Free Access | 2024-04-12

How the gender gap in phone ownership limits women’s access to formal financial services in Uganda.

Authors/Editors: Phionah Namuliira (PhD)

Abstract:

This policy brief examines how the gender gap in mobile phone ownership limits women’s access to formal financial services in Uganda. The 2023 Finscope survey reveals that while mobile phone ownership has risen to 72% nationally, a persistent and widening gender gap exists, with 80% of men owning mobile phones compared to only 64% of women. This disparity has far-reaching implications for women’s access to formal financial services. These include limited mobile money access, exclusion from the digital economy, and reduced access to credit and savings opportunities. For example, women are less likely to qualify for mobile-based loans due to limited digital transaction histories, forcing them to rely on informal mechanisms such as Village Savings and Loan Associations (VSLAs), with 50% of women showing a preference for VSLAs, compared to 31% of men. To bridge this gap, the brief proposes actionable policies, including expanding affordable smartphone access, promoting digital literacy, simplifying registration processes, and integrating women-led informal groups into formal banking systems.