Bridging the gender-finance gap in Zambia
The partnership aligns with ITC’s long-standing support of women-led small businesses and the Bank of Zambia’s strategic initiatives to reduce the gender gap and mainstream gender inclusivity in the financial sector as part of their 2020-2023 Strategic Plan.
International Trade Centre and Bank of Zambia join forces to mainstream gender-lens investing and advance Zambian women-led businesses in trade.
(Lusaka/Geneva) The International Trade Centre (ITC) and the Bank of Zambia today signed a Memorandum of Understanding to advance inclusive trade in Zambia. The partnership focuses on narrowing the gender-financing gap, which currently stands at 5.8 percentage points for formal financial inclusion, and unlocking new market and investment opportunities through strengthening the competitiveness of Zambian women-led businesses.
The partnership aligns with ITC’s long-standing support of women-led small businesses and the Bank of Zambia’s strategic initiatives to reduce the gender gap and mainstream gender inclusivity in the financial sector as part of their 2020-2023 Strategic Plan.
Under its SheTrades Zambia project, ITC will carry out capacity-building activities, including workshops to increase the financial literacy of women entrepreneurs, and trainings to financial service providers on gender-lens investing and impact frameworks. The project will also seek to partner with key stakeholders in the financial ecosystem to promote financing opportunities for women entrepreneurs.
Moreover, both institutions will co-create a “Gender Lens Funding in Zambia” catalogue with an overview of the financial landscape for women in Zambia. It will also include an index of sustainable and inclusive funding options available. To encourage local ownership and reach rural communities, the catalogue will be translated into local languages and will be rolled out by key business support organizations.
Quotes
‘Despite their significance to the economy, women entrepreneurs face many challenges, including human resource constraints, increased competition, access to market and finance. ITC’s timely support will enable them to leverage emerging trade opportunities and improve their linkages to formal supply chains, thereby contributing to Zambia’s economic growth. We believe that the planned activities will provide an opportunity for learning, innovation, partnerships, and alliances to ensure that women entrepreneurs are empowered.’
Denny Kalyalya, Governor, Bank of Zambia
‘Although Zambia has one of the highest proportions of women entrepreneurs on the African continent, a big proportion of Zambian women are still financially excluded. We are at a turning point in history – the world seeks to ‘build forward better’ and to create a more inclusive and sustainable economy. Women entrepreneurs cannot be excluded from the equation. Collaborative efforts such as this new partnership are vital. I am so pleased that under this MoU, we will provide support to the women entrepreneurs and business support ecosystem so that we narrow the gender financing gap and make an inclusive and fair economy a reality.’
Dorothy Tembo, Deputy Executive Director, International Trade Centre
Background
Women make up 48% of the labour force in Zambia and own about 36% of small businesses and 42% of micro enterprises in the country, according to the World Bank. Although Zambia has taken great strides to reduce the gender finance gap, with 58% of women reported as being financially included in 2020, as compared to 33% in 2015 according to Finscope, the gender gap persists on several fronts. Men employ more formal financial services and access larger bank loans than women. Moreover, they receive more systemic support through policies based on data that lack a gender perspective.
About the International Trade Centre: The International Trade Centre is the joint agency of the World Trade Organization and the United Nations. ITC assists micro, small and medium-sized enterprises in developing countries to become more competitive in global markets – thus contributing the United Nations Sustainable Development Goals. For more information, visit www.intracen.org.
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About Bank of Zambia
The Bank of Zambia (BoZ) is established under Part XVII of the Constitution of Zambia (Amendment) Act no. 2 of 2016 as the Central Bank of the Republic of Zambia. It is the Financial Sector Regulator. The Constitution also provides for its functions and powers. The Mission Statement of the Bank is to achieve and maintain price and financial system stability to foster sustainable economic development.
About ITC SheTrades Zambia Project
The SheTrades Zambia Project aims to increase the competitiveness of women-led businesses in Zambia and connect them to markets. The project, which is in its second phase, is implemented by the International Trade Centre (ITC), in collaboration with the Ministry of Trade, Commerce and Industry (MCTI), and the Zambia Development Agency (ZDA). Funded by the Enhanced Integrated Framework (EIF), SheTrades Zambia advocates for a conducive business environment for women entrepreneurs, providing them with access to the skills and support systems required to run successful businesses, and connects them to market and financial partners.
Source: newsghana.com.gh
