Women entrepreneurs hold the potential to transform Africa’s economic future. Across the continent, women-owned businesses are creating jobs, lifting families out of poverty and reshaping communities, thanks to their resilience, creativity, and belief in succeeding against all odds.
Justina Opit, the CEO of Omega Foods in Zambia, is just one example.
“I created Omega Foods because I saw an opportunity. It wasn’t only my son that needed healthy grain – there were so many women out there who also wanted to feed their children. I started out selling in markets. My dream is to run a multi-million-dollar business,” she reflects with pride.
Today, more than one in four African women starts or manages a business. Women-owned businesses are vital drivers of economic development and job creation – and because women typically reinvest up to 90% of their income in the education, health and nutrition of their family and community, they can transform societies.
Follow us on WhatsApp | LinkedIn for the latest headlines
The problem, as Justina discovered, is that women don’t have the same access to finance as men.
“When I wanted to grow, I went to the bank and asked for a loan, and they wouldn’t give me one, because I didn’t have any accounts or financial history,” she recalls.
In many communities, women entrepreneurs remain excluded from formal financial services. Despite being enterprising and hardworking, they struggle to secure financial backing. Unable to own property, many lack the fixed collateral banks require to provide loans.
Multiple barriers – including the high cost of financial services and a lack of financial education – are holding women from growing successful, sustainable businesses.
A new partnership will boost women entrepreneurs’ financial inclusion
The African Development Bank (AfDB), which provides finance to governments and companies, and the Alliance for Financial Inclusion (AFI), a global network of central banks and financial regulators, are working together to close the finance gap for Africa’s female entrepreneurs.
In 20 African countries, AFI and the AfDB’s Affirmative Finance Action for Women in Africa program (AFAWA) are studying the barriers faced by women entrepreneurs when seeking access to finance. They are working with policymakers, financial regulators, and key national stakeholders to design and implement policies that make it easier for women to access financial services.
Over the next two years, AFI and AfDB will publish a series of case studies showcasing the impact of smart financial inclusion policies. There’s already compelling evidence to share.
In Zimbabwe, 83 percent of women are now financially included – a significant increase from 68 percent in 2014. The country’s first National Financial Inclusion Strategy (NFIS) ,which ran from 2016 to 2020, focused on expanding access to financial services for marginalized populations, including women and MSMEs. The Reserve Bank of Zimbabwe played a key role by:
Today, Zimbabwe’s women entrepreneurs can access tailored banking products and the tools and knowledge needed to grow successful businesses.
Egypt has also made strong progress in advancing women’s economic empowerment through national strategies, financial sector innovation, and inclusive regulatory reforms. As a result of the ambitious targets set by the National Strategy for the Empowerment of Egyptian Women 2030, the percentage of women with access to financial services grew exponentially from 9 percent in 2015 to 69 percent in 2024.
The Central Bank of Egypt also implemented a range of targeted regulatory reforms, including simplified Know-Your-Customer requirements and mandating banks to allocate a portion of their loan portfolios to MSMEs, placing a strong emphasis on women-owned businesses.
The story is similar in Zambia, where women’s financial inclusion rates surged from 33 percent in 2015 to 70 percent, thanks to targeted efforts by the Bank of Zambia.
Recognising that women entrepreneurs are a cornerstone of Zambia’s economy, making up 48% of the labor force, the Bank successfully implemented strategic initiatives including:
Get the latest in African news delivered straight to your inbox
By submitting above, you agree to our privacy policy.
Almost finished…
We need to confirm your email address.
To complete the process, please follow the instructions in the email we just sent you.
There was a problem processing your submission. Please try again later.
Africa needs millions of new jobs – women’s financial inclusion can provide them
With Africa’s population projected to soar, the continent will need to create 15 million new jobs every year between now and 2050. By supporting African countries in developing policies that make finance more accessible, affordable, and responsive to the realities of women-owned businesses, the Alliance for Financial Inclusion/African Development Bank partnership is helping create conducive conditions for women entrepreneurs to thrive and generate these much-needed job opportunities. Ultimately, this will lay the foundation for robust, inclusive and sustainable economies across the continent.
Audrey Hove, is the Head of Policy Management, Alliance for Financial Inclusion
AllAfrica publishes around 500 reports a day from more than 110 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.
Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.
AllAfrica is a voice of, by and about Africa – aggregating, producing and distributing 500 news and information items daily from over 110 African news organizations and our own reporters to an African and global public. We operate from Cape Town, Dakar, Abuja, Johannesburg, Nairobi and Washington DC.
Get the latest in African news delivered straight to your inbox
By submitting above, you agree to our privacy policy.
Almost finished…
We need to confirm your email address.
To complete the process, please follow the instructions in the email we just sent you.
There was a problem processing your submission. Please try again later.
source
