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Central African Republic: Financial Inclusion Elusive for Women Despite Efforts

Despite recent attempts to promote financial inclusion in the Central African Republic, women continue to be largely excluded from the formal financial sector. According to World Bank data, a staggering 74% of women in the country were left out of the formal financial system in 2017.

The Challenge of Financial Exclusion

The lack of inclusion is compounded by the fact that women’s voices are often absent from policy-making processes related to financial services. This lack of representation and participation can lead to a failure to address the specific needs and constraints faced by women, perpetuating their exclusion from the formal financial sector.

Addressing the Challenge

In response to this challenge, the United Nations Capital Development Fund (UNCDF) established an advisory panel on “Women and Digital Financial Services” in early 2021. The panel comprises experts from six CEMAC countries and aims to facilitate dialogue between civil society representatives and regulators.

Action Plans for Improving Access

The panel developed action plans aimed at:

  • Improving access to digital financial services by women
  • Strengthening their financial education
  • Protecting them as consumers of digital financial services

These proposals were presented to regional and national regulators, including the Bank of Central African States (BEAC) and National Economic and Financial Committees (CNEF), on June 16.

Progress and Next Steps

As a result of the presentation, panel members were invited to participate in the development of the Regional Strategy for Financial Inclusion plan, hosted by BEAC and PHB. The UNCDF is also organizing public-private dialogues with national decision-makers and private sector stakeholders in September to discuss the proposals and potential actions to improve financial inclusion at the national level.

Recommendations

The advisory panel’s recommendations include:

  • Improving women’s access to digital financial services
  • Creating low-amount capped mobile money accounts with no identification requirements
  • Setting up a one-stop shop dedicated to financial inclusion within town halls
  • Establishing a tax regime conducive to the development of digital financial services
  • Lightening the tax regime for small and medium-sized enterprises (SMEs) and start-ups owned by women
  • Providing a guarantee fund for women
  • Strengthening parity in the governance of financial institutions
  • Encouraging data collection and analysis by gender in the public and private sectors
  • Encouraging competition and fair access to digital financial services
  • Strengthening financial and digital education

Conclusion

While progress is being made, the challenges facing women’s financial inclusion in the Central African Republic remain significant. Efforts to promote financial inclusion must continue, with a focus on addressing the specific needs and constraints faced by women.