ADDIS ABABA- The National Bank of Ethiopia (NBE) has launched the Network of Ethiopia’s Women in Finance (NEWFin), initiative designed to bridge the gender gap in leadership within Ethiopia’s financial sector and foster women’s financial inclusion.
At the launching ceremony, NBE Governor Mamo Mihretu stated that the pioneering initiative would help to address the issue of access to finance, and contributing to women’s economic empowerment nationwide.
“NEWFin is a commitment to transforming the financial sector which truly empowers women and enabling them to thrive as leaders and drive gender equality.”
Through targeted actions, skill training, networking, mentorship programs and advocacy for gender inclusive policy, it seeks to address the barriers of women in career, progression and representation in leadership roles, he noted.
As to him, the underrepresentation of women in the financial sector both in the demand, and supply sides, is not merely a matter of equity but it is a matter of efficiency, sustainability, sound policy and public confidence.
On the demand sides, addressing the gender gap in account ownership, access to capital, can bring tangible results to both financial institutions and to wider economy.
Researches consistently show that organizations with diverse leadership outperform their peers with reputability,
innovation and risk management, he said. In Ethiopia, women currently hold 11 to 15 of senior management positions across financial institutions which hinder collective growth.
Moreover, the social structure including the working environment makes it also difficult for women to balance work and life. So, many of them are forced to choose one of the other, he stressed.
In response, the second national financial inclusion strategy is gender intentional which not only mainstreams action and achieving gender equality in financial services but also includes a dedicated action program with seven priority actions and initiatives aimed enhancing women’s access to finance.
He further highlighted the launching and implementation of the first financial inclusion strategy marked historical milestone which helped double financial inclusion levels. In 2014, 22% of the population had an account, this increased to an estimated 45% in 2020 and more than 50% in 2022.
However, one of the areas that the first strategy did not make a progress was in women financial inclusion. Thus, the second strategy noted the widening gap between men and women in financial inclusion.
“The mission of closing the gender gap in financial sector is a defining and key priority for NBE. Thus, we are dedicating to fostering an environment where women’s voice are heard as well as shape the future of Ethiopia in financial sector,” he underscored.
ZamZam Bank CEO Melika Bedri noted that NEWFin is a big initiative taken by the NBE which not only targets addressing the gender gap of women but also promoting inclusive policies in all terms.
The newly appointed Chairperson of NEWfin further indicated that it also aims at making the financial sector work better for women.
It is critical to having more women have a seat at the table when it comes to making decision around financial sector, said World Bank, Head of Africa, Gender Innovation Lab (GIL), Michael O’sullivan.
He stressed that the initiative is vital to expand and deepen the network of women leaders within management positions across financial institutions.
BY BETELHEM BEDLU
THE ETHIOPIAN HERALD FRIDAY 29 MARCH 2024
