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Africa Leads in Creating Resilient Women Entrepreneurs – Mastercard Index

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Following the release of the Mastercard Index of Women’s Entrepreneurship (MIWE) on Tuesday, it was revealed that 34.8 percent of businesses in Uganda are owned by women, making it one of the top performing African countries highlighted in the index.

The MIWE is a weighted index that helps to better understand and identify factors and conditions that are most conducive to closing the gender gap among business owners in any given economy.

The three factors include Women’s Advancement Outcomes, Access to Knowledge and Financial Services, and Supporting Entrepreneurial Factors.

The Mastercard Index of Women Entrepreneurs tracks female entrepreneurs’ ability to capitalise on opportunities granted through various supporting conditions within their local environments and is the weighted sum of three components: 1) Women’s Advancement Outcomes (degree of bias against women as workforce participants, political and business leaders, as well as the financial strength and entrepreneurial inclination of women), 2) Knowledge Assets and Financial Assets (degree of access women have to basic financial services, advanced knowledge assets, and support for small and medium enterprises), and 3) Supporting Entrepreneurial Conditions (overall perceptions on the ease on conducting business locally, quality of local governance, women’s perception of safety levels and cultural perception of women’s household financial influence).

For the 2016 Index, Mastercard examined 54 different economies around the globe, including Botswana, Ethiopia, South Africa and Uganda.

Uganda scored particularly well in terms of advancement outcomes: the women entrepreneurial activity rate was 100 percent, with its labour force participation rate at 93.9 percent, making the country top in these areas worldwide.

Uganda also excelled in sharing knowledge assets with women and providing financial access, with 90.5 percent borrowing or saving to open a business – higher than the 52.4 percent average of other low to lower middle income countries – and a 95.8 percent gross women tertiary education enrolment rate.

When compared to other African markets surveyed Botswana leads the charge with the highest rate of women’s advancement outcomes, at 62.6 percent, and was also rated highest (66.6 percent) for providing supportive entrepreneurial conditions. South Africa earned the top spot for women’s access to financial instruments and knowledge assets in Africa, with 86.7 percent of the populace’s women entrepreneurs having access to knowledge assets and capital.

The Index results revealed that female entrepreneurs in developing countries are driven by resilience, determination and the desire to provide for their families.

The findings reinforce that women entrepreneurs are the backbone of economic growth and powerful engines of development and financial inclusion, especially in Africa.

Women in these emerging markets tend to tap into local business opportunities that do not rely on knowledge or innovation alone – effectively allowing them to avoid financial, regulatory or technical constraints.

“The result of this survey collaborates an economic reality in Africa that women continue to overcome formidable challenges to remain a cornerstone of trade and productivity on the continent,” said Daniel Monehin, Division President for Sub-Saharan Africa and head of Financial Inclusion for International Markets at Mastercard.

“To further boost entrepreneurship among women in Africa, Mastercard has collaborated with a number of partners in the public and private sectors in our markets across Africa to drive greater levels of female entrepreneurship and inclusion in the economy. These include Mercy Corps, Youth for Technology Foundation, UN Women and Junior Achievement South Africa.”

According to the Index, some of the main challenges that currently prevent women from venturing into business include lack of financial funding or venture capital, regulatory restrictions and institutional inefficiencies, lack of self-belief and entrepreneurial drive, fear of failure, socio-cultural restrictions, and lack of training and education.

These constraints are acting as barriers preventing women from starting businesses in the majority of the 54 countries surveyed. For instance, the survey found that even in Australia – ranked seventh overall – the rate of women borrowing or saving to start their own business was only 35.5 percent, below the average of 38.5 percent of other high income economies.

In France, another high income economy, that rate was 36 percent while in Ireland it was 30.3 percent.

Although New Zealand topped the Index and was followed by predominantly developed markets based on their robust small and mid-sized business communities, high quality of governance and ease of doing business.

Women entrepreneurs in Africa and other developing markets have proven to be equally vibrant, resourceful and innovative in finding opportunities to improve their own lives as well as create a better future for their children.

An interesting outcome of the Index is that cultural perceptions of women entrepreneurs in Africa are predominantly positive – at 68.8 percent in Uganda, this is well above the average of 41.3 percent.

“We cannot underestimate the contribution women entrepreneurs make in Africa, more must be done to support them to ensure they are able to sustain and grow their businesses. These resilient business owners are a vital part of a thriving ecosystem, and Africa is showing the rest of the world that they are serious about supporting women in business as it develops a more financial inclusive continent,” concludes Monehin.

Women Business Owners As A % Of All Business Owners – Top 10 Markets

Uganda – 34.8 percent; Botswana – 34.6 percent; New Zealand – 33.3 percent; Russia – 32.6 percent; Austria – 32.4 percent; Bangladesh – 31.6 percent; Vietnam – 31.4 percent; China – 30.9 percent; Spain – 30.8 percent; United States – 30.7 percent.

Mastercard Index of Women Entrepreneurs – Top 10 markets with the strongest supporting conditions and opportunities for women to thrive as entrepreneurs are, New Zealand – 74.4; Canada – 72.4; United States – 69.9; Sweden – 69.6; Singapore – 69.5; Belgium – 69.0; Australia – 68.5; Philippines – 68.4; United Kingdom – 67.9; Thailand – 67.5.

 


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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