MICROFINANCE PAPER WRAP-UP: “Policy Brief: Advancing African Women’s Financial Inclusion;” published by Making Finance Work for Africa, GIZ, New Faces New Voices, East African Community, BMZ

Published by Making Finance Work for Africa (MFW4A), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), New Faces New Voices, East African Community, Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ); 2012; 40 pages; available at: http://www.gbaforwomen.org/images/library/873/Advancing-Womens-financial-inclusion-Final-English.pdf

This report presents an analysis of the potential positive impacts of advancing African women’s financial inclusion, including more inclusive and sustainable economic growth and higher levels of productive investment and asset accumulation. According to the report, although African women have less access to financial services than men, “at the household level, women are the primary financial managers in most families, ensuring intra-household resource allocation to meet ongoing basic needs and additionally saving to invest in and protect their families’ future.”

To address this inequality, the authors recommend the following legal changes: (1) removing discriminatory legal provisions that “impede women’s financial inclusion”, especially with regard to land ownership and property rights; (2) introducing regulations “allowing for alternative collateral and for leasing, overcoming women’s constraints of limited asset accumulation;” (3) reforming the legal and regulatory framework for insurance “to allow for greater development of gender sensitive products;” and (4) refining and strengthening “financial consumer protection regulation that addresses the concerns and issues of women clients, balancing protection with expansion of outreach;”

Additionally, the authors recommend the following social and structural changes: (1) building “the awareness of policy makers and other stakeholders with regard to the financial needs of women in different market segments [and] bringing women leaders into policy dialogue;” (2) investing in financial capability programs for women, reinforcing the ability of African women to act as informed and educated financial customers; (3) recognizing the value of data to both male and female customers, financial institutions and governments, central banks and regulatory and supervisory authorities; and (4) investing in policy research to “underpin gender-sensitive policy development.”

By Makai McClintock, Research Associate

Sources and Additional Resources

“Policy Brief: Advancing African Women’s Financial Inclusion;” by published by Making Finance Work for Africa, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), New Faces New Voices (NFNV), East Africa Community (EAC), Federal Ministry for Economic Cooperation and Development (BMZ); 2012; 40 pages; available at:http://www.gbaforwomen.org/images/library/873/Advancing-Womens-financial-inclusion-Final-English.pdf

MicoCapital. March 25, 2013, “MICROFINANCE PUBLICATON ROUND-UP: Microfinance and Patriarchy, Connecting the World’s Poorest People to the Global Economy, “Best Practices” in Serving Small Business,” https://www.microcapital.org/microfinance-publication-round-up-microfinance-and-patriarchy-connecting-the-worlds-poorest-people-to-the-global-economy-best-practices-in-serving-small-businesses/

MicoCapital. March 17, 2013, “MICROFINANCE PUBLICATON ROUND-UP: Mapping Microfinance in Uganda, the G2P Payments Sector in Pakistan, Nepal Country Snapshot,” https://www.microcapital.org/microfinance-publicaton-round-up-mapping-microfinance-in-uganda-the-g2p-payments-sector-in-pakistan-nepal-country-snapshot/

MicroCapital. February 21, 2013, “MICROFINANCE PUBLICATION ROUND-UP: Banking on Change Partnership for Financial Inclusion in Africa; Findings on Financial Inclusion in Nigeria; Snapshot of Microfinance in Latin America and the Caribbean,” https://www.microcapital.org/microfinance-publication-round-up-banking-on-change-partnership-for-financial-inclusion-in-africa-findings-on-financial-inclusion-in-nigeria-snapshot-of-microfinance-in-latin-america-and-the-carib/

MicroCapital Universe Profile: Making Finance Work for Africa (MFW4A), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Making+Finance+Work+for+Africa+%28MFW4A%29

MicroCapital Universe Profile: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Deutsche+Gesellschaft+f%C3%BCr+Technische+Zusammenarbeit+GmbH+%28GTZ%29

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