CEMAC panel interview series: Agnès OUNOUNOU
Welcome to our interview series featuring the CEMAC advisory panel. Each week, we’ll share insights from panelists on women's financial inclusion and consumer protection — and the role of public policy in creating better conditions within their regions.
This week, we hear from Agnès OUNOUNOU from the Republic of Congo. She has worked for women's economic empowerment and financial inclusion for more than 20 years. She supports many people in the creation of enterprises in the social and solidarity economy.
Question 1: What do you think are the most important barriers to financial inclusion for women in your region?
Agnès OUNOUNOU (AO): From my experience with women in my region as a social entrepreneur and civil society actor who works daily in their empowerment support, I argue that the most important barriers to the financial inclusion of women are linked to demand and supply constraints:
Demand-side constraints that limit women's access to financial services
Women rarely own assets demanded by financial institutions as collateral, such as title deeds. Access to financial products like bank accounts sometimes requires the husband's consent because of the traditional gender roles that prevail in most households. Many do not have bank accounts. It should also be noted, even those who are account holders, they continue to pay for services, including their bills, in cash.
The culture is also that men are responsible for household finances, which reinforces the lack of financial autonomy of women.
As for women living in rural areas, who constitute the majority of women in Republic of Congo, they have the lowest levels of income, education and literacy. They also have difficulty understanding paperwork, reading brochures and filling out forms. Many do not have official documents. And, in addition, women, due to customs, as well as limited free time, do not have the mobility necessary to interact with financial service providers. They have less free time than men, because of their family and household responsibilities, which place a double burden on them. They are also suspicious of financial institutions. They are deprived of funds that prevent them from investing in their livelihood activities, nor improving their productivity and income.
Supply-side constraints that limit the reach of financial institutions
Financial services do not meet the needs of women in terms of growing their business or managing the family budget. The proposed offerings do not take into account these criteria. Women have always told me that they are both "income-generating women" and "housewives" at the same time.
Many aspects of the microfinance products available today do not meet the needs of women. High transaction costs are often obstacles, even in microfinance institutions. Microfinance delivery channels are often not designed with an understanding of women's access to them.
Additionally, most banks or microfinance institutions are located in urban areas in large cities, which is difficult for women to access as a result of cultural restrictions as well as their domestic obligations. Women rarely have the opportunity to travel to the nearest town. They must therefore entrust the management of finances to their husband who can go to the bank.
Women also lack information. It is rare for women to hold leadership positions or sit on the boards of financial institutions or to have women in other positions of power who could implement the changes required to adapt and develop financial products and services that meet the needs and concerns of women.
Question 2: Why is consumer protection important, especially for women?
AO: Consumer protection is important because it aims to protect consumers when dealing with financial service providers as well as to instill trust in these institutions. Today, although digital technologies hold great potential for improving the well-being of people, they also present considerable risks, such as the creation of digital monopolies, cyber attacks or digital fraud.
When excluded women first use digital technologies, they are particularly exposed to these risks, but also to others, such as new forms of gender-based or sexual violence on digital networks and online harassment. Consumers of financial products must understand their rights and duties.
Question 3. How can you effectively advocate for public policies and regulations that consider the needs of women?
AO: As a member of the advisory panel for UNCDF and belonging to a civil society organization known as MMFLP, my plea is addressed to policymakers, namely government entities, banks and regulators, to promote inclusion financial support of women by:
Sensitizing political decision-makers and all stakeholders to the financial needs of women in the different financial markets, by establishing a political dialogue with female leaders or by involving associations or networks to advance financial inclusion in the region through actions concrete.
Modifying and adapting the legal and regulatory frameworks, removing discriminatory obstacles and giving scope for innovation in order to allow a more favorable environment for the financial inclusion of women.
Prohibiting any discrimination in access to financial services based on sex or marital status
Informing and raising awareness when discriminatory clauses have been removed, particularly with regard to land ownership and property rights.
Enforcing policies that encourage the adoption and use of a low-cost, accessible basic transactional or savings bank account or those of alternative banking solutions.
Investing in financial education programs for women so that they can act as more informed and knowledgeable consumers on all financial products and services and while encouraging the private sector and civil society to participate.
Innovating financial products and services that should be diversified and adapted to the needs of women.
Improving women's access to financial services infrastructure.
Designing specific financial and guarantee products to facilitate women's access to finance for SMEs and small farms run by women.
Increasing the representation of women in decision-making bodies in the financial services sector to promote policy change, more effective governance and stronger management of financial institutions.
Encouraging the establishment and strengthening of associations and networks of women who work daily for the financial inclusion of women.
Improving and strengthening regulation of consumer protection, taking into account the concerns and problems of female consumers and reconciling protection and extension of the scope of services.
The next few months
As the Panel continues its work over the next few months, we hope to support the participants in translating their insights and experiences into work that can be taken up by public sector decision-makers.
If you have ideas from how to improve women’s financial inclusion in the CEMAC region, please don’t hesitate to contact us.
Authors
Alexis Ditkowsky