Kenyan urged to invest in women for sustainable development and healthy communities

Nairobi – There is often a perception that empowering women is just about giving them a place at the table or a voice to speak.

But true empowerment goes much further: it is about giving women the tools and opportunities to shape their own future.

Financial empowerment is a driver that enables one to experience a better quality of life, thrive, and grow healthy communities.

Barriers faced by women in Kenya

A common barrier women face, especially in developing countries like Kenya, is the lack of access to capital to finance businesses. While financial access between men and women has declined from 8.5% in 2016 to 4.2% in 2021, data from the Financial Sector Deepening Kenya (FSD Kenya) shows that there is still a long way to go to close the gender gap.

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Without the financial resources to start and grow businesses, women are limited in their ability to become economically empowered. This not only limits their ability to realize their potential, but also reduces their freedom of choice to determine their quality of life.

The disparity in access also extends beyond Kenya to the rest of the continent. According to the International Monetary Fund (IMF), only 37% of women in Sub-Saharan Africa have access to bank accounts, compared to 48% of men – a gap that has widened in recent years.

Differences in access to financial systems

For a continent that represents the new frontier of economic growth and opportunity, it is interesting to note that half of the population does not have access to the formal financial system. The return on investment for the continent will decline as long as barriers remain for women to actively participate and contribute to the economy.

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When you invest in a woman, the returns are exponential. Research shows that women tend to reinvest up to 90% of their income in their households – in healthcare, education, home improvements and more. This builds human capital and unlocks generational progress.

Economic benefits of women’s involvement

It has been proven that economies grow when women have more economic power. According to McKinsey, advancing women’s equality could add $12 trillion to global GDP by 2025.

Investing in women is strategically important and yields returns in terms of economic and social development. The results are tangible in the short and long term. Women represent an underserved market segment and represent both a tremendous business opportunity and a means to drive economic growth.

Even more powerful is the ripple effect of women’s empowerment across generations. Research shows that female role models inspire girls to achieve more in their own lives – educationally, economically and socially. This creates a snowball effect for gender equality and inclusive growth.

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The role of digital financial services in women empowerment

To achieve this outcome, digital financial services are crucial and offer enormous potential to increase women’s access and use. Mobile money platforms like M-Pesa reach low-income women in remote rural areas, giving them access to financial services for the first time.

The same goes for informal savings groups that build financial resilience at the community level. Fintech solutions are also emerging as an innovative means to drive inclusivity.

Financial institutions are the main channels through which capital flows in any economy. They have the power to unlock women’s financial potential and can harness this by using their entrepreneurial spirit.

As a leading financial institution, SBM Bank has set the pace for the women empowerment agenda. We have empowered women through our $10 million risk-sharing agreement with the African Guarantee Fund (AGF) to increase financing for women-led small and medium enterprises.

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This is just one pillar of our broader commitment to women’s empowerment, which we deliver through our Women Markets Program. The program continues to provide connections that educate, empower and protect women entrepreneurs from various sectors through advisory services, investments, insurance and asset management.

We are at a turning point in the women’s empowerment agenda, and this is due to the infinite resources, wealth, information and technology available for us to harness. These create an enabling environment for women to prosper financially.

Investing in women is a strategic step towards sustainable development. As Theodore Hook puts it, “The best way to predict the future is to invent it.” The secure and prosperous future we all desire will become a reality if we create it today by empowering every woman to fully realize her full financial potential.

The above comment is from Beth Muthui, Director of Consumer Banking at SBM Bank Kenya.

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The opinions expressed here are those of the writer and do not in any way represent the position of TUKO.co.ke.

Source: TUKO.co.ke