The latest study by the University of Malawi indicates that financial inclusion reduces multiple forms of poverty in women.
Titled the Impact of Financial Inclusion on Multidimensional Poverty among Females in Malawi, the study, conducted by the university’s Economics Department, revealed significant disparities of poverty levels between financially included women and those that are excluded.
Among others, the study, published by associate professor Gowokani Chijere Chirwa and Chimwemwe Misomali, said females who had access to financial inclusion had lower multidimensional poverty levels and were less likely to experience poverty than their counterparts.
Reads part of the study findings: “For instance, out of the 23 862 females analysed where 58 percent were financially included, within the financially included group, 53.3 percent were classified as multidimensionally poor.
“In contrast, 67.2 percent of the non financially included group were identified as multidimensionally poor. This indicates that financial inclusion decreases the likelihood of experiencing multidimensional poverty among females by 5.9 percentage points.”
In an interview, Oxfam Malawi country director Lingalireni Mihowa backed the study, describing access to finances as a key pillar of womens empowerment. She said access to finance enhances womens ability to acquire essential goods and services.
She said: “When women get finances, their spending priorities are around food and nutrition, health care, education needs for children and shelter.
“If we want to tackle poverty, the government should work with the private sector to expand poor people’s access to finances. Financial inclusion is key to bridging inequality and tackling pervasive forms of poverty.”
In a separate interview, Economics Association of Malawi president Bertha Bangara Chikadza said multidimensional poverty is a measure of poverty that goes beyond just income or consumption; hence, describing the research results as profound and enlightening to policy holders.
Chikadza said considering that it goes beyond money poverty, financial inclusion can potentially solve many deprivations among females; hence, a good move towards Sustainable Development Goal number one and number 10 which are reduced poverty and reduced inequality respectively.
Meanwhile, National Association of Business Women executive director Barbara Banda said the study vindicates their belief that the major barrier that lock women in poverty is lack of access to the financial system.
