The Standard Group Plc is a multi-media organization with investments in media
platforms spanning newspaper print operations, television, radio broadcasting,
digital and online services. The Standard Group is recognized as a leading
multi-media house in Kenya with a key influence in matters of national and
international interest.
Women in Marigat, Baringo County, joyfully sing while clutching various types of indigenous seeds as they mark International Women’s Day on March 8, 2024.[Kipsang Joseph, Standard]
There is often a prevailing notion that empowering women is merely about giving them a seat at the table or a voice to speak. But true empowerment goes far beyond that - it is about providing women with the tools and opportunities to shape their own futures. A key area is financial empowerment as it enables one to experience a better quality of life, to thrive and grow healthy communities.
A common barrier faced by women, especially in developing countries like Kenya, is lack of access to capital to finance businesses. Whereas financial access between men and women narrowed from 8.5 per cent in 2016 to 4.2 per cent in 2021, as per data from the Financial Sector Deepening Kenya, there is still a long way to go in closing the gender gap. Without the financial means to start and grow businesses, women remain constrained in their ability to be economically empowered. This limits their ability to realise their potential and also reduces their agency to determine their quality of life.
The disparity in access also extends beyond Kenya to the rest of the continent. According to the International Monetary Fund, only 37 per cent of women in sub-Saharan Africa have access to bank accounts, compared to 48 per cent of men - a gap that has widened over the past years.
For a continent that represents the new frontier of economic growth and opportunity, it is interesting to note that half its population lacks access to the formal financial system. The returns on investment for the continent are diminished as long as barriers persist for women to actively contribute to the economy.
When you invest in a woman, the returns are exponential. Research shows that women tend to reinvest up to 90 per cent of their income back into their households - on health, education, home improvement and more. This builds human capital and unlocks generational progress.
Economies grow when women have greater economic power. According to McKinsey, advancing women’s equality could add USD 12 trillion to global GDP by 2025. Investing in women is strategic and bears return in terms of economic and social development. The results are felt in the short and long term. Women represent an underserved market segment, representing both a huge business opportunity and a means to drive economic growth.
Even more powerful is the ripple effect of women’s empowerment across generations. Research shows that women role models inspire girls to achieve more - educationally, economically and socially. This creates a snowball effect for gender equality and inclusive growth.
To realise this outcome, digital financial services are crucial and hold the massive potential to expand women’s access and usage. Mobile money platforms like M-Pesa are reaching low-income women in remote rural areas enabling them to access financial services for the first time. The same is true for informal savings groups which build financial resilience at the community level. Fintech solutions are also emerging as an innovative means to drive inclusion.
Financial institutions are the primary channels through which capital flows in any economy. They hold the power to unlock women’s financial potential and can leverage this by tapping into their entrepreneurial drive. For instance, SBM Bank has empowered women through its USD 10 million risk-sharing agreement with the African Guarantee Fund to increase financing of women-led SMEs.
Ms Muthui is the Director of Consumer Banking at SBM Bank Kenya
The Standard Group Plc is a multi-media organization with investments in media
platforms spanning newspaper print operations, television, radio broadcasting,
digital and online services. The Standard Group is recognized as a leading
multi-media house in Kenya with a key influence in matters of national and
international interest.
Honda and Nissan expected to begin merger talks
Irony of lowest inflation in 17 years but Kenyans barely making ends meet
How new KRA guidelines will impact income tax calculation
Job loss fears as Mbadi orders cost-cutting in State agencies
Diversifying Kenya's exports for economic prosperity
join