In the bustling streets of Addis Ababa, Ethiopia’s capital, banks line the avenues with gleaming glass facades and polished branding. Yet behind these impressive exteriors lies a quieter truth—many Ethiopian women remain sidelined from full financial inclusion, limited not only by economic constraints but by deeply rooted structural and societal barriers.
Ethiopia’s financial sector has grown steadily over the last two decades. With over 30 banks, burgeoning microfinance institutions, and mobile money services expanding their reach, access to finance is no longer limited to a select few. Yet, despite this progress, the gender gap in financial access remains striking. According to the World Bank’s Global Findex 2021, only 35% of Ethiopian women had a bank account, compared to 46% of men—a gap that represents millions of women shut out of formal financial services.
This disparity is more than just numbers. It speaks to a deeper issue of financial exclusion that leaves women with fewer opportunities to save, invest, and grow wealth.
One of the key barriers is tradition. In many parts of Ethiopia, particularly rural regions, societal norms often dictate that men control household finances. Women are expected to prioritize domestic responsibilities over economic independence. Even when women do earn income, they may have limited autonomy over how it is spent or saved.
Additionally, legal and institutional frameworks have not always supported women’s financial empowerment. Until relatively recently, women needed a husband’s or male relative’s consent to obtain a loan or register property in some areas. Though laws have evolved, enforcement remains inconsistent, and awareness among women—especially those in rural areas—is limited.
Ethiopian women are far from lacking in ambition. Many run small businesses, sell goods in informal markets, or engage in cottage industries like weaving and food processing. However, most of these women lack access to credit, formal savings, and insurance services that could help their enterprises grow.
“Accessing loans is incredibly hard,” says Aster Kebede, a mother of three who runs a small injera business in Hawassa. “Banks ask for collateral I don’t have. Microfinance is better, but the interest is high and the amounts are too small.”
The problem lies in the financial sector’s risk-averse attitude toward lending to women, who are often perceived as less creditworthy due to lack of collateral, limited credit history, or low earnings. This not only stifles individual aspirations but hampers broader economic development—studies show that financially empowered women are more likely to reinvest in their families and communities.
Digital financial services have been hailed as a game-changer for women’s financial inclusion. With Ethiopia’s mobile penetration rising rapidly and services like Telebirr gaining traction, there is new potential to close the gap. For many women in remote areas, mobile wallets offer their first encounter with formal financial systems.
But challenges remain. Digital literacy among women is still low, and phone ownership is far from equal. According to the World Bank, only 46% of Ethiopian women owned a mobile phone in 2021, compared to 57% of men. Without targeted interventions, digital financial services could inadvertently widen the gap rather than bridge it.
Change is happening. Women-focused microfinance programs, savings cooperatives, and financial literacy campaigns are gaining ground. Organizations like Enat Bank—Ethiopia’s first women-focused bank—are rewriting the narrative by tailoring financial services to the needs of women.
Yet for these efforts to have lasting impact, the financial sector must shift from a passive to a proactive stance. This means designing products that reflect women’s realities, training staff to understand gender dynamics, and pushing for policy reforms that ensure true equality in access.
Leaving women behind is not just a moral failure—it is an economic one. According to UN Women, closing the gender gap in financial access could boost Ethiopia’s GDP by billions of birr. If Ethiopia is serious about inclusive growth, then the financial sector must open its doors wider, not just in appearance but in practice.
The question isn’t whether Ethiopian women are ready for financial inclusion. It’s whether the system is ready to meet them halfway.