The Sunday Mail
Munyaradzi Mlambo
THE Reserve Bank of Zimbabwe says women remain financially excluded despite the key role they play in economic development. In the first six months of the year, loans to women – who make up more than 50 percent of the population – constituted only 10 percent of total bank lending.
Experts say women are held back by low literacy levels, lack of acceptable collateral and inadequate information on banking products among other factors. RBZ Deputy Governor Dr Charity Dhliwayo told the Women Excel 5th anniversary in Harare recently that, “Financial inclusion imbalance is of concern to the RBZ in view of the role played by women. Women are fundamental contributors to economic development.”
The central bank is spearheading a financial inclusion strategy, which was launched in March this year and will to 2020. As part of measures to enhance financial inclusion, the RBZ will launch a women’s empowerment fund that will provide loans at concessionary interest rates to beneficiaries, said Dr Dhliwayo.
Similarly, the apex bank is collaborating with financial institutions to provide low-cost or “no frills” accounts. “Credit guarantee scheme will also be re-established to facilitate partial transfer of credit risk stemming from loans with inadequate collateral,” said Dr Dhliwayo.
An initiative to set up women’s desks in banks is gaining momentum as eight banks have since complied. Monetary authorities are also targeting to develop a rural and agricultural finance policy targeted specifically at women. Dr Dhliwayo said financial inclusion of women resulted in improved household welfare and a more robust national economy.
“At the household level, women are the primary ‘financial managers’, ensuring intra-household resource allocation to meet ongoing basic needs and additionally saving for future requirements,” she said. According to a 2014 FinScope Consumer Survey, 23 percent of Zimbabwe’s adult population is financially excluded.
Financial exclusion of women is, however, not peculiar to Zimbabwe. According to World Bank 2014 Global Findex data, only 58 percent of women globally hold bank accounts compared to 65 percent of men. In Sub-Saharan Africa, less than 30 percent of women have an account with a formal financial institution, and a paltry 15 percent of the female population was served by a financial institution in 2012.
