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Banking on Women in Egypt

Empowering women entrepreneurs is good for development and business. Tune in to World Bank Live on October 11, 2012 10:30 a.m JST. to hear Liberia President Ellen Johnson-Sirleaf and World Bank Group President Jim Kim talk #womenbiz at this year's Annual Meetings.

Research has shown that gender equality makes good business sense, and is key to promoting economic growth. But women continue to be excluded from the economic sphere. This is certainly the case in Egypt, which could use an economic boost in a time of transition—especially as millions of famAccess to finance is changing lives of Egyptian women, and their families for the better. (Credit: World Bank)ilies that rely on the slumping tourism industry are having trouble making ends meet.
Indeed, our research has found that would-be Egyptian women entrepreneurs face many obstacles.  For one, being approved for financing can be a challenge for Egyptian women entrepreneurs. Businesswomen in Egypt are also disadvantaged when it comes to the cost of finance. Banks have stricter collateral requirements for loans to women entrepreneurs, which are perceived as higher-risk. Providing collateral is also an obstacle for many women who are under the guardianship of male relatives and unable to independently manage their assets.

An analogy about cars, trust and financial capability

Siegfried Zottel's picture

Imagine you need a car to commute long distances to your workplace or the closest supermarket, to visit your parents and to bring your child to school. Therefore, you want to spend the money you have been able to put aside on a large purchase: a new and reliable car.  However, you do nFinancial education enables the unbanked to participate in financial markets.  (Credit: The Advocacy Project, Flickr Creative Commons)ot know how to drive, nor how do you have even a basic understanding of any technical aspects of a car, not to mention any knowledge about how to maintain a car.
Also, imagine that everything you have heard so far about car dealers from your family, friends and neighbors is that they have a very bad attitude, do not act in your best interest and try to sell you overpriced vehicles with hidden fees and features you do not need. Given your lack of knowledge of how to choose and use a car and your lack of trust, would you still feel confident about approaching a car dealer? Most probably not.

This analogy also applies to one’s participation in financial markets. Especially in developing economies, where most globally unbanked people live. If you do not have knowledge of features and risks associated with financial products, do not know how to choose and use these products, lack any basic understanding of inflation, interest rates and compound interest, it is unlikely that you will participate in financial markets, or that you will benefit from them if you do. A lack of trust in financial service providers will do the same.

Weekly Wire: the Global Forum

Kalliope Kokolis's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Mobile Media Toolkit
A Profound Media Shift in the Arab World

“A report from the Center for International Media Assistance analyzes the growth of digital media in the Arab region.

A new report from the Center for International Media Assistance (CIMA) highlights a profound media shift happening in the Arab world. Amidst continued repression and threats to free expression, both online and offline, this year saw tens of millions of individuals and news outlets using social and digital media tools to capture and share events. The full report is available here: Digital Media in the Arab World One Year After the Revolutions.”   READ MORE


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