The state of financial inclusion among Rwandan women

Rwanda has made significant progress in closing the gender gap in financial inclusion, with the overall gap decreasing from 4% in 2016 to just 1% in 2020. However, a recent FinScope gender survey indicated that there has been a rise in the utilization of informal financial mechanisms by women, leading to a 4% widening of the gap. To delve deeper into these findings, Jean Bosco Iyacu from Access to Finance Rwanda recently shared insights on CNBC Africa. He highlighted the success Rwanda has achieved in narrowing the gender gap over the years but also acknowledged the existing constraints hindering full women participation in the financial sector and economic activities. Despite the current 1% gap being a remarkable feat compared to past years, there are still underlying issues that need to be addressed to enhance women's financial inclusion. Various stakeholders, including the government, private sector, public sector, and development partners, have been working collaboratively to bridge this gap. Initiatives focusing on improving education, financial literacy, and enhancing infrastructure access for women have played a crucial role in providing more opportunities for financial inclusion. Women-centric financial products designed by both banks and circles have further transformed the financial landscape, making it more inclusive for women. The collection of gender-disaggregated data has also been instrumental in informing policy decisions and strategies at a macroeconomic level. Despite the progress made in Rwanda, the COVID-19 pandemic has posed new challenges globally. While some countries are experiencing increased gender finance inequality due to the pandemic, Rwanda's findings do not show a significant impact from COVID-19 on the gender gap in financial inclusion. Iyacu attributed this to the declining poverty rates in Rwanda, indicating that more women are actively participating in the economy, generating income, and creating employment opportunities. Looking ahead, the aftermath of the pandemic could potentially impact women's access to credit and their ability to establish businesses. Women in Rwanda are currently lagging behind men in accessing credit from financial institutions, with a notable 7% gap in the banking sector. To address this disparity, a deeper understanding of women's diverse needs and circumstances is necessary. Tailored financial products and services must be developed to cater to different segments of women, considering factors such as rural versus urban settings, education levels, and specific economic activities. By addressing these challenges, Rwanda aims to further close the gender gap in financial inclusion and empower women to thrive in the country's growing economy.