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New Faces New Voices (NFNV), Network of African Business Women (NABW) and Network of African Women in Agribusiness (AWAB) are networks in Zimbabwe as part of Africawide networks under the Graça Machel Trust for women in finance, women in business and women in agriculture. In 2022 NFNV conducted a roundtable on financial inclusion on the impact of women led SMEs in the wake of the COVID-19 pandemic and NABW did a research on the impact of COVID-19. NFNV, NABW and AWAB work to enhance women’s financial inclusion, entrepreneurship and agribusiness.
SUMMARY
- In the quest for gender economic empowerment and financial inclusion, the country has focused mainly on women, micro, small and medium enterprises (MSMEs), youth including disadvantaged women and those in hard-to-reach communities.
- The Constitution of Zimbabwe (2013) has made provisions for the recognition of women’s rights, economic empowerment and the inclusion of women with provisions for domestic legislation, institutions and policies which are amended in line with the Government’s gender equity goals.
- To compliment Government’s efforts the Reserve Bank of Zimbabwe (RBZ), has rolled out a comprehensive National Financial Inclusion Strategy (NFIS) from 2016 to 2020 and NFIS2 from 2022 to 2026. It is important to note that about 57%t of MSMEs operating in Zimbabwe are run by women.
BACKGROUND AND CONTEXT
- Women’s financial inclusion has significantly changed during the review period from 68% (2014) to 83% (2022) whereas for men financial inclusion changed from 70% (2014) to 85% (2022). Financial inclusion indicates that 93% of business owners are women yet 30% formally access financial services from banks and 63% have access to mobile money services.
- Mobile money usage increased from 54% (2014) to 74% (2022). Digital financial services have largely been used for payments, credit, savings, remittances, and insurance.
- Women operated business entities in the informal sector were not spared by the Due to the COVID-19 pandemic women operated businesses within the informal sector ceased operations because of the decline in capital and scarcity of resources.
- At the same time the protective safety nets that supported women in business diminished, and measures to protect business entities did not favoUr women. For example, some women did not access financial stimulus packages from finance institutions whilst some of the measures did not address the issue of collateral for women which was and remains the biggest barrier to women’s financial Inclusion
POLICY LIMITATIONS
- Even with these policies and regulatory frameworks, women remain at the periphery of Zimbabwe’s economic development. Women remain excluded from financial services and have limited entrepreneurship skills.
- Women’s development organizations face the challenge of dealing with systemic cultural and institutional Know your client requirements that continue to hinder the economic empowerment of women.
- •There have also been concerns especially on the existence of a dualized economy characterized by multiple currencies and pricing systems which affect business. Access to financial support was constrained because of collateral challenges that women do not have.
- •Financial literacy remains low and is a major barrier that affects increased uptake of financial services among the vulnerable groups.
CONCLUSION
- The consequences of inequality inhibit the transformation of society and the realization of the Sustainable Development Goals (SDGs). Development is not only economic but contributes to social outcomes.
- It is important for NFNV, NABW and AWAB continue to explore the role that financial services can play in enhancing women’s financial inclusion and advance women’s economic empowerment.
- Expanding financial inclusion for women requires deliberate attention from policy makers to ensure implementation of policy frameworks and accountability to stakeholders.
To read the policy brief in full, click here: Policy Brief Women’s Financial Inclusion and Economic Recovery 2022
