E-Financial
Importance of Financing Women-Owned MSMEs in Global Supply Chain
By Omokehinde Adebanjo
There is significant evidence that women are the glue that hold their families, communities and even local economies together all over the world.
What I find enlightening is that this impact is particularly keenly felt in emerging economies such as those in Africa, where women are drivers of growth and widespread financial inclusion – which has been a key message coming out at the Women’s World Banking Making Finance Work for Women conference here in Dar Es Salaam.
In fact, we have done research into this trend through our Mastercard Index of Women’s Entrepreneurship (MIWE) and found that female entrepreneurs in developing countries are driven by resilience, determination and the desire to provide for their families.
Although the research was focused on only select markets initially, we learnt that women in these markets typically tap into local business opportunities that are not dependent on knowledge or innovation alone, effectively allowing them to avoid substantial financial, regulatory or technical constraints.
According to the index East Africa, specifically, shines in this area: the Index showed that Uganda has the highest percentage of female business owners in any of the 54 countries surveyed worldwide, with 34.8 percent of businesses in the country owned by women.
What’s more, Uganda’s women boast a 100 percent entrepreneurial activity rate, 93.9 percent labour participation rate and 90.5 percent borrowing or saving rate for the purposes of opening a business.
Uganda’s neighbour, Tanzania – where many of us are currently gathered for the Making Finance Work for Women Summit – is also making notable strides in this area, with dedicated programmes like the UN Joint Programme on Youth Employment helping many of the country’s young women entrepreneurs hone their own skills and capabilities as well as generate employment opportunities for other young people.
Likewise, the Kenyan Government has made provision for 33 percent of Government jobs and procurement opportunities to be accessed by women.
If we look at Nigeria, we also notice a high percentage of female entrepreneurship, with as many as 41 percent of the country’s women acting as entrepreneurs.
This is notably higher than many developed countries like the USA where only 10 percent of women are entrepreneurs and France where a tiny three percent of women are entrepreneurs.
These examples serve to illustrate the sheer value of women entrepreneurs, and why it is critical to finance women-owned businesses and micro, small or medium-sized enterprises (MSMEs) in supply chains – and in Africa, in particular – in order to truly be able to generate the economic growth that is necessary at local, national and global levels.
Collective Action Required To Support Women Entrepreneurs
Only through collective action can we hope to help bring vital cogs of development into formalised business processes as well as strengthen the overall ecosystem of vibrant and resilient women entrepreneurs.
This has been a key focus area for us at Mastercard for many years now, not only at a global level but across the African continent, which we recognise as a breeding ground for smart and innovative female entrepreneurs.
In this vein, we have partnered and collaborated with organisations from across the spectrum of the public and private sectors to broadly empower the continent’s women and provide them with the knowledge and tools necessary to start and sustainably grow their own businesses.
That included joining forces with African Women and Beyond (AWAB) in Kenya to launch the Africa Women Leadership Network (AWLN) last year to bring together like-minded women from various business sectors to tackle challenges facing women in East Africa, and more broadly across the continent.
In Nigeria, which is also a key growth market, we are starting to focus more on women empowerment. This includes our partnership with Mercy Corps to provide 2,500 girls with access to financial tools and entrepreneurship training.
Last year, together with UN Women, we signed a Memorandum of Understanding to bring more women into the formal financial fold and empower them through financial literacy training.
More than just enabling the country’s women to participate in formal financial activities through identity documents, we additionally partnered with the Youth for Technology Foundation to provide women entrepreneurs with the support and training they require to start and continue running their businesses.
Through the experience gained in the course of much of this work, we have noticed and learnt the importance of digitising operations and processes as a way of supporting women entrepreneurs. Practical examples of where we have introduced digital solutions that have considerably assisted women business owners of Micro, Small and Medium enterprises include Masterpass QR and 2KUZE.
Masterpass QR is our person-to-merchant, mobile-driven payment ecosystem that is in the process of being rolled out in 33 markets across Africa.
It addresses challenges with the acceptance of electronic payments for MSMEs without the need for expensive point-of-sale (POS) infrastructure. These women merchants can effectively accept fast and secure payments for their goods through their smart or feature phones.
The 2KUZE solution was introduced specifically to streamline the value chain for farmers in Kenya and Tanzania, where agriculture is the economic backbone.
It connects farmers, buyers and agents through both feature and smartphones and facilitates the entire transaction, removing the need for the country’s farmers to walk long distances to sell their produce at markets. As women play a critical role in the agricultural sector in these countries, it is a solution that has assisted them in running their businesses more efficiently.
Ultimately, what we can see is that when women are empowered through entrepreneurship and technology, they are able to make significant contributions to their economies. This makes it critical for us across industries and both the public and private sectors to band together and continue providing the financial and non-financial support these inspirational women require.
United Bank for Africa (UBA) has successfully completed its much-anticipated system upgrade, restoring all banking services to normalcy.
In a message to customers, UBA reassured customers that they could now log in to the mobile app and enjoy a smoother, more efficient banking experience.
The bank acknowledged any inconvenience caused by the process and reaffirmed its commitment to providing top-tier financial services.
“We are pleased to inform you that our mobile app upgrade has been completed, and all services have been fully restored. You can now log in and enjoy a smoother banking experience and improved services,” UBA announced.
While the upgrade promises enhanced functionality and reliability, UBA urged customers experiencing any lingering issues to reach out to its 24-hour Customer Fulfilment Centre via 02012808822 or email [email protected] for prompt assistance.
