The Ministry of Gender, Children, and Social Protection has organized a dialogue highlighting the challenges encountered in accessing finance from commercial banks.
Concluding the day-long stakeholders’ dialogue on financial inclusion programs and policies, focusing on enhancing women’s access to financial resources many participants emphasized the burdensome interest rates imposed by commercial banks when acquiring loans.
The dialogue was held on Wednesday, 3 April 2023, at the Ministerial Complex in Congo Town, commemorating International Women’s Day.
Representatives from the commercial banking sector acknowledged the existence of higher interest rates, ranging from 20 to 30 percent.
However, they also highlighted initiatives to enhance women’s capacity and foster economic development opportunities.
However, it became apparent during the dialogue that despite these initiatives, many women are not fully utilizing the basic services provided by banks.
This underutilization exacerbates challenges faced by small businesses, particularly in meeting loan obligations.
In response to concerns raised, stakeholders, including commercial banks, the Central Bank of Liberia, corporate financial institutions, and microfinance institutions, disclosed the existence of separate programs tailored to women to bolster their economic empowerment.
A recurring challenge highlighted during discussions was loan repayment.
Stakeholders emphasized the importance of ensuring smooth repayment processes to mitigate the financial burdens faced by women entrepreneurs.
While discussions underscored the impact of higher interest rates on women borrowers, panelists also acknowledged the difficulties faced by businesswomen in meeting repayment obligations.
In conclusion, the dialogue underscored the necessity of collaborative efforts between stakeholders to effectively address barriers to women’s financial inclusion.
Initiatives aimed at streamlining loan processes, reducing interest rates, and enhancing financial literacy among women were identified as crucial steps towards promoting gender equality and economic empowerment.
The Deputy Minister for Gender, Laura Golakeh, indicated that they are aware that women cannot be empowered when they lack access to finance.
According to her, financial empowerment is critical to women’s empowerment and therefore, when women are empowered, she said they hope that they have the necessary resources to be economically empowered.
She believes that access to resources will enable many women to navigate different markets and increase their earnings, especially for women entrepreneurs.
She indicated that it is important to initiate conversations about how women can be economically empowered to start their businesses, considering the significant gender gaps in market access and competition.
She revealed that women are often hindered by limited access to basic financial services such as drawing and checking accounts and savings accounts.
Women entrepreneurs often rely heavily on self-financing, which means they have to hustle independently to obtain capital compared to their male counterparts.
She emphasized that financial inclusion is crucial in achieving sustainable development goals, particularly those related to gender equality.
The president of the National Rural Women, Kebbeh Monger, emphasized the importance of empowering rural women with agricultural tools and financial support.
She acknowledged the financial needs of rural women but stressed the significance of equipping them with agricultural tools to alleviate daily challenges.
She emphasized that empowerment strategies should be tailored to the unique circumstances of rural areas, where opportunities may be more limited compared to urban settings.
Madam Monger called for each district to have its own agriculture farm to empower rural women before providing them with financial assistance.
She questioned the sustainability of solely providing money to rural women without additional support, highlighting the importance of teaching them how to add value to their farm products.
She emphasized the need for training to ensure empowerment initiatives lead to sustainable livelihoods.
