The year is 2019. Amina, not her real name, is a businesswoman located in the Bolgatanga Central Market, dealing in petty sweets and confectionery. She has been running this business for years.
Amina’s business operates entirely on cash. She does not accept mobile money. This means that all Amina’s clients and prospective customers who do not have cash cannot buy her sweets or confectionery.
Amina’s decision not to accept mobile money is not by choice. She cannot because she does not have a mobile phone and, as a result, cannot register for a mobile money account. The meager earnings from her petty business do not provide the financial flexibility needed to purchase a mobile phone.
This situation, however, was set to change when Amina’s husband bought her a new phone and a SIM card. She quickly registered for a mobile money account. This allowed her to receive and transact business using the mobile wallet with her clients, opening up new opportunities for her business.
But the improvement was short-lived. Amina’s husband took the phone away from her.
Without her phone, Amina could no longer access her mobile money account. The savings she had accumulated in her mobile wallet became unreachable. Payments from her clients were disrupted, and her ability to save for her business’s future came to an abrupt halt. For as long as her husband kept the phone, Amina’s financial lifeline remained severed.
For many women like Amina, financial independence is precariously tied to mobile devices they don’t fully control. The phone that connects them to their mobile money accounts, suppliers, and clients often belongs to a partner or family member who holds authority over its use.
Take the case of Gloria, not her real name, an apprentice hairdresser in the Bolgatanga Municipality. After breaking up with her boyfriend, he immediately reclaimed the phone he had bought for her during their relationship. As an unpaid apprentice struggling to meet her daily expenses, Gloria had no means to replace the phone. Without it, she was unable to access a mobile wallet, cutting her off from the opportunity to save or manage her finances independently.
WHAT THE DATA SAYS
Financial inclusion is a cornerstone of sustainable development, providing individuals and communities access to essential financial services that can transform their livelihoods. Despite global progress in expanding financial services, a persistent gender gap continues to affect women from vulnerable groups, limiting their economic empowerment. The World Economic Forum’s 2022 Global Gender Gap Report estimates that achieving global gender equality will take an average of 132 years—a stark reminder of the challenge ahead.
In Ghana, strides have been made to improve financial inclusion. According to the Global Findex Database 2021, 63 percent of women in the country now have formal financial accounts, a significant step forward. However, the gender gap has widened in the past five years, growing from 8 percent to 11 percent.
Research such as the paper, The Role Regulators Play in Closing Financial Inclusion Gender Gap: A Case Study of Ghana, highlights the complex interplay of economic and social factors at play. In 2016, approximately 30 percent of Ghanaians lived below the poverty line of USD 3.20 per day (purchasing power parity). Ghana, despite being ranked as the 10th largest economy in Africa, with a GDP of USD 73.9 billion and consistent economic growth of 0.4 percent during the pandemic, still faces deep financial disparities.
Over the last decade, financial regulators in Ghana have made significant investments in digital financial services and mobile banking. These initiatives have driven improvements in overall financial inclusion. Yet, the benefits have not been equally distributed, as evidenced by the doubling of the gender gap in financial inclusion from 6 percent to 11 percent during this period.
While Ghanaian women show enthusiasm for adopting digital financial services, they remain marginalized.
A CARD SOLUTION TO THE PROBLEM
Not everyone can afford a mobile phone, but a card issued for free could be the answer to their problems.
Here’s where the e-zwich comes in. Launched in 2008, e-zwich is the brainchild of the Ghana Interbank Payment and Settlement Systems (GHIPSS). Established by the Bank of Ghana, GHIPSS is a pioneering initiative to modernize the country’s payment systems and foster financial inclusion.
Since its inception, GHIPSS has worked to provide accessible, secure, and efficient payment solutions that connect financial institutions, businesses, and individuals across Ghana. By bridging the gap between traditional banking and digital financial services, GHIPSS has become a cornerstone of Ghana’s digital public infrastructure, empowering citizens and businesses alike.
