Closing gender gap: USAID, EU commit to women's financial inclusion
Whereas the difference is negligible, women tend to be more cautious while borrowing than men. PHOTO | FILE
What you need to know:
- USAID Mission Director, Daniele Nyirandutiye, emphasised the organisation's commitment to accelerating collaboration with financial sector players to facilitate women's businesses
The second Annual Women Economic Empowerment Forum in Uganda has successfully come to a close, leaving a lasting impact on the financial sector's approach to women's economic empowerment.
The event, held in Kampala, brought together key stakeholders from the Uganda Bankers' Association (UBA), USAID, and the European Union (EU) to discuss ways to promote women's economic inclusion.
USAID Mission Director, Daniele Nyirandutiye, emphasised the organisation's commitment to accelerating collaboration with financial sector players to facilitate women's businesses.
This move aims to address the significant gender gap in access to finance, which hinders women's economic empowerment. USAID will provide financial advisory services to women and build capacity of financial institutions to extend affordable credit facilities without requiring collateral.
The EU also pledged its support, with Sanne Willems, EU Team Leader for Green Transition and Private Sector, announcing the European Investment Bank's (EIB) 200 million Euro portfolio for Small and Medium Enterprises with a gender focus. Special credit lines have been dedicated to women-owned businesses.
FINCA Uganda Chairperson, Olive Birungi Lumonya, stressed that closing the gender gap is long overdue. "Women's struggles in business are not about poverty, but lack of opportunity," she said. "Poverty is a result of limited access to affordable finance, financial literacy, and collateral requirements".
Women's economic empowerment is a critical catalyst for achieving the United Nations' Sustainable Development Goals (SDGs). Despite making up 50 per cent of the global population, women continue to face significant economic challenges, including limited access to formal financial services, decent work, and autonomy over their time and lives.
To foster women's economic empowerment, strategies should involve confirming equal rights and opportunities, cultivating work-life balance, boosting access to assets, and challenging societal norms. The UN Economic and Social Council advocates for comprehensive strategies aligned with SDGs, including eradicating discriminatory laws and promoting equitable distribution of resources through gender-responsive budgeting.
“By prioritising women's economic empowerment, we can drive family welfare, economic growth, and societal transformation.” As emphasised by the UNDP's Gender Equality Strategy 2022-2025, finance, digitisation, and innovation are pivotal facilitators of gender parity.
The Uganda Bankers' Association (UBA) remains committed to achieving a banking and financial services industry that offers women equal opportunities as employees, customers, and entrepreneurs. The Women Economic Empowerment Initiative (WEEI) is a significant milestone in UBA's commitment to promoting gender equality and leadership development.
