Development funding needs to take women's needs and roles into consideration

Development funding needs to take women's needs and roles into consideration

In the ongoing pursuit of gender equality and financial inclusion, the Fourth International Conference on Financing for Development (FfD4) has taken significant strides to expand women's access to finance and promote sustainable development.

Prominent figures in the movement, such as Anita Bhatia, a member of GWL Voices and a former deputy executive director of UN Women, and María Fernanda Espinosa, Executive Director of GWL Voices and Co-Chair of the Debt Relief for a Green and Inclusive Recovery Project, have been at the forefront of these efforts.

One of the promising initiatives at FfD4 was the focus on gender-responsive finance and inclusive banking. The UNEP Finance Initiative hosted sessions highlighting how banks can leverage digital technologies and gender-responsive finance to expand access to financial services for women, improve their financial resilience, and create long-term economic value. This includes creating enabling policies such as open banking, the use of alternative data, and incentives for responsible finance that support scaling inclusive finance solutions with a gender lens.

Another key initiative was the mobilization of private capital aligned with Sustainable Development Goals (SDGs), including gender equality. Initiatives such as blended finance and outcome-based instruments are being scaled to de-risk investments targeting marginalized groups like women entrepreneurs, thus accelerating systemic change and inclusive financial access.

The conference also called for inclusive reforms of global financial systems that work better for low- and middle-income countries. These reforms are critical to creating an enabling environment where women can access finance and benefit from sustainable development.

Despite these promising initiatives, challenges remain. For instance, many international financial institutions, finance ministries, and central banks have never had a woman at the helm. In 2023, only 26 of the International Monetary Fund's 190 members had female finance ministers, a number that rose to 29 in 2024. Similarly, only 23 central banks were led by women in 2023.

Moreover, the total finance gap for women-led micro, small, and medium-sized enterprises is an estimated US$1.7 trillion. Additionally, 740 million women worldwide lack access to a bank account, and economies in Sub-Saharan Africa lose more than 10% of their total GDP annually as a result of girls leaving school early.

To address these issues, initiatives like the Sevilla Platform for Action aim to mobilize partnerships to advance concrete initiatives for gender equality. Another promising initiative, Investing in Care for Equality and Prosperity, aims to expand impact investments in care policies, infrastructure, and services.

Investing in gender equality could increase global GDP by more than 20%, yet only 5% of official development assistance (ODA) goes toward programs with gender equality as the principal objective. At the current rate of progress, it will take 134 years to close the global gender pay gap.

The FfD4 outcome document includes commitments to gender equality and the empowerment of all women and girls. With the combined efforts of conferences like FfD4, organizations like GWL Voices, and dedicated individuals like Anita Bhatia and María Fernanda Espinosa, the path towards a more inclusive and equal world is slowly but surely being paved.

[1] UNEP Finance Initiative, (2023). Gender-responsive finance and inclusive banking. Retrieved from https://www.unepfi.org/resources/gender-responsive-finance-and-inclusive-banking

[2] United Nations, (2023). Fourth International Conference on Financing for Development (FfD4). Retrieved from https://www.un.org/ffd/fourthconference/

[3] World Bank, (2023). Closing the gender gap in internet access and usage. Retrieved from https://www.worldbank.org/en/topic/gender/brief/closing-the-gender-gap-in-internet-access-and-usage

[4] International Labour Organization, (2023). Global gender gap in labour force participation. Retrieved from https://www.ilo.org/global/topics/women-and-men/gender-gap/lang--en/index.htm

1. The Fourth International Conference on Financing for Development (FfD4) emphasizes the importance of gender-responsive finance and inclusive banking in promoting sustainable development and expanding women's access to finance. (FfD4)
2. Notable advocates for women's financial inclusion can be found in prominent figures such as Anita Bhatia and María Fernanda Espinosa who have been active in initiatives like the Sevilla Platform for Action. (Anita Bhatia, María Fernanda Espinosa, Sevilla Platform for Action)
3. Private capital is being mobilized to align with Sustainable Development Goals (SDGs), including gender equality, via initiatives such as blended finance and outcome-based instruments, targeting marginalized groups like women entrepreneurs. (SDGs, blended finance, outcome-based instruments)
4. The conference highlighted challenges like the scarcity of women in leadership roles in international financial institutions, with only a limited number of female finance ministers and central bank leaders. (international financial institutions, finance ministers, central bank leaders)
5. Despite obstacles, investing in gender equality could significantly boost global GDP by more than 20%, yet a small fraction of official development assistance (ODA) is allocated for programs centered on gender equality. (investing in gender equality, global GDP, official development assistance)

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