One of the key offerings under GHIPSS is the e-zwich Biometric Smart Card, a groundbreaking service that addresses critical barriers to financial inclusion, particularly for underserved and marginalized populations, including women. The e-zwich card is a secure, interoperable biometric payment system that connects all financial institutions in Ghana. It enables users to perform a wide range of transactions, such as cash deposits, withdrawals, transfers, and payments for goods and services, at various outlets and retail points across the country.
The e-zwich system’s offline transaction capabilities are particularly significant for individuals in remote areas with limited or no connectivity. This feature ensures that financial services remain accessible regardless of location, providing a lifeline for women in rural communities who may otherwise struggle to participate in the formal financial system. Additionally, the e-zwich-to-mobile functionality bridges the divide between traditional banking and mobile money services, allowing users to seamlessly transfer funds between their e-zwich accounts and mobile wallets.
The integration of technologies like e-zwich into Ghana’s financial landscape exemplifies GHIPSS’s mission to promote financial inclusion. By providing innovative and accessible payment solutions, GHIPSS is not only driving the adoption of digital financial services but also helping to close the gender gap in financial account ownership. Through initiatives like e-zwich, more women can access secure financial services, save for their futures, and build resilient livelihoods, contributing to the broader goal of sustainable economic development.
GHIPSS continues to play a pivotal role in shaping Ghana’s financial ecosystem, fostering an environment where technology and inclusion converge to empower individuals and communities alike.
CHALLENGES OF THE E-ZWICH
While the e-zwich Biometric Smart Card offers promising solutions for financial inclusion, it is not without challenges. During a recent engagement with journalists, it was explained that e-zwich’s status as a not-for-profit product makes it difficult for many banks to fully embrace and actively promote it. This limitation hinders the widespread adoption necessary to achieve its full potential.
Another issue stems from its centralized management under the Bank of Ghana. While this ensures oversight and security, it has also positioned e-zwich as a niche product rather than a mainstream financial tool. These challenges underscore the need for innovative strategies and collaborative efforts to enhance its appeal and integration within Ghana’s broader financial ecosystem.
STRENGTHENING THE DFS TO DEAL WITH CHALLENGE
The introduction of card systems like the e-zwich Biometric Smart Card has been a significant step forward in addressing financial inclusion in Ghana, particularly for underserved populations. However, challenges persist that may hinder the adoption and full utilization of such systems. One key issue is the limited awareness and understanding of digital financial tools among rural and low-income populations, especially women. As the Digital Financial Services Policy notes, “engaging local communities to grasp women’s wants and needs for DFS” is critical to bridging these gaps. Additionally, infrastructural challenges, such as inconsistent connectivity in remote areas, can further limit the effectiveness of card-based systems, despite the e-zwich’s offline functionality.
To overcome these barriers, the DFS Policy proposes targeted interventions to strengthen the financial ecosystem. A central focus is on enhancing market infrastructure by integrating biometric ID systems with payment platforms to ensure seamless access to financial services for all citizens. Furthermore, the DFS Policy stresses the importance of capacity building among regulators and service providers to monitor and support the growing digital financial space, particularly in addressing issues of competition and data protection.
These strategies resonate with the challenges faced by women like Amina, whose story highlights the precarious nature of financial independence tied to mobile phones they don’t fully control. By prioritizing inclusive technologies like e-zwich, which offers secure and flexible access to financial services, the DFS Policy envisions a future where women no longer lose their financial lifelines due to external factors.
Addressing gender-specific barriers through community engagement, tailored solutions, and robust digital infrastructure not only empowers women but also ensures that all Ghanaians can participate meaningfully in the digital economy.
“This report is produced under the DPI Africa Journalism Fellowship Programme of the Media Foundation for West Africa and Co-Develop.”
Source: A1 Radio Online | 101.1 MHz | Mark Kwasi Ahumah Smith| Bolgatanga
