Financial inclusion is no longer a niche concern; it is a global economic imperative. In the past decade, the narrative has evolved from viewing access to finance as a tool for personal advancement to recognising it as a lever for national and international economic development. The World Bank’s Global Findex Database 2024 shows that globally, 69% of adults, or 3.8 billion people, now have an account at a bank or mobile money provider, a crucial step in escaping poverty. This is up from 62% in 2014 and 51% in 2011. This milestone, while impressive, conceals entrenched inequalities. In developing countries, a 6% gender gap persists in account ownership, and women are significantly more likely than men to remain unbanked.
The International Monetary Fund (IMF) underscores the economic gravity of these disparities. It is highlighted that reducing gender gaps in labour force participation and financial inclusion could yield GDP gains of up to 35% in countries with large disparities. For example, gender parity in economic participation could add $28 trillion or 26% to global GDP annually, according to a McKinsey Global Institute estimate. The World Economic Forum further projects that bridging gender financial gaps could increase per capita income by 20% in emerging markets over the next decade. This underscores the transformational potential of inclusive financial ecosystems.
READ ALSO: Democracy and Gender: Will Africa Ever See Equal Political Representation?
Africa’s Financial Inclusion Landscape: A Mixed Outlook
Sub-Saharan Africa presents both the starkest challenges and the most promising opportunities for gendered financial inclusion. According to the World Bank, as of 2024, only 37% of women in Sub-Saharan Africa had access to a formal financial account, compared to 48% of men. While mobile money has revolutionised access, especially through platforms like M-Pesa in Kenya and MTN Mobile Money in West Africa, the reach of these innovations remains uneven.
Female entrepreneurs constitute more than 58% of Africa’s self-employed population yet face disproportionate barriers to financing. Women receive only about 3% of total start-up financing in Africa. Consequently, the continent is forfeiting significant economic growth. A study by McKinsey Africa notes that closing the gender gap in entrepreneurship and financial services could unlock up to $300 billion annually in GDP gains.
Multiple structural factors contribute to this gap. Beyond social norms and legal limitations, women often lack the collateral or credit history required by traditional banks. The digital divide exacerbates the issue: GSMA’s 2023 Mobile Gender Gap Report shows that women in Sub-Saharan Africa are 19% less likely than men to own a smartphone and 26% less likely to use mobile internet, restricting their ability to access digital financial services.
Kenya: Pioneering Mobile Financial Empowerment
Kenya remains a global model for mobile financial inclusion. M-Pesa, launched in 2007, has enabled over 90% of Kenyan adults to access financial services, with 66% of women holding mobile money accounts. A study by MIT and Georgetown University found that M-Pesa lifted 2% of Kenyan households out of poverty, and women-headed households were most positively impacted. It also facilitated a shift from subsistence agriculture to business and retail, enabling women to engage more confidently in economic activities.
Nigeria: Digitising Women’s Access to Credit
In Nigeria, efforts to digitise financial services are bearing fruit. The Central Bank of Nigeria’s National Financial Inclusion Strategy (revised in 2018) targets 95% inclusion by 2024, with a special emphasis on women. Initiatives like the “Shared Agent Network Expansion Facility” (SANEF) aim to deploy 500,000 agents across rural communities, a move that has disproportionately benefitted women entrepreneurs. Moreover, fintech firms like Paystack and Flutterwave are tailoring services to address the needs of female-led SMEs, improving access to working capital and payments infrastructure.
Rwanda: A Policy-Driven Approach
Rwanda has taken a policy-first approach to gender inclusion. The country ranks 6th globally in the World Economic Forum’s 2023 Global Gender Gap Index. Rwanda’s Financial Sector Development Program II includes gender equality as a core pillar. Between 2016 and 2021, women’s access to financial services grew from 36% to 63%, thanks to targeted government interventions and digital ID programs that help women verify their identity and build financial profiles.
Critical Barriers to Overcome
Despite such progress, substantial roadblocks remain. Cultural norms and gender biases continue to limit women’s financial autonomy. In countries like Sudan and Chad, women still require permission from a male guardian to open a bank account. Across Africa, less than 15% of land is owned by women, restricting their ability to offer collateral for loans.
Digital illiteracy is another barrier. UNESCO estimates that nearly 15% of adult women in Sub-Saharan Africa are digitally illiterate. Coupled with inadequate infrastructure, in many rural areas, mobile networks and banking agents are scarce; this creates a double bind of exclusion.
The Role of Financial Institutions and Policy Makers
To address these challenges, financial institutions must shift from a product-centric to a user-centric model. Financial products must be reimagined to suit women’s needs, particularly those in informal sectors. Innovations like group lending, village savings and loan associations, and mobile-based microinsurance have shown promise. The AfDB’s Affirmative Finance Action for Women in Africa (AFAWA) initiative, which seeks to unlock $5 billion in credit for women-led businesses by 2026, is a critical step forward.
Governments must also strengthen gender-sensitive financial regulation. This includes gender-disaggregated data collection, simplifying KYC (Know Your Customer) processes, and creating inclusive financial policies. Partnerships with civil society, fintech, and development finance institutions can scale interventions rapidly and sustainably.
Realising the $300 Billion Opportunity
Financial inclusion is not merely a question of access; it is a matter of economic justice and strategic growth. Africa cannot afford to leave half of its population financially sidelined. With women controlling up to 70% of informal trade in some African countries and contributing up to 90% of food production in rural areas, their inclusion is critical to achieving SDG targets and the African Union’s Agenda 2063.
Closing the financial inclusion gap would transform the continent. The World Bank, IMF, and AfDB are aligned in projecting multi-billion dollar gains, higher household income levels, more resilient economies, and stronger democratic outcomes. When women are empowered financially, families are healthier, children are better educated, and communities thrive.
The momentum is there. The solutions are within reach. But the will to implement and scale them must match the urgency of the challenge. Africa’s $300 billion opportunity lies not in new discoveries but in removing the shackles of systemic exclusion. Empowering women financially is no longer optional; it is the most direct path to inclusive, sustainable prosperity.
