Author: Tihitina Girma, Gender Program Associate, UNDP/RSCA

Women’s economic empowerment refers to women's ability to participate in markets, control productive resources and access decent work — as well as their autonomy over their time, bodies and lives. It also includes an increased voice for women, and meaningful involvement in economic decisions at all levels — from households to international institutions.

Although almost 50% of the world's population is female, women continue to face a significantly uneven economic playing field. Astonishingly, 40% of the global female population still lacks access to formal financial services. Women are 20% less likely than men to have bank accounts, and 17% less likely to secure formal loans. Some 1.1 billion women are excluded from formal financial systems, which impacts economic growth. 

Global data also reveals that over 2.7 billion women confront legal barriers that constrain their job choices. Women aged 25 to 54 exhibit a labour force participation rate of 63%, significantly trailing behind men's 94%. On average, women’s income is only 77% of what men earn. This wage gap is further exacerbated by women’s disproportionate contribution to unpaid care and domestic work.

Several global instruments are in place to promote and advocate for women’s economic empowerment. These include the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW), the Beijing Declaration and Platform for Action, and Sustainable Development Goal (SDG) 5. Additional support comes from the International Labour Organization (ILO) Conventions, United Nations Guiding Principles, and the African Union’s (AU’s) Agenda 2023. 

Women's economic empowerment is also a central focus within UNDP's Six Signature Solutions. The UNDP’s Gender Equality Strategy 2022–2025 further identifies finance, digitization and innovation as pivotal facilitators of gender parity.

Women are consistently underserved in accessing financial products and services. Traditional gender roles often confine women to unpaid care and informal labour sectors. In addition, deep-seated cultural norms may also reinforce gender stereotypes and constrain women's economic agency. 

To foster women's economic empowerment, strategies should involve confirming equal rights and opportunities, cultivating work-life balance, boosting access to assets and challenging societal norms. The UN Economic and Social Council advocates for comprehensive strategies aligned with SDGs. This includes eradicating discriminatory laws and promoting equitable distribution of resources through gender-responsive budgeting. 

The UN Capital Development Fund outlines a roadmap for equitable economies, where every woman achieves parity in access, agency and leadership. While this entails aspects like supporting women-owned enterprises, it also involves developing inclusive infrastructure and deploying public finance for gender equity. 

The economic empowerment of women, as a central pillar of the UNDP's Gender Equality Global Program, holds immense potential for building inclusive economies and societal transformation. Prioritizing women's economic empowerment not only fosters progress toward gender equality, but also acts as a catalyst for holistic development. 

Financial and digital inclusion are key. By providing access to banking, credit, insurance and savings, and enhancing digital literacy, women's economic participation can be substantially improved. Innovations such as mobile banking and fintech solutions play a pivotal role in bridging the financial gender gap. Encouraging women's entrepreneurship further amplifies the impact of financial inclusion efforts.

A good example is UNDP’s online entrepreneurship and financial literacy training programme, implemented along with the United Nations Institute for Training and Research (UNITAR). In 2021, UNDP and UNITAR jointly undertook a training needs assessment, interviewing over seven hundred women entrepreneurs across Africa. The purpose was to understand the gender-specific obstacles women encounter in doing business and to identify the learning needs, priorities and preferences of women at various business stages. A tailored training programme was developed to strengthen women entrepreneurs' financial decision-making capacity. Particularly, it focused on improving women’s access to finance through increased financial literacy and promoting the development of a local network of women entrepreneurs. The programme was also designed to equip women with skills to create scalable businesses, analyze markets and risks, and develop competitive strategies.

As a result, a highly successful online training programme was offered in two cohorts to 4,929 women entrepreneurs across sub-Saharan Africa. The bulk of the participants were from the agricultural sector, fashion and beauty industry, and community-based organizations. After completing the training, participants indicated that they were able to improve in financial management, networking, and access to finance. 

The significant number of applications received for the programme (5,000 in one month) points to a pressing need for financial literacy and entrepreneurship training. This underscores the urgency and importance of economically empowering women entrepreneurs across Africa.

Women’s economic empowerment is about more than transcending gender boundaries. When women enjoy full economic equality, it not only elevates individual well-being but also drives family welfare and economic growth. Any developmental initiative that overlooks women's economic empowerment risks falling short of expected outcomes. Prioritizing women's economic empowerment should therefore be recognized for being a critical catalyst to expedite the achievement of SDGs.