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Women’s Financial Inclusion in Samoa: A Path to Prosperity

In a country where financial inclusion is still a challenge, women in Samoa have shown remarkable aptitude in managing household finances. According to the National Financial Inclusion Taskforce, 48% of women receive remittances compared to 39% of men. However, despite this progress, many women remain excluded from the formal finance sector.

The Challenge

A significant proportion of women (40%) have bank accounts, but a larger number still rely on informal financial services (17%). The reasons are varied, including:

  • High transaction costs
  • Cultural and social barriers
  • Limited access to financial institutions in rural areas

These challenges hinder the ability of women to participate fully in the formal economy.

The Solution

To address these issues, the Government of Samoa has implemented the National Financial Inclusion Strategy 2017-2020, which aims to:

  • Increase access and usage of financial services
  • Improve and deepen access to financial services
  • Empower underserved segments like women and youth
  • Promote digital financial services
  • Increase resilience to economic shocks

The Role of the Asian Development Bank

The Asian Development Bank (ADB) has been supporting Samoa’s efforts to improve its finance sector through the Pacific Private Sector Development Initiative. The ADB has helped the Development Bank of Samoa develop a secured transactions-based lending product for the agriculture sector, which is expected to benefit rural women and farmers.

The Way Forward

To achieve financial inclusion, Samoa needs to:

  • Complete reforms recommended by the International Monetary Fund (IMF)
    • Strengthen the regulatory framework
    • Develop a governance framework for public financial institutions
    • Establish a credit bureau

The government has outlined six objectives to achieve an inclusive financial system, and with support from organizations like the ADB, women in Samoa can look forward to greater financial empowerment.

References

  • Asian Development Bank. (2019). Asian Development Outlook 2019: Strengthening Disaster Resilience.
  • National Financial Inclusion Taskforce. (n.d.). National Financial Inclusion Strategy for Samoa 2017-2020.
  • Pacific Financial Inclusion Program. (2012). The Financial Competency of Low-Income Households in Samoa.
  • International Monetary Fund. (2015a). Samoa: Financial system stability assessment.
  • International Monetary Fund. (2015b). Samoa: Staff report for the 2015 Article IV consultation.
  • DOI: http://dx.doi.org/10.22617/BRF190376-2