In many parts of Africa, women face systemic barriers to financial independence — from wage inequality to limited access to credit and investment opportunities. According to a 2021 World Bank report, women in sub-Saharan Africa earn about 23 per cent less than men on the average, while only 34 per cent of women have access to financial services compared to 51 per cent of men. These challenges create a glaring wealth gap that perpetuates economic vulnerability for women across the continent.
However, personal finance education and empowerment can serve as a powerful antidote to these systemic inequalities. By equipping women with the knowledge and tools to manage their finances effectively, we can pave the way for greater financial autonomy and economic stability.
The gender wealth gap in Africa
The gender wealth gap is a multifaceted issue rooted in historical, cultural, and economic disparities. A 2022 McKinsey report found that African women contribute over 40 per cent to the continent’s GDP, yet they own less than 10% of its wealth. This disparity is fueled by:
- Income inequality: Women in Africa are overrepresented in low-paying, informal sectors such as agriculture and domestic work
- Financial exclusion: Many women lack access to credit, investment platforms, and financial literacy programs
- Cultural barriers: In some African communities, cultural norms discourage women from owning property or controlling household finances.
Director-General of the World Trade Organisation, Dr. Ngozi Okonjo-Iweala, states: ‘Investing in women is not just about fairness — it’s smart economics. Empowering women financially unlocks growth for families, communities, and entire nations’.
Why personal finance matters for African women
Personal finance isn’t just about money management; it’s about empowerment, independence, and building a sustainable future. For African women, this empowerment can have transformative effects on individual lives and entire communities.
1. Reducing financial dependence
In many African households, financial decision-making is often male-dominated. This dependence leaves women vulnerable to abuse, neglect, and poverty. By managing their own finances, women gain control over their economic future.
A 2023 UN Women report highlighted that financially independent women are 40 per cent, less likely to remain in abusive relationships, underscoring the role of personal finance in fostering autonomy and safety.
2. Breaking the cycle of poverty
Financial literacy enables women to save, invest, and make informed decisions. A study by the African Development Bank found that women who receive financial education are 20 per cent more likely to start small businesses, which can create a ripple effect of economic empowerment within their communities.
‘Teach a woman to save, and you’ve taught a family to thrive’, says renowned Nigerian finance expert and author, Nimi Akinkugbe.
3. Access to credit and investment opportunities
Access to credit remains a significant barrier for women in Africa. According to the Global Findex Database, only 27 per cent of women in sub-Saharan Africa have access to formal financial institutions. Financial education equips women with the knowledge to leverage microfinance, cooperative savings, and fintech platforms to access credit and build wealth.
Success stories: African women thriving through personal finance
1. Nigeria: Women leveraging fintech for growth
Fintech platforms like PiggyVest and Cowrywise have empowered thousands of Nigerian women to save and invest effectively. For example, 75 per cent of users on PiggyVest are women who collectively saved over ₦1 billion in 2023. These platforms eliminate barriers such as high entry costs and limited financial literacy by providing user-friendly tools and education.
2. Kenya: Empowering women entrepreneurs
In Kenya, M-Pesa, a mobile money platform, has revolutionized access to financial services for women in rural areas. A 2022 study by MIT found that M-Pesa lifted 2 per cent of Kenyan households out of poverty, with women-led households benefiting disproportionately.
3. South Africa: Addressing wage disparities
In South Africa, initiatives like the Women in Finance Network aim to bridge the wage gap by mentoring and educating women in financial management and career advancement. The program has supported over 5,000 women in attaining higher-paying roles and negotiating better wages.
How governments and organisations can support women’s financial empowerment
1. Policy interventions
Governments must prioritise gender-inclusive policies that address wage inequality, ensure property rights for women, and expand access to financial services.
In Rwanda, government-led gender quotas have significantly improved women’s participation in leadership and economic decision-making, contributing to a narrowing gender wealth gap.
2. Financial literacy programmes
Public and private institutions should invest in grassroots financial literacy campaigns targeting women. For instance, the Nigerian Stock Exchange runs an annual X-Academy Women in Finance Workshop to teach women investment strategies.
3. Leveraging technology
Fintech companies play a critical role in democratizing access to financial services for women. In Nigeria, apps like Shecluded provide tailored financial education and loans for women entrepreneurs.
Quotes from experts and advocates
- Chimamanda Ngozi Adichie, Nigerian author: ‘Empowering women economically is not just about fairness — it’s about progress. When women thrive, societies thrive’
- Graça Machel, former First Lady of Mozambique: ‘When we empower women with financial tools, we empower them to rewrite their stories and uplift their communities’
- Ngozi Okonjo-Iweala, WTO Director-General: ‘Financial literacy and inclusion are the twin engines that drive gender equality and economic growth in Africa’.
Conclusion
Personal finance is more than a skill; it’s a lifeline for women across Africa. By addressing the systemic barriers that perpetuate the gender wealth gap and equipping women with the tools to manage their finances, we can unlock economic prosperity for millions.
As we continue to fight for gender equality, the words of Nigerian finance expert, Arese Ugwu resonate deeply: ‘A financially empowered woman is unstoppable. She becomes a force for change, not just for herself, but for her family and community’.
By prioritising personal finance education and policy reforms, Africa can take a significant step toward a future where every woman has the opportunity to thrive.
Dr. Amana is CEO of Rich Aunty Finance, a leading fund management company
