Journal of African Business Issue 6

MOBILE MONEY IS EMPOWERING WOMEN IN AFRICA
Financial inclusion is the most effective way of reducing inequalities. That is the view of Rashi
Gupta, Group Chief Operating Officer at MFS Africa, who outlines the several ways that mobile
money is enhancing the lives of African women in general, and entrepreneurs in particular.
The success of mobile money in Africa is well known. If you’ve paid any attention
to the continent’s financial and technology spaces over the past decade or so, you
probably won’t be surprised to learn that it accounts for around 70% of the world’s
$1-trillion mobile-money value.
You would probably also be unsurprised to learn that in Kenya, the country
that effectively kick-started Africa’s mobile money revolution, mobile money
transactions now account for 56.8% of GDP. What you might not know is that
mobile money has long played (and continues to play) an important role in
empowering women across Sub-Saharan Africa.
That’s important because, despite gains in political representation (in 11 African
countries, women hold over a third of parliamentary seats, more than in Europe),
gender inequality remains stark across Africa. While there are obviously differences
from country to country, women throughout the continent fare worse than their
male counterparts in a number of measures, including wages, investment, access
to capital and education.
Of course, mobile money can’t fix all of those issues on its own. That requires
serious investment as well as shifts in policy and societal attitudes. But it can play
a significant role in making life better for women across the continent, especially
when it comes to financial inclusion.
TAKING CARE OF BUSINESS
That’s not just conjecture either. Research conducted on behalf of the
World Bank shows just how substantial the impact has been. It notes, for
example, that mobile money has enabled Kenyan women to move away from
subsistence farming and towards business and retail, helping alleviate poverty
in the country.
The research further notes that for individuals and households, mobile money
can help reduce transaction costs, reduce travel costs and improve welfare by
smoothing unexpected income shocks, increase security and facilitate remittances.
Perhaps the most significant impact, however, lies in what mobile money can
do for female entrepreneurs.
Using mobile money leads to a 19.8% increase in the likelihood of female-led
businesses receiving investment from outside sources. Given that the average
capital investment by female-owned firms is more than six times lower than the
average for male-owned firms in Africa, that’s especially critical.
That same World Bank research shows that such female-owned businesses are
then more likely to invest that money in fixed assets and the expansion of their
business, more likely to offer credit to customers, demand credit and have better
relationships with suppliers.
Kenya has been a continental leader in mobile money for many years. Nairobi’s many entrepreneurs have adapted to technology with aplomb.
Credit: Antony Trivet on Pexels
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