The African banking system is less developed compared to other major regions globally, with lower financial depth and access. Factors like small national markets, lack of financial literacy, low-income levels, and political instability contribute to this.
A new report from the UN Economic and Social Commission in Western Asia (UNESCWA) published on Thursday said nearly 64 per cent of adults in the 22 countries in the Arab region are still without banking transactions activities.
Compared to other global regions this is a higher number around 24 per cent report lightning red bulb and indicated negative impact likely to meet Sustainable Development Goals (SDGs) by 2030.
South Africa is the best African nation that holds an outstanding role in the African banking industry.
Lead author of the UNESCWA report Mario Jales said “The Arab region cannot afford to treat financial services as a luxury. Without inclusive finance, we cannot hope to lift people out of poverty, support small businesses, or achieve equitable growth.”
The report also reveals that only 29 per cent of women and 21 percent of disabled people have even less access to the banking system. This has impacted negativity on access to loans for small and medium-sized businesses reducing entrepreneurial and other income-producing activities.
In addition to gender disparities, 81 per cent of people in low-income countries of the Arab region do not have access to an account in comparison to 67 per cent in middle-income countries and 23 per cent in the high-income bracket.
It is also portrayed in the report that even an African nation, Egypt could be an exception, Experts say between 2016 and 2024, the number of Egyptians with a bank account tripled, from 17.1 million to over 51 million. Impressively, the number of Egyptian women with an account increased by 260 per cent.
Another Gulf region country Jordan that records the second widest gender gap among the African nations has implemented a Micro-fund for Women to provide loans for income-generating activities serving 133,000 borrowers, especially women.
