Financial inclusion refers to all initiatives that make formal financial services Available, Accessible and Affordable to all population segments. This requires particular attention to specific portions of the population that have been historically excluded from the formal financial sector either because of their income level and volatility, gender, location, type of activity, or level of financial literacy. In so doing, there is a need to harness the untapped potential of those individuals and businesses currently excluded from the formal financial sector or underserved and enable them to develop their capacity, strengthen their human and physical capital, engage in income-generating activities, and manage risks associated with their livelihoods.
What we mean by financial inclusion of women throughout the decade is to seek strengthened financial services and capacity building, especially for women living in rural areas, to gain access to technology and to use it to increase productivity in all industrious sectors and with tailor-made financial products for the women and have access to formal as well as reliable means to save, access and borrow money. Studies have shown that women invest 70 percent of their financial resources in the social welfare cost of the family, particularly education and the health of children, while human investment ranges from 30 percent to 40 percent.
Going forward, women and girls are keen on not only managing funds at the various public and private institutional set-ups but also owning the funds. There is nothing small about women, therefore, we are thinking big and looking at how women can have more control over their earnings and savings as well as managing and owning large amounts of funds.
We must be able to make significant progress in improving the lives and livelihoods of millions of women and young girls around the continent, and that means that we are leaving no one behind because when you empower a woman, you empower the family and the community at large. There is evidence of that trickledown effect. For that reason, in February 2020, African Women Leaders Network launched the African Women Leadership Fund, demonstrating their commitment to move from commitment to action. With a target of $100 million, the launch pooled over $20 million from the leaders present, the private sector, and more commitments will see that fund grow.
According to the World Bank, more than 70 percent of African women are excluded by financial institutions or cannot receive financial services, such as a savings or current account, loans, credit and other institutional services, with adequate conditions to meet their needs.
The overall goal of this new African Women’s Decade is that every woman must be able to work, be paid and participate in her country’s economy. This will involve examining the regulatory, legislative and policy context to determine the changes needed to foster the financial inclusion of women and assist financial institutions in adopting approaches tailored for them as a separate market segment.
Furthermore, as declared by the AU Heads of State and Government during the 33rd AU Summit in February 2020, one of the main objectives of this new African Women Decade is the development of market access by enhancing new credit solutions for women, generating access to infrastructure in downstream processing and distribution, and training them in agro-industrial technology.
Finally, in addition to access to financial products, technologies and services, achieving financial inclusion for women would require overcoming sociocultural norms and gender barriers.
