3. Understanding Financial Inclusion in Africa from the Perspective of Saving and Borrowing Patterns

In Africa, women’s access to finance is extremely low, leaving them at the mercy of systems that are not structured to favour them. The ability to save and borrow easily is critical to the financial empowerment of the African woman. This study, therefore, examines the savings and borrowing patterns of Africans through the gender and income status lenses. Although the general savings and borrowing distribution patterns of both genders are similar, a stark contrast is observed with respect to savings clubs. The findings indicate a strong inclination towards saving with a savings club for women compared to saving with a financial institution. Moreover, more women than men save (rather than borrow) to start, operate or expand a farm or a business even though the tails of the female borrowing behaviour showcases distinct characteristics in this regard. Additionally, it was established that men’s saving and credit disposition significantly impacts women’s financial behaviour. From an income status perspective, low-income countries are more visible in clusters that do not account for upper-middle-income countries. Therefore, to achieve the target for financial inclusion in Africa, it is recommended that policies which strengthen savings clubs should be enacted and thoroughly implemented whilst maintaining a well-established synergy between gender-targeted policies. Special finance-related quotas should be provided for low-income countries at regional and continental levels. All the highlighted recommendations have been aligned with selected United Nations Sustainable Development Goals.