A recent survey focusing on gender-inclusive finance has brought to light the substantial challenges women in Fiji, particularly those aged 15-35, encounter when accessing financial services and entrepreneurship support. Conducted by the Reserve Bank of Fiji, the report reveals that women within this age demographic are markedly less likely to have bank accounts and access to capital compared to their male counterparts. Despite owning businesses with similar turnover and loan documentation, women-led ventures face more obstacles than those run by men.
One significant finding from the report is that loans awarded to women-owned businesses are generally smaller than those given to men-owned enterprises of similar scale. This gender finance gap persists despite governmental efforts to address the issue, primarily because awareness about gender-inclusive finance remains limited, hindering effective engagement and implementation.
A critical hindrance identified is the insufficient data on women-owned businesses in terms of turnover and economic contributions. This lack of understanding by financial institutions results in a systemic undervaluation of women’s specific financial needs. Although women have a similar number of savings and deposit accounts as men, the average balances are notably lower, with women having 25% less in savings and 43% less in term deposits compared to men. Additionally, loan amounts for women are markedly lower, with the average loan being 64% smaller than for men.
Women represent the majority ownership in 30% of registered Micro, Small, and Medium Enterprises (MSMEs) in Fiji; yet, a considerable number remain financially underserved. Many women in informal employment have restricted access to social benefits. The report highlights that even when women receive loans, the amounts are smaller, indicating they are significantly underserved.
Loan rejections for women frequently cite issues such as lack of collateral and inadequate documentation. However, another key reason is a perceived limited capacity to manage businesses, an excuse less frequently applied to men, indicating a deep-seated bias that requires urgent attention.
This situation has drawn attention from multiple stakeholders and aligns with findings from earlier studies that emphasize the need for gender-inclusive financial strategies. Programs like the Women Entrepreneurs Finance Initiative (WE-Fi) play a crucial role in encouraging women’s financial participation. Nonetheless, the ongoing challenges underscore the need for widespread policy engagement and innovative solutions to achieve true financial equality and harness women’s potential in driving economic growth. Financial empowerment for women remains a promising avenue towards a more inclusive and prosperous society in Fiji.