for all individuals to access financial tools.
  • Financial inclusion is a means of reducing inequality and bridging economic gaps.

Financial inclusion is a concept that transcends economic borders, embodying the idea that access to financial services is a fundamental human right that can empower individuals to build wealth and improve their lives.

While financial inclusion might appear irrelevant to those who seemingly have access to financial tools, it's imperative to recognize that a significant portion of the global population, particularly in Africa, still faces barriers to formal financial services.

According to the World Bank’s 2021 Global Findex report, up to 38 percent of adults in developing countries remain unbanked.

Financial inclusion means bridging gaps

At its core,…

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India commits $2M to boost Africa’s digital financial inclusion

Banking
  • In 2021, 76 percent of adults had an account at a bank or regulated institution
  • Financing will enable African nations to expand portfolio of digital financial solutions and initiatives
  • The facility will be housed and managed by the African Development Bank,

India will contribute $2 million to the Africa Digital Financial Inclusion Facility (ADFI), in an effort to break the barrier to growth and spur uptake of digital financial solutions.

The facility will be housed and managed by the African Development Bank. It will mainly focus on accelerating financial inclusion in Africa, India said.

India is recognised globally for the success of its digital public payments system. The country’s collaboration with ADFI enables the facility to learn from best practices and help scale up initiative. The program aims to meet the needs of financially excluded and underserved people in Africa.

Africa yet to fully benefit from inclusion

Despite the growing …