The recently published Gender Finance Inclusion Report by the Reserve Bank of Fiji (RBF) uncovers substantial inequalities in access to loans between men and women in the country. The findings reveal that only 9% of Fijians have secured loans from formal financial institutions, with women facing even greater obstacles; just 6% of young women and 6.6% of adult women hold loan accounts, in contrast to 8.3% of young men and 11.6% of adult men.
This report underscores pronounced biases in lending practices, with men comprising 51% of total retail loans from commercial banks and 48.5% from credit institutions. In stark comparison, women receive only 26.7% of retail loans from commercial banks and 29.5% from credit institutions. Notably, the average loan amount granted to women is significantly lower—around $11,500—compared to $19,000 for men, reflecting a striking 40% disadvantage.
The issue extends across various age groups, as the gender credit gap also impacts individuals between the ages of 15 and 35. Women-owned micro, small, and medium enterprises (MSMEs) remain largely underserved, facing challenges in accessing capital despite performing on par with their male counterparts. Contributing factors include strict lending criteria and a lack of financial education.
In response to these disparities, efforts are underway to highlight and rectify gender-related financial inequalities. Initiatives like the Women Entrepreneurs Finance Initiative (WE-Fi) Code are being implemented to raise awareness of women’s financial needs and to foster a more inclusive environment within the financial sector. Recent advocacy has also led to an increase in women’s ownership of bank accounts, although access to loans still lags.
With these findings in mind, the RBF and various financial institutions are urged to implement more gender-inclusive strategies to better support women economically. This report not only pinpoints critical gaps but also serves as a vital call to action for concerted efforts to close the gender finance gap in Fiji.
Highlighting the potential for change, there is an opportunity for Fiji to promote economic equality by improving access to financial resources and prioritizing women-led businesses. Such advancements could lead to broader societal benefits and empower women to make greater contributions to the economy. With ongoing advocacy and strategic partnerships, there is genuine optimism for achieving a more equitable financial landscape in Fiji, fostering lasting economic empowerment for all.