Gender Gaps in Access and Depth of Digital Finance Services in East Africa
Using World Bank Global Findex 2025 data, this study reveals that persistent gender gaps in digital financial access and usage across East Africa are primarily driven by disparities in socioeconomic and digital endowments rather than unexplained structural barriers, with Kenya showing the narrowest gaps and Ethiopia the widest.
Original paper licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). This is an AI-generated explanation of the paper below. It is not written or endorsed by the authors. For technical accuracy, refer to the original paper. Read full disclaimer
In the bustling markets and quiet villages of East Africa, a quiet revolution is taking place, one that does not require bricks or mortar but relies instead on the glow of a screen. For decades, the path to financial security was paved with physical bank branches, often located far from where people lived, making the simple act of saving or sending money a difficult journey. Today, digital finance has arrived, turning mobile phones into wallets and bank accounts into apps. This shift has brought the power of money to millions who were previously left out, allowing them to pay for goods, receive wages, and save for the future without ever stepping foot in a traditional bank. Yet, as this new system expands, a critical question remains: is it opening doors for everyone, or are some people still being held back? Specifically, researchers are asking whether the women of East Africa are getting the same opportunities as the men, or if the digital divide is simply mirroring the old inequalities of the physical world.
A recent study by Fetene Hunegnaw from Adama Science and Technology University dives deep into this question, examining the landscape of digital finance across four major East African nations: Ethiopia, Kenya, Tanzania, and Uganda. The research does not just look at whether people have a digital account, which is the first step, but also investigates how deeply they use these tools. It distinguishes between simply owning a digital wallet and actually using it to make payments or buy things from merchants. By analyzing data from 3,998 observations, the study paints a clear picture of where the gaps exist and, more importantly, why they exist. The findings reveal that while the technology is spreading rapidly, the benefits are not being shared equally. Women are consistently less likely to own digital accounts and significantly less likely to use them for real-world transactions compared to men.
The numbers tell a story of a persistent divide. Across the region, about 57 percent of women own a digital account, compared to 69 percent of men. This 11.89 percentage point gap means that for every ten men with a digital account, there are only about eight women. The situation is even more pronounced in Ethiopia, where the gap is the widest; there, only 15 percent of women have a digital account, while nearly 31 percent of men do. In contrast, Kenya shows the most progress, with a much smaller gap, though it has not disappeared entirely. The study also looked at mobile money, a specific type of digital service that has been a game-changer in Africa. Here, the pattern repeats: 54 percent of women own a mobile money account, compared to 64 percent of men. The disparity is not just about having the account; it is about what happens after the account is opened. When it comes to actually making a digital payment, 60 percent of women participate, compared to 71 percent of men. The gap widens further when looking at payments to merchants, where women are even less likely to engage in these transactions.
One might assume that these differences are caused by something inherent to gender, perhaps a lack of interest or a specific cultural barrier that prevents women from using technology. However, the researchers used a detailed statistical method to break down the causes of this gap, separating the influence of personal circumstances from the influence of gender itself. The results were revealing. The study found that the vast majority of the gap could be explained by observable differences in the lives of men and women, rather than by gender itself. The primary drivers were access to the internet, levels of education, income, employment status, and whether a person lived in a city or a rural area. When the researchers accounted for these factors, the direct effect of being a woman on digital finance participation largely disappeared. This suggests that women are not excluded because they are women, but because they are less likely to have the tools and resources that make digital finance possible.
The most significant factor identified was internet use. The study showed that having access to the internet is the single strongest predictor of whether someone will use digital financial services. Since women in these regions are less likely to have access to the internet or own a smartphone, they are effectively locked out of the digital financial system before they even begin. Education and employment also played major roles; women with higher levels of education and those who are employed were much more likely to use digital finance. The research indicates that the gap is not a mystery of behavior, but a reflection of a gap in opportunity. Women are missing out on digital finance because they are missing out on the digital and economic resources that men are more likely to possess.
This distinction is crucial for understanding the future of financial inclusion in East Africa. The study finds that the "unexplained" part of the gap, which would represent discrimination or bias in how services are offered, is generally statistically insignificant. This suggests that if women had the same access to the internet, the same level of education, and the same employment opportunities as men, the gap in digital finance usage would likely vanish. The barrier is not the technology itself, but the conditions required to use it.
The implications of these findings are clear and point toward specific areas where action is needed. Simply opening more digital accounts is not enough if the people who hold them cannot afford data or do not know how to use the apps. The study suggests that policies must focus on the root causes: improving internet connectivity for women, providing digital literacy training that goes beyond basic schooling, and supporting women's economic empowerment through employment and income generation. In countries like Kenya, where the access gap is smaller, the focus should shift to ensuring women use these services as intensively as men. In countries like Ethiopia, where the gap is vast, the priority must be on building the basic infrastructure of access and affordability. The path to true equality in the digital age is not just about handing out phones, but about ensuring that women have the same digital and economic endowments as men, allowing them to step fully into the financial world.
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