Financial exclusion disproportionately affects rural areas and women in Angola, says minister

The Finance Minister of Angola has highlighted the challenges faced in achieving financial inclusion, especially in rural areas and for women.

A survey revealed high levels of exclusion in these categories, indicating the need for further action.

At a conference organized by the National Bank of Angola (BNA), Minister Vera Daves de Sousa stressed the importance of collective efforts to address the issue.

While urban areas have made progress in financial inclusion, rural areas and women face serious challenges that require the involvement of various financial institutions.

The FinScope Consumer Angola 2022 Survey, conducted by FinMark Trust, revealed the country’s financial inclusion state.

Urban areas had a higher inclusion rate (48%), while women (60%) and individuals dependent on agriculture, self-employment, and odd jobs experienced higher levels of exclusion.

The government plays a crucial role in improving financial inclusion through its programs.

Minister Daves emphasized the need for coordinated efforts to address the challenges faced by excluded groups.

According to the survey, financial inclusion rates are particularly low outside of the capital city, Luanda, making Angola the country with the lowest inclusion rate among Southern African Development Community (SADC) countries.

The survey also highlighted limited depth of financial inclusion, with most financially included individuals using only one financial product.

This suggests a lack of tailored offerings to meet diverse needs.

Digital financial services, such as mobile payments, are crucial for promoting inclusion. However, the survey found low penetration of mobile payments, with only 6% of respondents having registered accounts, despite 72% having access to a cell phone.

Savings and investments are low, with 75% of respondents not saving at all.

Those who do save often rely on informal mechanisms, such as keeping money at home. Credit consumption is also low, with a preference for loans from family and friends.

The survey recommends the development of a National Financial Education Strategy by the public sector, focusing on digital skills, to complement inclusion policies.

The BNA is encouraged to prioritize consumer financial education through programs on financial and digital literacy.

The survey aimed to assess financial inclusion levels, access to formal and informal financial products, and the barriers and facilitators influencing financial service usage.

It also aimed to identify trends to inform future initiatives.

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