Unlocking women’s economic power through digital public infrastructure

Digital Financial Inclusion and Sustainable Development Goals

Introduction

Digital financial tools and services like online bank accounts and loan applications have significantly contributed to financial inclusion, particularly for women. However, women still face various barriers to accessing these tools, such as cultural norms, limited internet connectivity, lack of smartphones, and low digital literacy.

National Digital Public Infrastructure (DPI)

One promising solution to address these barriers is the establishment of national digital public infrastructure (DPI) by governments. DPI includes digital IDs, digital payments, and data exchange systems that work together to accelerate broad socioeconomic progress. Similar to physical roads, digital infrastructure supports the delivery of essential services and creates economic opportunities in sectors like finance, agriculture, and health.

DPI Expansion across Africa

African countries are making significant progress in implementing DPI. For example, Morocco and Ethiopia have rolled out national digital ID systems, allowing people to access government services, healthcare, and open bank accounts without extensive paperwork or in-person visits. Cameroon, Ghana, Rwanda, and Zambia have also implemented national interoperable and inclusive digital payment systems, reducing dependence on cash and enabling individuals to build credit records for loans and insurance.

Women and Youth Financial & Economic Inclusion Initiative (WYFEI 2030)

The African Union Commission’s Women and Youth Financial & Economic Inclusion (WYFEI 2030) initiative aims to unlock US$100 billion to expand economic opportunities for at least 10 million women and young people in Africa by 2030. This initiative emphasizes digital financial inclusion built on DPI. WYFEI 2030 partners with the African Continental Free Trade Area (AfCFTA) Hub to support micro, small, and medium enterprises (MSMEs) run by young women.

AfCFTA Hub and Cross-Border Business

The AfCFTA Hub plans to provide MSMEs with a continentwide digital ID separate from national IDs, facilitating cross-border business. This digital ID will enable digital submission of government paperwork, connection to customers in different countries, cross-border digital payments, and access to market and business development data. MSMEs play a crucial role in Africa’s economic growth, accounting for 90% of the private sector, 80% of jobs, and 40% of GDP. However, inadequate border management and standardized systems hinder women’s ability to benefit from regional markets and value chains.

Investing in Inclusive DPI

Investing in DPI goes beyond technology development. It involves creating inclusive, secure, and responsive systems that meet women’s needs and provide opportunities for financial stability and economic power. By embracing and investing in transformative digital systems, we can unlock women’s full potential and create a more inclusive and equitable world.

SDGs, Targets, and Indicators

1. SDG 5: Gender Equality

   • Target 5.1: End all forms of discrimination against all women and girls everywhere
   • Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life
   • Indicator: Women’s access to and usage of digital financial tools and services

2. SDG 8: Decent Work and Economic Growth

   • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation
   • Target 8.10: Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance, and financial services for all
   • Indicator: Access to digital payments and credit for women-owned micro, small, and medium enterprises (MSMEs)

3. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being
   • Target 9.3: Increase the access of small-scale industrial and other enterprises, particularly in developing countries, to financial services, including affordable credit, and their integration into value chains and markets
   • Indicator: Expansion of national digital public infrastructure (DPI) systems, including digital IDs, digital payments, and data exchange systems

4. SDG 10: Reduced Inequalities

   • Target 10.2: Empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion, or economic or other status
   • Indicator: Inclusion of women and their needs in the design and implementation of digital public infrastructure systems

Table: SDGs, Targets, and Indicators

Source: gatesfoundation.org