Gender-Inclusive Lending Improves in Africa, Survey Reveals

European Investment Bank (EIB) Survey Highlights Gender-Inclusive Banking in sub-Saharan Africa noting that banks are making improvements in balanced gender lending. According to the European Investment Bank’s Finance in Africa 2024 report, 72% of institutions now have a gender strategy while 17% of the institutions are planning to implement one.

This survey by EIB, conducted across 51 banks, reveals that two-thirds offer women-specific financial products and notably, 70% of banks report lower non-performing loan rates among female-led businesses.

While 59% of banks report no gender disparity in loan sizes, 38% acknowledge that female-led businesses typically receive smaller loans than their male
counterparts.The report also highlights challenges and developments in Africa’s financial sector, including concerns about economic conditions (cited by 77% of banks) and asset quality (53%).

The fintech sector has grown, with the number of companies increasing from 450 in 2020 to 1,263 in early 2024, though private-sector credit has declined from 56% of GDP in 2007 to 36% in 2022.

Climate change emerges as a concern, with 34% of banks reporting asset quality deterioration due to extreme weather events, particularly affecting SMEs. In contrast, the report identifies Africa as one of the regions most vulnerable to climate change’s physical risks.