Introduction

According to the World Bank, financial inclusion means that both individuals and businesses have access to and the use of affordable financial products and services that meet their needs, which are provided in a responsible and sustainable manner. However, in Mozambique, the current situation reveals that access to financial services and products is very limited, especially for women, presenting significant constraints to achieving Sustainable Development Goal (SDG) 5.

Current Mozambican Panorama – Gender Disparity Persists

According to the Mozambican Central Bank, almost 64 percent of women in Mozambique have access to formal financial services, whereas only 36 percent are financially excluded, illustrating significant disparities regarding gender equality in access to financial services. Furthermore, in Mozambique, 43 percent of women have a bank account while 57 percent of men have a bank account. This scenario persists even though women constitute 51 percent of the economically active population in Mozambique.

Benefits of Investing in Women’s Financial Inclusion

According to the International Monetary Fund investing in women’s financial inclusion can provide a lot of advantages and can contribute positively to achieving other SDGs. By way of illustration, increasing their economic participation may improve their education and consequently speed up development. It can also help overcome poverty, improve children’s health and nutrition, and boost child education. Women own up to one third of small businesses in developing countries and can be important drivers of economic growth and job creation.

Challenges to Achieve and Way Forward

Among the various prevailing challenges in Mozambique, the following stand out:
(i) women face certain social restrictions, such as low levels of education in general and low financial literacy in particular—especially in rural areas—and limited access to financial assets; (ii) women entrepreneurs are predominantly concentrated in the small and medium-sized enterprise (SME) sector; (iii) there are few formal financial institutions that offer products specifically designed to meet the needs of women; (iv) the majority of women rely on informal savings and loan schemes. Among the various measures that can be implemented to address the aforementioned challenges, the following are recommended: (i) introduce regulatory reforms and establish partnerships with financial market operators to develop products tailored to women in agriculture, market vendors, and low-income earners; (ii) develop targeted programs (including in local languages) to improve women’s financial and technological literacy across the country; (iii) develop public policies aimed at encouraging the formalization of women-owned businesses, which can significantly increase financial inclusion and women’s empowerment.

Conclusion

Given the challenges and constraints faced by Mozambican women regarding financial inclusion, it is crucial to apply interdisciplinary measures that involve the Government, Private Sector, and NGOs, so that the country can overcome the current constraints and reach SDG #5 while enjoying the benefits of including women in the formal financial sector.