By Ramat Ebella WHAJAH
Achieving gender equality in finance is both a ethical obligation and an economic must. In Ghana, even though considerable progress has been made toward empowering women, a consistent disparity in wealth between genders still hinders the growth potential of female entrepreneurs and business leaders.
Women continue to be underrepresented when it comes to receiving services from financial institutions in Ghana. They encounter obstacles when trying to obtain loans and find it difficult to acquire funding for their enterprises. This piece delves into the issues exacerbating the gender wealth divide within the country’s finance industry and proposes practical measures that stakeholders such as policymakers, investors, business owners, and supporters can implement to address these disparities and promote equitable economic development.
Grasping the disparity in financial resources between genders
The gender wealth gap denotes the difference in financial resources, earnings, and investment prospects between males and females. In Ghana, various elements lead to this discrepancy.
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Limited access to capital:
Female business owners get considerably less financial support from banks, venture capitalists, and investors compared to their male peers. -
Cultural and societal barriers:
Common gender roles and standards frequently dissuade females from venturing into business and achieving economic self-sufficiency. -
Lower financial literacy levels:
Women, especially those living in countryside regions, frequently face constraints when it comes to obtaining knowledge about finance, which impacts their capacity to make well-informed choices regarding investments. -
Disparity in property and asset ownership:
A number of financial institutions demand collateral like land or real estate for loan approvals; however, fewer women possess these types of assets because of legal barriers and societal limitations. -
Prejudices within investment and credit procedures:
Financial institutions frequently exhibit unconscious gender biases when evaluating businesses led by women, leading to reduced access to financing options.
Ghana’s financial sector’s part in narrowing the gender wealth gap
Tackling these issues demands focused actions from Ghana’s financial sector, policy makers, and investors. Below are crucial areas that require transformation:
Gender-sensitive banking policies
Banks and financial institutions must adopt policies that actively promote financial inclusion for women. This includes:
- Providing gender-sensitive financial services including loan options without collateral, reduced interest rates for female business owners, and adaptable repayment schedules.
- Setting up specialized financial services and counseling initiatives tailored for women.
- Boosting the presence of women in leadership positions at financial organizations to guarantee that their policies address the specific financial requirements of women.
Increasing financial opportunities for female business owners
A major obstacle to women’s financial achievement is obtaining credit. To tackle this issue:
- Governments ought to collaborate with financial institutions to establish guarantee funds aimed at minimizing risks associated with loans provided to female business owners.
- Microfinance organizations and fintech firms ought to create novel offerings like person-to-person borrowing, online loan portals, and smartphone-enabled monetary services designed specifically for women.
- Development banks as well as investment firms ought to dedicate a portion of their investment portfolios to enterprises owned by women.
Investing through a gender lens and impact investing
Investors hold a key position in narrowing the gender wealth gap. The practice of gender-lens investing, where gender-related aspects are factored into investment choices, is becoming increasingly popular worldwide and ought to be promoted in Ghana as well. Some strategies encompass:
- Creating specialized funds aimed at investing in enterprises owned and led by women.
- Promoting impact investing that emphasizes both social benefits and financial gains, specifically within areas like agribusiness and retail, which are largely led by women.
- Offering mentorship and business assistance along with investments to aid female entrepreneurs in expanding their ventures.
Policies and legal changes aimed at advancing financial equality
The government of Ghana needs to put into place and strictly apply policies that encourage financial gender equality, including:
- Updating inheritance and property legislation to guarantee that women have the ability to possess and utilize assets as security for borrowing money.
- Enhancing affirmative action measures that require credit organizations to disclose lending information broken down by gender.
- Promoting collaborations between government bodies and private enterprises aimed at advancing financial inclusion programs specifically designed for women.
Financial education and entrepreneurial workshops for women
Giving women financial education and capabilities is crucial for narrowing the wealth disparity. This can be accomplished via:
- National financial education initiatives aimed at women residing in both cities and countryside regions.
- Training programs for business that provide women with knowledge in financial management, investment tactics, and leadership in entrepreneurship.
- Partnerships among banks, non-governmental organizations, and schools to provide affordable or cost-reduced education initiatives.
Promoting women’s involvement in rapidly expanding industries
Female business owners in Ghana frequently gravitate towards conventional fields such as retail and hospitality. Promoting their involvement in rapidly expanding areas including technology, manufacturing, and finance could aid in reducing economic disparities. To achieve this, the following steps are necessary:
- Offering specific financial support and rewards to female business owners in STEM fields and sectors driven by innovation.
- Developing mentorship and apprenticeship initiatives that link women with professionals in their field.
- Guaranteeing that women-owned enterprises have equitable access to government contracts and purchasing possibilities.
The financial rationale for addressing the disparity in women’s wealth
Investing in women goes beyond equity; it also has sound economic benefits. Research indicates that narrowing the gender wealth gap can:
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Boost Ghana’s GDP:
Boosting financial inclusivity among women can spur economic development by tapping into unused entrepreneurial capabilities. -
Boost household and community welfare:
Up to 90 percent of women’s earnings are often redirected back into their families and communities, which fosters better educational outcomes, health care access, and comprehensive development. -
Strengthen the financial sector:
Financial institutions specializing in meeting women’s monetary requirements have the potential to broaden their clientele and enhance their earnings.
Conclusion
Ghana’s financial industry holds a distinct chance to spearhead efforts in narrowing the gender wealth divide through adopting inclusive gender-focused strategies, increasing accessibility to funds, and cultivating a fairer investment climate. Achieving this necessitates dedication from lawmakers, banking entities, financiers, and business starters alike. Through proactive measures aimed at hastening economic participation among women, Ghana stands poised to construct a flourishing and just society for everyone. It’s high time for discussions to cease—the moment demands decisive action ensuring females possess equivalent prospects to succeed within finance and commerce arenas.
Call to action
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For policymakers:
Put into place and uphold financial strategies that consider gender differences to foster equality. -
For investors:
Give priority to gender-lens investment strategies and direct additional funds towards enterprises led by women. -
For financial institutions:
Create comprehensive financial products and eliminate obstacles to credit availability for women. -
For entrepreneurs and advocates:
Keep advocating for systemic transformation and back women-led enterprises via guidance, partnership, and promotion.
Through collaboration, Ghana’s financial industry can implement specific measures to narrow the gender wealth gap and hasten progress toward a future where every woman and girl enjoys equal economic prospects.
>> The author serves as the Head of the Accra Tema Zone at the National Investment Bank, bringing more than ten years of expertise in areas such as business advisory, sales, customer service, and branch operations. Additionally, she founded the Girls with Purpose Foundation, a nonprofit organization dedicated to guiding young females and youths toward discovering their goals, excelling, and making an impact. Reach out to Ramat through LinkedIn using her full name, Ramat Ebella Whajah, or contact her via email.
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