The funding challenges faced by women entrepreneurs are receiving significant attention from Ghana’s two major political parties, the New Patriotic Party (NPP) and the National Democratic Congress (NDC). Both presidential candidates are focusing on sustainable funding solutions for women in business as a central theme of their campaigns.
Women entrepreneurs are often disadvantaged when it comes to accessing funds due to stringent requirements like collateral security. A recent report from the Collateral Registry shows that male borrowers and male-owned businesses accounted for the majority share of the total value of secured loans, which grew by 122.7% from GHS 2.2 billion in Q2 2023 to GHS 4.9 billion in Q2 2024. In contrast, loans to female borrowers and female-owned businesses increased by just 42.6%, reaching GHS 1.1 billion.
These challenges are likely to receive significant attention from either party, regardless of the outcome of the December elections.
NDC Flagbearer John Mahama has promised to reduce the gender gap in financial inclusion by promoting women-owned financial institutions. He expressed concern about the widening gender disparity in financial access, citing that the gap increased from 3% in 2014 to 11% in 2021, according to Global Findex Reports. Mahama emphasized the need for targeted financial support, as women make up over 50% of Ghana’s population and own 44% of micro, small, and medium-sized enterprises (MSMEs).
One of Mahama’s key proposals is the creation of a Women’s Development Bank, a central policy in his platform. He also proposed the establishment of innovation hubs through public-private partnerships to harness technology for economic growth, as well as a $50 million Fintech Transformative Growth Fund to support Ghanaian fintech companies, particularly those led by women.
On the other hand, NPP Flagbearer Dr. Mahamudu Bawumia has also committed to supporting women-owned businesses. During a campaign tour in Accra, he promised to create a Women’s Trade Empowerment Fund and an SME bank to offer easier access to financing for traders and SMEs, which he identified as a significant challenge. He assured traders that his administration would work to create a conducive business environment, especially for women entrepreneurs.
Both Mahama and Bawumia have made financial inclusion and women’s economic empowerment central to their platforms, underscoring their shared focus on fostering growth and reducing gender inequalities in Ghana.
This increased attention on women-owned businesses is not surprising, given that women make up 50.13% of Ghana’s population, according to the World Bank’s development indicators. Both candidates recognize the importance of empowering women in business to drive economic growth and reduce financial disparities.
