Melinda French Gates took to the stage during the World Bank and International Monetary Fund Spring Meetings to promote investments in unleashing capital for women entrepreneurs in Africa. She highlighted that one in four African women is an entrepreneur. This is the highest proportion of women entrepreneurs in the world.
French Gates also noted that “it is really hard for women to get their businesses capitalized… And yet, there is so much opportunity.” Capital, French Gates argues, is the surest means of unlocking women’s economic power. Her statements resonate with FINCA’s belief that all people should have the opportunity to leverage their wisdom, talent, and effort to determine their own destiny.
How FINCA is Unleashing Capital for Women Entrepreneurs
FINCA’s CEO Andrée Simon shared on-the-ground insights around the Spring Meetings, stating that many women are self-employed because they have no other option. She said that while technology can increase banking access, affordability, and services, many people in sub-Saharan Africa, especially women, lack mobile internet access and financial education. Andrée also noted that financial service providers like FINCA that are deeply rooted in communities are best poised to meet these women’s needs.
Andrée highlighted successes in focusing on women in FINCA’s digitization projects. These initiatives, which include onboarding women as banking agents, cost much less than building brick-and-mortar bank branches. FINCA also has tested more frequent financial coaching to women client through customer call centers. That test resulted in doubling deposit counts and almost tripling total transactions.
What Unleashing Capital for Women Could Do
French Gates also recently wrote a foreword to a recent paper from the Gates Foundation titled “The Capital Women Need, for the Future We All Need.” The article discusses the critical need to expand access to affordable credit for women entrepreneurs in sub-Saharan Africa. She highlights a staggering US$1.7 trillion gap between the capital women desire and what they receive.
So, what are the barriers that women face? These include a lack of collateral due to property not being in their names, absence of bank accounts and formal credit history, and biases from lenders. A financial system that does not cater to the needs of small-dollar borrowers compounds these challenges.
French Gates also sheds light on the positive ripple effects of women’s financial success, noting that bridging the financing gap that women face could add US$6 trillion to global GDP. She points to increased resilience to health, security, and climate shocks, job creation, and the potential to lift entire countries out of poverty.
Turning Vision into Reality
Melinda French Gates’ and the Gates Foundation’s focus on unleashing capital for women entrepreneurs in Africa dovetails with FINCA’s mission. We are committed to addressing the same core issue: the need for inclusive financial systems that support women’s economic empowerment. Together, we recognize that empowering women is a moral imperative and a pragmatic strategy for sustainable development and equitable growth.
By closing the capital gap for women, we aim to create a more resilient and prosperous future for communities in sub-Saharan Africa and beyond.
