Tryphosa Ramano | Women are a high-value investment. Why are we still fighting for their inclusion? | Fin24

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If women and men participated equally as entrepreneurs, this could boost global economic growth by $2.5-5 trillion. Women also tend to reinvest in health, education and nutrition, writes Tryphosa Ramano.

In a speech 26 years ago, then-president Nelson Mandela said:"As long as women are bound by poverty… as long as outmoded ways of thinking prevent women from making a meaningful contribution to society, progress will be slow. As long as the nation refuses to acknowledge the equal role of more than half of itself, it is doomed to failure."

Public policy can facilitate access to finance for women and address market failures, thus closing financing gaps.That is why the Broad-Based Black Economic Empowerment Act promotes"increasing the extent to which black women own and manage existing and new enterprises, and increasing their access to economic activities, infrastructure and skills training".

According to a United Nations Development Programme report, gender inequality costs sub-Saharan Africa on average $105-billion a year - or 6% of the region's GDP. It says this jeopardises the continent's efforts for inclusive human development and economic growth. Evidence shows that if all countries worldwide reached gender equality, the global gains in terms of economic growth would be 26 percent, with Africa gaining 12 percent in terms of GDP.

The Financial Alliance for Women, an international consortium of financial service providers focused on championing the female economy, found that, for the fifth consecutive year, women outpace the market in customer, credit and deposit growth yet remain underrepresented in all segments. As we search for a solution to the inequality between men and women in accessing finance, the answer could be simple: Financial institutions should acknowledge that women are a high-value investment. Also, banks should tailor services to female entrepreneurs that will trigger a ripple effect across the economy.

 

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