By Kwasi KYERE
During the vetting of ministers, the newly appointed Minister identified women’s banking as a key priority for the new government, recognizing its potential to drive economic growth, create employment, and promote gender equity in Ghana.
This inspired me to write this article, offering insights on how we can advance this agenda for the benefit of our nation. I am particularly passionate about empowering women economically, as many of us were raised by single mothers who worked tirelessly to provide for us. Giving women the opportunity to thrive in economic activities is not just beneficial—it is essential for national progress.
The establishment of a women’s bank in Ghana, staffed entirely by female personnel, represents a groundbreaking initiative that could significantly impact the nation’s economic landscape.
This concept aligns with global trends in addressing gender-specific financial barriers and promoting women’s participation in economic development. By exploring the potential implications of this policy, we can evaluate its effect on Ghana’s GDP, employment, women’s involvement in economic development, and its long-term sustainability. Additionally, lessons from other nations will offer insights into the potential benefits and challenges of implementing such an initiative.
The concept of a women’s bank
A women’s bank is an institution specifically designed to cater to the financial needs of women. It provides products and services tailored to address the barriers women face in accessing credit, savings, and other financial tools. These barriers often stem from cultural norms, limited collateral, or restricted financial literacy. A women’s bank not only empowers women financially but also provides opportunities for gender-focused economic inclusion.
The decision to staff this institution entirely with women underscores the commitment to advancing female representation in leadership and operational roles, creating a safe, inclusive, and empowering environment for both employees and customers.
Impact on Ghana’s GDP
Increased economic productivity
- Women account for over half of Ghana’s population and play a critical role in agriculture, entrepreneurship, and trade. However, the majority remain underbanked or financially excluded.
- A women’s bank can provide women entrepreneurs with easier access to credit, allowing them to expand businesses, increase productivity, and contribute to the GDP. Studies show that when women thrive economically, they reinvest 90percent of their income into their families and communities, creating a multiplier effect on economic growth.
Fostering Micro, Small, and Medium Enterprises (MSMEs)
- MSMEs account for about 70percent of Ghana’s GDP. Since many women operate in the informal sector or run small businesses, better financial inclusion could formalize these enterprises, increase tax revenues, and further boost GDP.
Employment creation
Direct employment opportunities for women
- Staffing the bank exclusively with women provides direct employment, empowering them with leadership and professional roles in finance.
- This creates role models for young girls, inspiring them to pursue careers in traditionally male-dominated fields such as banking and finance.
Indirect employment
- Increased financial inclusion will stimulate entrepreneurship among women, which will, in turn, create jobs in other sectors, including agriculture, manufacturing, and services.
Enhancing women’s involvement in economic development
Access to credit and financial services
Women are often denied access to loans due to lack of collateral or traditional societal roles. A women’s bank can address this by offering tailored financial products, such as group lending, which has been successful in microfinance models globally.
Promoting financial literacy
The bank can implement programs to improve financial literacy among women, enabling them to make informed decisions about savings, investments, and business expansion.
Bridging the gender gap
Ghana ranks low on the Global Gender Gap Index in terms of economic participation and opportunity. The women’s bank would serve as a targeted intervention to close this gap, enhancing Ghana’s global competitiveness.
Lessons from other nations
- India: The Bharatiya Mahila Bank, established in India, focused on increasing women’s access to credit and financial services. It funded numerous women-led startups, boosted rural women’s income, and raised awareness of financial inclusion.
- Bangladesh: Grameen Bank, a pioneer in microfinance, demonstrated how lending to women can reduce poverty and improve community development. Women borrowers in Bangladesh achieved higher repayment rates and invested significantly in education and healthcare.
- Rwanda: Post-genocide Rwanda emphasized women’s empowerment, introducing gender-focused financial reforms. Women’s access to banking led to higher GDP growth and reduced gender inequality, solidifying Rwanda as one of Africa’s fastest-growing economies.
Long-term impacts on Ghana
Positives
- Economic empowerment: Empowered women contribute to economic resilience, reducing poverty and enhancing household welfare.
- Sustainable development: Women invest in education, health, and infrastructure, fostering sustainable development goals (SDGs).
- Cultural shift: The initiative challenges gender stereotypes and encourages broader societal acceptance of women in leadership roles.
Negatives
- Exclusion of male entrepreneurs: Male entrepreneurs may perceive this initiative as discriminatory, potentially creating gender-based tensions in the financial sector.
- Operational challenges: Recruiting and training an all-female workforce could initially pose logistical and financial constraints.
- Sustainability concerns: If not well-managed, the bank could face challenges in profitability, especially if it focuses heavily on microloans with lower returns.
Recommendations for Success
- Policy and framework development: The government must establish clear policies to ensure the bank aligns with national economic goals.
- Collaboration with existing banks: Partnerships with traditional financial institutions can enhance the bank’s reach and resources.
- Data-driven decision-making: Leveraging technology to collect and analyze customer data will optimize product offerings and ensure sustainability.
- Inclusive programmes: While focusing on women, the bank should indirectly cater to men through women-owned businesses to balance economic equity.
Conclusion
The establishment of a women’s bank in Ghana represents a bold step toward addressing gender disparities in the financial sector. By empowering women, this initiative has the potential to boost GDP, create jobs, and foster long-term economic growth.
While challenges exist, lessons from other nations provide a roadmap for success. Ultimately, this initiative will not only transform the financial sector but also redefine the role of women in Ghana’s economic development, driving the nation closer to achieving inclusive and sustainable growth.
>>>the writer is a Senior Partner at Infinity Prestige Consultancy Limited and Chief Executive Officer of Infinity Prestige Homes. He holds a Master Degree in Microfinance and Master’s degree in Sacred Ministry (Theology). He also holds a PhD in Finance. He can be reached via +233 243344820 and or [email protected]
