May 29, 2024

Why financial literacy is critical towards the empowerment of women and youths

Why financial literacy is critical towards the empowerment of women and youths

Editorial

The empowerment of Africa’s female and young population is the key element to the attainment of multiple sustainable development goals, including but not limited to zero poverty, zero hunger, gender parity, adequate employment, economic expansion, and reduced disparities. Ecobank Foundation and UN Women have collaborated to enhance their individual goals of advancing women’s empowerment in Africa.

Ecobank has a strong commitment to community service that is deeply ingrained within the organization’s culture and values. For a span of nine years, the Ecobank Foundation has organized ‘Ecobank Day’, an annual event that involves Ecobank employees engaging in community service to promote the welfare of their respective communities.

The recent Ecobank Day, held on November 12th, highlighted the importance of promoting financial literacy and inclusion to combat poverty and support the advancement of women and youth, particularly in disadvantaged areas. The theme for the day was “Leave no one behind: Financial Inclusion for all.

In this year’s Ecobank Day, a strong emphasis has been placed on addressing the unique needs and obstacles that women and female entrepreneurs encounter in both urban and rural settings, thanks to the collaboration with UN Women.

The Ecobank Foundation and UN Women will collaborate in initiating a range of awareness-raising, advocacy, and action projects aimed at addressing violence against women and girls in multiple African countries, aligned with the start of the 16 Days of Activism Against Gender-Based Violence campaign that begins on November 25th.

The process of providing individuals or communities with the tools and resources necessary to achieve financial stability and independence.

Economic empowerment enables young people and women to shift from a position of limited power, voice, and choice within their households and the economy to acquiring the necessary skills, resources, and opportunities to participate fairly in market competition.

The growth of economies is positively impacted by an increase in the participation of women in the workforce. The economic empowerment of women has various beneficial impacts on development such as heightened productivity, greater economic variety, and income equality, among others.

If women’s contribution to the economy was equivalent to men’s, it could increase annual African GDP by $8 trillion, which is 26% more than the current state.

By providing education, training, and adequate job opportunities to all young people, including those who are marginalized and disadvantaged, the economies of Africa can benefit greatly, especially since over 60% of the population is under the age of 25. The emergence of the Fourth Industrial Revolution and digital economy provides unparalleled opportunities for development in Africa, making this statement particularly significant for the continent.

The advancement of microfinance and innovative financial solutions designed for women and young people has partially enhanced financial accessibility for numerous individuals throughout the continent. This has enabled them to initiate or enhance their business ventures. This is fantastic news. However, what measures can be taken to guarantee the longevity of these economic benefits. As South African actress Pearl Thusi expressed in the 2022 documentary “I’ve Been Trying,” we must approach this with thought and care. To enable young individuals to engage effectively in business, imparting financial literacy is crucial as evidenced by eight years of joblessness.

Financial literacy encompasses the proficiency in comprehending and proficiently employing a range of monetary competencies like managing individual and commercial finances, devising a budget, and making apt investments. Having the skills to comprehend the functioning of finances. The skill to adeptly make choices regarding finances.

Having knowledge of finance is imperative.

It is imperative for women to acquire financial aptitude that will enable them to invest in the welfare of their children and household, taking into account their inherent inclination towards this responsibility. Having a strong understanding of financial matters is crucial in diminishing poverty and enhancing economic well-being.

Being financially literate enables us to enhance our readiness and withstand future crises more effectively.

Discover innovative means of disseminating financial literacy to women and youth, and make it more accessible and comprehensive while also eliminating the negative perception associated with talking about personal finances. Just as individuals are educated on reading, writing, and arithmetic, they should also be taught the skill of budgeting and saving money.

We firmly believe that financial literacy should serve as the foundation for financial inclusion initiatives, and that’s why. Enabling women and young individuals belonging to disadvantaged communities can lead to their financial empowerment, supporting them in making wise decisions that can bring a positive impact on their own lives and the lives of their family, eventually.

By implementing financial inclusion, every individual is included without any exception.