Building stronger businesses through financial literacy

DAR ES SALAAM: FOR women entrepreneurs, starting a business often begins with a dream and limited capital. Turning that dream into a sustainable enterprise, however, requires more than hard work. Access to finance, financial knowledge and opportunities for growth can make a significant difference.

Director and Founder of Accelerate Women, Ms Bernice Fernandes, believes that while many women have bank accounts, some remain unaware of the financial products, investment opportunities and affordable services that could help them strengthen their financial future.

Speaking at a financial empowerment event held at the Dar es Salaam Stock Exchange, Ms Fernandes said financial education enables women to understand their options, compare financial institutions and choose services that suit their needs.

The event, organised by Accelerate Women in collaboration with Absa Bank, brought together more than 100 women to learn about money management, investment and making informed financial decisions.

“Many women have ordinary bank accounts but are not aware of the various products and accounts specifically designed to support women. There are many such products in the market, but the information does not always reach them,” Ms Fernandes said.

She added that access to clear information and opportunities to ask questions could help women become more confident in managing their finances and deciding how best to use their money.

Speaking during a presentation on financial inclusion, Absa Bank Products and Channels Manager, Ms Devroda Kagusa, said financial inclusion should enable small-business owners to access and use services that support their ambitions.

“For women entrepreneurs, however, knowing what is available is only part of the challenge. Securing affordable credit to buy stock, expand operations or employ additional workers can remain difficult, particularly when lenders require collateral or formal business documentation,” she said.

Ms Kagusa highlighted the importance of formalising businesses and understanding the requirements for accessing banking services.

Keeping identification and business documents in order, she explained, can help entrepreneurs meet the requirements for joining the formal financial system and accessing financial products.

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Yet documentation is not the only barrier. The cost of financial services also matters. Bank charges, minimum balance requirements and borrowing costs can discourage small-business owners, especially those operating on limited incomes.

Entrepreneurs need to understand the terms attached to financial products, ask questions about charges and compare available options before committing to a service, she said.

Financial education also helps women understand borrowing, manage their money and make informed investment decisions.

Ms Kagusa noted that some financial institutions offer alternative financing arrangements, although eligibility requirements and conditions differ.

Digital financial services can also widen access, particularly for people who cannot easily reach a bank branch. However, customers need the knowledge and confidence to use these services effectively.

For women seeking to grow their businesses, financial empowerment therefore involves more than opening a bank account.

Understanding available products, weighing costs, meeting requirements and making informed choices can help them identify financial services that fit their circumstances and business goals.