Banking on women entrepreneurs in Africa

In sub-Saharan Africa, the financial inclusion gender gap is still a major challenge, and the region still has the second highest gender disparity of any emerging market region. It is estimated that around 35 million women in sub-Saharan Africa have difficulty accessing financial services. Although some banks are making efforts to address barriers to entry for women, what is clear is that Africa’s banks need to create specific banking products and services for women, and in particular women entrepreneurs, to improve this situation. And, it’s in the banks’ best interests from a business perspective. Women owned businesses represent a third of all SMEs on the African continent, and it is accepted that SMEs are the real job creators in Africa. That means women entrepreneurs are a major source of untapped economic potential, as without access to the right financial support and advice, they cannot grow. If more banks in Africa looked to proactively close the credit gap and provide real financial access to women entrepreneurs, then the continent would thrive. Banking on women entrepreneurs in Africa makes sense on every level. It represents access to a vast untapped business pipeline for the banks worth billions of dollars. It also  provides the financial boost that women entrepreneurs need to really build high growth potential businesses on the continent.