With the completion of the process, UBA reassured its customers of its dedication to innovation and excellence in banking.
Socio-Economic Rights and Accountability Project (SERAP) has called on the Central Bank of Nigeria (CBN) to immediately revoke its recent increase in Automated Teller Machine (ATM) transaction fees, describing the move as “Patently unlawful, unfair, unreasonable, and unjust.”
In an open letter addressed to Olayemi Cardoso, governor, CBN, and dated February 15, 2025, SERAP warned that the fee hike would worsen economic hardship for millions of Nigerians, particularly those at the lower end of the financial spectrum.
The rights group gave the apex bank a 48-hour deadline to reverse the policy or face legal action.
The CBN’s new directive mandated that ATM withdrawals at off-site locations, such as shopping malls, airports, and standalone cash points, will attract an N100 charge per N20,000 withdrawal.
Additionally, a surcharge of up to N500 may apply for transactions conducted at certain locations. The new fees are set to take effect from March 1, 2025.
In its letter, signed by Kolawole Oluwadare, deputy director, SRERAP criticized the policy, arguing that it would disproportionately affect struggling Nigerians while benefiting commercial banks.
“The manifestly unfair increase in ATM transaction fees will hit hardest those at the bottom of the economy and exacerbate the growing poverty in the country,” SERAP stated.
The organization further argued that financial institutions should bear the cost of banking operations, rather than shifting the burden onto customers, particularly those with limited financial means.
SERAP accused the CBN of prioritizing the interests of banks over the welfare of ordinary Nigerians, many of whom already struggle with the high cost of living.
The group pointed out that banks continue to report record-breaking profits while imposing excessive charges on customers.
“CBN policies should not be skewed against poor Nigerians and heavily in favour of banks that continue to declare trillions of naira in profits, mostly at the expense of their customers.
“The increase in ATM transaction fees will inflict misery on Nigerians and contribute to human rights abuses,” the letter read.
SERAP also noted that the policy contradicts President Bola Tinubu’s commitment to tackling poverty in Nigeria.
The rights group argued that the CBN’s action violates multiple legal provisions, including the Nigerian Constitution, the CBN Act, and the Federal Competition and Consumer Protection Act.
SERAP highlighted specific sections of these laws that prohibit unfair business practices and protect consumers from exploitative charges.
According to SERAP, the increase in ATM fees discriminates against low-income Nigerians who may struggle to afford the higher fees, creates a two-tiered financial system that favours the wealthy, contradicts the CBN’s stated mission to promote national economic well-being, and violates international human rights obligations under the United Nations Guiding Principles on Business and Human Rights,
“The CBN has responsibilities under the UNGPs to take effective steps to avoid or mitigate potential human rights harm and to consider ending any charges or transaction fees where severe negative human rights consequences cannot be avoided or mitigated,” SERAP asserted.
“We would be grateful if the recommended measures are taken within 48 hours of the receipt and/or publication of this letter.
“If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest,” the letter warned.
Federal government has engaged the World Bank for a fresh $300m loan to strengthen Nigeria’s health security infrastructure.
Information obtained from the World Bank showed that the loan, which is under consideration, will be implemented by the Nigeria Centre for Disease Control (NCDC) with the Federal Ministry of Finance acting as borrower on behalf of the Federal Government.
According to information on the World Bank website, the loan project is expected to “increase regional collaboration and health system capacities to prevent, detect, and respond to health emergencies in the Federal Republic of Nigeria.”
The project is currently in the pipeline stage, with the disclosure date scheduled for February 6, 2025.
The World Bank board is expected to give its approval on July 30, 2025, following necessary assessments. The appraisal is set for April 14, 2025, and implementation will commence in the 2026 fiscal year.
According to a document on the concept of environmental and social review, the Nigeria Health Security Programme aligns with broader government efforts to enhance disease surveillance, diagnostic capabilities, emergency response, and laboratory networks across the 36 states and the Federal Capital Territory.
The programme’s primary objective is to enhance regional collaboration and strengthen Nigeria’s health systems to deal with emergencies. It falls within the World Bank’s investment in health, nutrition, and population sectors across Western and Central Africa.
According to the Environmental and Social Review Summary of the project, HeSP will expand molecular laboratory capacity, upgrade primary healthcare centres, establish emergency operation centres, and construct warehouses.
It will also deploy mobile laboratories and install water, sanitation, and hygiene facilities alongside solar energy systems to support health infrastructure improvements.
Although the total project cost is yet to be determined, the World Bank has committed $300m to the initiative. The funds aim to bolster Nigeria’s pandemic preparedness and improve response mechanisms for public health threats.
The initiative comes as Nigeria strengthens its public health infrastructure following lessons from previous outbreaks, including COVID-19.
If approved, the loan will support the NCDC in improving disease surveillance, diagnostics, emergency response, and laboratory services.
Nigeria has previously secured funding from international financial institutions to boost healthcare resilience, including financing for vaccine procurement, emergency medical services, and infrastructure development.
However, the project, categorised as a high-priority public health intervention, carries substantial environmental and social risks due to potential health, safety, and ecological concerns associated with infrastructure expansion.
Identified risks include increased medical waste, occupational hazards, and heightened energy and water demands.
Social risks range from potential grievances from stakeholders to concerns over land acquisition and implementing health interventions in conflict-prone areas.
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