Gender-Related Differences in Access to Financial Account in Sub-Saharan Africa

Abstract

This study analyzes the factors that account for the difference in access to financial account between women and men. To do so, a probit model and Fairlie's ([2005]. An extension of the Blinder-Oaxaca decomposition technique to logit and probit models. Journal of Economic and Social Measurement, 30(4), 305–316. https://doi.org/10.3233/JEM-2005-0259) decomposition method were applied to survey data collected in 2021 in 25 sub-Saharan Africa countries. The results show that, on average, 43.73% of men have access to a financial account compared to only 32.7% of women. The analysis shows that the contribution of factors to the difference varies according to country’s level of development. The difference is explained more by observable characteristics in high-income countries (79.6%) than in low-income countries (65%). Secondary school education is the most decisive factor but the contribution varies according to country development level. In terms of implications, financial inclusion policies for women need to be adapted according to country realities. Thus, in order for women to benefit from financial inclusion policies, it is important to encourage the education of women at least at secondary level by reducing or even abolishing school fees, and also creating a conducive environment to keep women in the education system for as long as possible.

KEYWORDS:

• Financial account
• financial inclusion
• gender economy
• sub-Saharan Africa

JEL:

• G2
• J71
• 055

Acknowledgements

The author would like to thank Professors Gervasio Semedo of the University of Tours (France), Esso- Hanam Atake of the University of Lome (Togo), and anonymous reviewers, for their valuable contributions to the creation of this paper.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 Sustainable Development Goals.

2 In a low-income country like Niger, the number of banking institutions is 14, compared with 28 in a high-income country like Côte d'Ivoire. The number of ATMs in Niger is 199, compared with 1174 in Côte d'Ivoire.

Additional information

Notes on contributors

Salamata Loaba

Salamata Loaba holds a PhD in economics. She is Associate Professor in the economics department of Thomas SANKARA University. She is interested in financial inclusion, financial education, social protection, gender and family economics.