By Barbara OKU (Dr)
Seven women will say they will provide their own food and clothes and ask to be called by a man’s name.” “Isaiah 4:1
The growing population of women worldwide, compared to the birth rate of male children, did not start in today’s world; it was predestined by the Bible, which was written many years ago.
The attention on women’s needs is therefore not a strange phenomenon for any country, particularly for developing countries such as Ghana, where women play a significant part in economic activities that yield revenue for the upkeep of the country.
In Ghana, as in many developing nations, women are pivotal not only within households but also in driving economic growth. From agriculture to trade and entrepreneurship, Ghanaian women contribute substantially to the economy.
Challenges faced by the Ghanaian businesswoman
Despite the critical role played by the Ghanaian woman in driving economic activities, her ability to thrive is largely hindered by significant financial barriers that permeate her livelihood. Between 2011 and 2017, men’s access to financial accounts rose by 30 percentage points, while women’s increased by only 27, widening the gender gap in financial inclusion from 5% to 8%.
On a larger scale, the average Ghanaian woman faces significant challenges, including financial illiteracy, limited access to financial services, and products that do not align with her specific needs—all of which are further exacerbated by traditional gender norms deeply rooted in Ghanaian culture.
- Financial Illiteracy: In Ghana, especially in rural areas, many women face significant barriers to financial education, which limits their ability to make informed decisions regarding savings, investments, and daily financial management. A troubling consequence of this knowledge gap is the low awareness, acceptance, and usage of digital banking services – a key driver of modern financial progress. The traditional businesswoman in Ghana remains largely resistant to digital banking advancements, which negatively impacts her financial behavior and growth. This financial illiteracy is not only due to a lack of information but also stems from an educational system that often neglects financial education, especially for women.
- Limited Access to Financial Services: Women often face barriers when it comes to opening bank accounts, accessing loans, or other financial products due to the lack of collateral, poor credit history, or even the social stigma that may accompany a woman seeking loans for business purposes.
- Misalignment of Products: The financial products available in Ghana are often not designed with the specific needs of women in mind. Women in the informal sector, who make up a large portion of the workforce, may find the traditional financial products unsuitable or difficult to access.
- Traditional Gender Norms: Gender norms deeply rooted in society can limit women’s economic opportunities. In Ghana, these norms can make it difficult for women to freely pursue business ventures, participate in decision-making processes, or have control over financial matters within their households. For example, societal expectations about the role of women in the home can restrict their mobility, opportunities for networking, or even access to certain financial products.
The Transformative Role of the Bank in Enhancing Financial Independence of the Ghanaian Businesswoman
Addressing the unique financial challenges faced by women is essential for empowering females in the country. Studies have shown that focusing on women within the banking sector can significantly enhance the economic performance of developing countries like Ghana. It is no surprise, then, that this agenda has recently become a priority on the Ghana’s national agenda.
The nation’s proposal to focus on “Women Banking”, should be driven by the desire to meet the unique financial needs of women, offering products and services that are accessible, flexible, and tailored to the realities women face. In effect, the benefits the Ghanaian Woman stands to enjoy should include the following:
- Targeted financial products that address the diverse needs of the Ghanaian woman, improving access to savings, microfinancing and credit access. These products should consider the irregular income and smaller revenue typical of a Ghanaian businesswoman, offering incentives such as flexible savings accounts, low-interest loans, and special programs that cater to these unique financial patterns. Additionally, these products should incorporate financial literacy programs to empower women, enabling them to make informed financial decisions, manage risks, and save for future goals.
- Activities that advocate for legislation to build the financial independence of Ghanaian women by increasing their control over financial decisions, enabling them to build asset portfolios that can be used as collateral, and promoting the use of non-traditional assets such as movable properties or business ownership as collateral for loans.
- Financial literacy programs, especially in the digital space, should be designed to encourage women to use mobile banking, e-wallets, and fintech services. These programs should also advocate for the development of policies that encourage the Central Bank to collaborate with fintech companies in creating accessible, user-friendly platforms that empower women in rural areas. Digital banking can help overcome barriers such as distance, transportation challenges, and the absence of local bank branches. Additionally, digital platforms often provide greater privacy, enabling women to make financial decisions with more freedom and without the fear of judgment or external pressures.
The effect of a Women’s Bank on the nation
Establishing a bank dedicated to supporting businesswomen in Ghana not only benefits individual families but also strengthens their financial independence, driving both social and economic progress across the country.
The social impact is reflected in the woman’s participation in key economic sectors such as health, education, and welfare. This involvement leads to lower unemployment rates and reduced poverty, ultimately enhancing overall social development.
In essence, gender-sensitive banking is not just an investment in women’s financial independence but also in the future prosperity of the entire nation.
