Book Chapter
Gender disparities in financial inclusion in Tanzania

Although Tanzania has made notable progress in expanding  access to financial services, the gender gap in financial inclusion still remains. This paper examines gender disparities in financial inclusion in Tanzania using exploratory and regression analyses. While the advent of mobile phone money services has led to increased financial inclusion, women still lag behind in access to and utilization of formal financial services. 

Based on FinScope Tanzania survey data for 2017, the empirical results show that women—especially married women—are less likely to access mobile money services and banking services compared with men. Similarly, women are less likely to save and borrow compared with men, with a higher percentage opting to keep cash at home or save with a saving group. The gender gaps in financial inclusion are attributable to factors such as lack of income, limited financial literacy, and lack of access to smartphones. 

As the economy continues to embrace a digital economy in light of challenges posed by COVID-19 pandemic, there is need for inclusive and gender-sensitive policies so as to enhance economic resilience and effective participation of women. These include enhancing digital financial services across board, improving women’s education and financial literacy, and promoting saving groups.