Financial inclusion of women in Zambia Category: Lobbying and Advocacy Provision of Services Governance Membership strategy An initiative in lobbying and advocacy for advancement of women entrepreneurs → Conducted through a ‘snap survey’ and workshop for interaction between women entrepreneurs and members of the financial sector Zambia Federation of Employers Zambia Federation of Associations of Women in Business

Financial inclusion of women Objectives : o to highlight the financial situation of Zambian women entrepreneurs; o to showcase why financial inclusion of women makes good business sense in Zambia; and o to highlight the huge market potential for the financial sector from the women entrepreneurs. Target audience: the financial sector in Zambia, particularly the commercial banks. Zambia Federation of Employers Zambia Federation of Associations of Women in Business

Organizations involved: collaboration principally among the ILO, Bank of Zambia, Zambia Federation of Employers and Zambia Federation of Associations of Women in Business. Timing: survey conducted to coincide with workshop for interaction among women entrepreneurs and financial institutions. Financing: o financial support from ILO for the survey; o financial support from ILO and Bank of Zambia for the workshop. Financial inclusion of women Zambia Federation of Employers Zambia Federation of Associations of Women in Business

Main activities: 1)Survey of women entrepreneurs’ access to finance in Zambia: a)Demand-side:  how women finance start-up and expansion of businesses;  women’s access to general financial services; and  women’s knowledge of existing financial services. b)Supply-side:  demand-side findings revealed that the gaps in access to finance for women constitute potential market for financial sector. Compiled a report on the findings on the supply-demand gap, which showed why financial inclusion of women makes good business sense for the financial sector in Zambia and good overall economic sense for the country. Financial inclusion of women Zambia Federation of Employers Zambia Federation of Associations of Women in Business

1)Survey of women entrepreneurs’ access to finance in Zambia (cont.): findings were that majority of successful women entrepreneurs in Zambia never borrow when starting business, usually due to prohibitive conditions; showed that lack of financial access continues to be a hindrance to enterprise growth; showed worryingly low levels of appreciation of financial services among women; and revealed a good proportion of bankable women remaining un-banked as a result. 2)Workshop to present survey findings and use them to: engage women on views on access to finance; show financial institutions the potential for business in the un-tapped market of women entrepreneurs. Financial inclusion of women Zambia Federation of Employers Zambia Federation of Associations of Women in Business

3)Findings were also incorporated into Private sector Alliance Business Agenda (advocacy document for private sector in Zambia). Financial inclusion of women Zambia Federation of Employers Zambia Federation of Associations of Women in Business

Summary of key results: i.for the organizations involved: better understanding of the existing situation; ii.for the financial institutions: discovery of an un-tapped market previously not seen; iii.for the Bank of Zambia (Central Bank): factored as an additional component in its financial literacy programme, boosting its importance; iv.for Zambia Federation of Employers and the wider private sector: offered a new perspective on the challenges faced by women entrepreneurs, thereby improving effectiveness of advocacy; v.for women entrepreneurs: new pro-activity by commercial banks to tailor services to them and seek them out as clients; vi.for the labor market: better access to financing by women entrepreneurs increases employment opportunities as they tend to focus on labor-intensive businesses; and vii.for wider economy: private sector groups forming new women-focused financial institutions with specific intention of growing from micro-finance to commercial bank status. Financial inclusion of women Zambia Federation of Employers Zambia Federation of Associations of Women in Business

Outstanding challenges: o formal banking system still remains largely MSMEs- unfriendly. Women entrepreneurs make up the majority of the sector; o still a relatively high degree of low financial literacy in the country generally, more so among women; and o risk-averse culture of the country in general impeding programmes for greater financial inclusion and use of formal financial services. Financial inclusion of women Zambia Federation of Employers Zambia Federation of Associations of Women in Business

Supporting documents Hazele (2013): Study on the financial inclusion of women in Zambia. Contact details Zambia Federation of Employers Zambia Federation of Associations of Women in Business Financial inclusion of women Zambia Federation of Employers (ZFE) 6662 Mberere Road P.O. Box Lusaka, Zambia Zambia Federation of Associations of Women in Business (ZAFAWIB) 297A Leopards Hill Road P.O. Box Lusaka, Zambia

FINANCIAL INCLUSION OF WOMEN MAKES GOOD SENSE:  to the financial sector;  to women entrepreneurs;  to the labor market; and  to the wider economy as a whole. THANK YOU Financial inclusion of women Zambia Federation of Employers Zambia Federation of Associations of Women in Business