Financial institutions must rethink traditional lending models and increase access to capital for women-led businesses, a move seen as vital for economic expansion and financial inclusion.
At this year’s Aggrey-Fraser-Guggisberg Memorial Lectures, Mrs. Josephine Anan-Ankomah, Regional Executive at Ecobank for Central, Eastern, and Southern Africa and Managing Director of Ecobank Kenya, made a compelling case for expanding financial support to women entrepreneurs. Speaking on the theme “Her Money, Her Power: Making Finance Work for Women,” she highlighted the significant economic potential of women-led enterprises and the structural barriers that hinder their access to credit.
Despite the growing presence of women in business, restrictive lending practices continue to sideline women entrepreneurs, limiting their ability to scale and contribute fully to economic development. Mrs. Anan-Ankomah underscored the need for policy reforms, gender-focused financial products, and a shift in banking culture to bridge this persistent financial gap.
“Women-led businesses grow incrementally rather than exponentially. The irony is banks are missing out on a golden opportunity,” she stated, urging financial institutions to rethink their risk assessments and lending strategies.
She further noted that women entrepreneurs have proven to be more reliable borrowers, with lower Non-Performing Loan (NPL) ratios compared to their male counterparts. However, the traditional banking model, which prioritizes collateral over potential, continues to prevent many promising women-led businesses from securing the necessary funding to thrive.
Mrs. Anan-Ankomah called for a three-pronged strategy to close the financial gap for women-led businesses:
Innovative Financial Products: Developing collateral-free lending solutions tailored to women entrepreneurs.
Policy Reforms: Encouraging government intervention to establish incentives for banks that prioritize women-led enterprises.
Cultural Shift in Banking: Training financial institutions to recognize the long-term value of investing in women’s businesses.
Increasing access to credit for women-led enterprises has broader economic benefits, including job creation, improved household income, and enhanced financial stability. Financial experts argue that empowering women financially leads to greater economic resilience and long-term growth.
As Ghana and other African economies push for greater financial inclusion, Mrs. Anan-Ankomah’s call serves as a reminder that sustainable economic development hinges on equal access to financial resources. Banks that align their strategies with this vision stand to gain not just in profitability but in fostering a more inclusive and prosperous economy.
