Rédaction Africa Links 24 with Ezekiel Oyero
Published on 2024-04-03 22:06:26
Access to credit for women in Nigeria is a pressing issue, with only six percent having access despite progress in overall financial access. The Women’s World Banking group recently launched a Digital Credit Activation Toolkit in Lagos to address this challenge. This toolkit aims to help financial service providers offer credit options focusing on empowering low-income women.
Formal finance, sourced from banks and other institutions, remains a challenge for many in Nigeria, especially women. The toolkit provides actionable insights in three key phases: Assess, Adapt, and Roll Out. By using digital credits, financial institutions can potentially reach 75 percent of underbanked women in the country.
Ade Ashaye, the regional head for Africa at Women’s World Banking, emphasized the organization’s goal of providing access to financial tools for all women to achieve their goals. Through their 10-year strategy, they aim to assist 100 million women by 2027. In Nigeria, there are approximately 23 million women micro-entrepreneurs facing barriers to accessing credit, resulting in a significant gender gap in favor of men.
Barriers to accessing credit for women in Nigeria include constraints such as lack of physical collateral, resulting in less favorable financial terms and limited access to finance. The group highlights the importance of addressing these barriers, including limited awareness of credit products, low trust and risk aversion towards digital loan offerings, and inadequate business skills and financial literacy among women.
Women in Africa and globally also face challenges in accessing credit compared to men, as reported by the World Bank. Despite nearly half of the world’s population being women, only 28 percent of women aged over 15 have accessed credit, indicating a significant gap. Formal women-owned enterprises account for 23 percent of MSMEs, contributing to a substantial finance gap.
Women in Africa exhibit a high rate of entrepreneurship, reinvesting income in education, health, and community development. The group emphasizes the benefits of financial platform loans for women, including accessibility, financial literacy, empowerment, and business capital growth. With 69 percent of adult women in Africa owning mobile phones, there is potential for leveraging digital solutions to bridge the financial inclusion gap.
In conclusion, addressing the gender gap in financial access is crucial for empowering women in Nigeria and globally. The initiatives and insights provided by organizations like Women’s World Banking play a vital role in advancing financial inclusion and economic empowerment for women. By overcoming barriers to credit access, women can unlock opportunities for business growth, community development, and personal advancement.
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