By Michael Atingi-Ego

Speaking hypothetically, Christine Lagarde, the former managing director of the International Monetary Fund, suggested in a speech in Washington D.C in 2015 that the global financial crisis of 2008 might have been different if women had led Lehman Brothers.

Lagarde said: "If Lehman Brothers had been Lehman Sisters, today's economic crisis clearly would look quite different."

Her remark was based on research that showed that women leaders in the financial industry tend to take less risk and be more collaborative than men. For example, a 2007 study by the consulting firm McKinsey (titled "Women Matter: Gender diversity, a corporate performance driver") found that companies with more women on their boards tend to perform better financially and be less risky.

While views may differ, it is widely accepted that women leaders make a positive difference in the financial industry. Indeed, there has been a growing movement to promote gender diversity in the financial sector.

More and more women are being appointed to leadership positions in banks and other financial institutions. However, much progress remains, as women remain underrepresented in the financial industry at the highest levels. We must do more to promote women into leadership positions in all sectors.

Men still outnumber women in the financial industry, particularly in executive positions. In 2019, the Deloitte Centre for Financial Services reported that only six out of 107 financial institutions in the United States had female CEOs. These statistics show that, although women can get a foot in the door, making their way up to leadership levels remains challenging. This prevails despite the evident value women bring to teams.

Why does this happen?

A 2016 Oliver Wyman survey of 850 financial services professionals worldwide, including millennial women in finance, showed that little had changed in the sexist workplace culture over 30 years.

The consulting firm's 2020 report on the same topic notes that, although the number of women in finance is rising, it's not high enough yet. While we may no longer be dealing with blatant antiquated sexism, gender roles and unconscious bias (or implicit bias, i.e., automatic associations and reactions to a person or group, outside conscious awareness, and control) are still very present today.

Women entrepreneurs also still face significant financial barriers for a variety of reasons, including:

▪Lack of access to finance: Women-owned businesses are more likely to be denied loans or offered higher interest rates than male-owned businesses.

▪Social norms: Gender stereotypes and biases can prevent women from being hired for specific jobs, promoted to leadership positions, or inheriting and owning family property.

▪Unequal domestic responsibilities: Women often spend more time on unpaid care work, such as childcare and housework, than men, limiting their ability to participate in the paid workforce or smooth career progression.

▪Gender-based violence: Women are more likely to experience violence at work and in their homes, which can devastate their economic well-being.

The problem is quite clear. So, what is the way forward?

Despite the challenges, there is a growing movement to empower women economically. Governments, businesses, and civil society organisations are working to remove barriers to women's participation in the economy and to create opportunities for women to succeed. Financial institutions are developing new products and services that meet the needs of women entrepreneurs.

Governments are passing laws to promote gender equality in the workplace and support working, parents. Businesses are setting targets for hiring and promoting women and are creating inclusive workplaces where women can thrive. Civil society organisations are working to raise awareness of gender inequality and to promote women's rights.

The inaugural UBA Women Economic Empowerment Forum is a testament to the banking industry's commitment to contribute impactfully to the UN Sustainable Development Goal No. 5 – To achieve gender equality and empower all women and girls. Kudos to the UBA under the leadership of Ms Sarah Arapta, who exemplifies path-breaking, progressive, and profitable female executive leadership in finance as the Chief Executive of Citibank Uganda and Chairperson of UBA.

I also pay homage to the Honourable Minister of Gender Labour and Social Development because she champions gender and women empowerment, central to Uganda's National Development Plan (NDP). The NDP recognises that gender equality and women empowerment are essential for sustainable and inclusive development.

As you may be aware, the NDP identifies the following critical areas for action to promote gender equality and women's empowerment:

▪Economic empowerment: it aims to increase women's access to productive resources, including land, credit and markets, and promote women's entrepreneurship and employment in high-paying sectors.

▪Social empowerment: it aims to improve women's access to education, healthcare, and other social services, as well as reduce gender-based violence and harmful cultural practices.

▪Political empowerment: it aims to increase women's participation in leadership and decision-making at all levels of government and society.

For this growing wave of change to continue, women must have support and opportunities available throughout their careers. Firms need to understand women's challenges and create a system where women can transition to senior leadership.

Also, to break barriers, women must not shrink before the obstacles they face but rather find the courage to step out of the box society has tried to put them in.

However, women cannot be the only ones who push against the barrier. Everyone - men and women alike - needs to pull their weight to cause a cultural shift. For us men, it starts with examining our unconscious biases and listening to and championing our sisters, partners, and mothers more.

 On our part, the Bank of Uganda (BoU) is approaching women's economic empowerment in various ways. In response to the evolving operating environment, our mission - To Promote Price Stability and a Sound Financial System in Support of

Socioeconomic Transformation in Uganda- now extends beyond securing macroeconomic stability to prioritise the impact of our work and work methods on lives and livelihoods. Subject to ensuring price stability, strengthening the financial system, and promoting financial market development, the BoU is working to integrate environmental, social, and governance (ESG) sustainability in the financial sector.

Indeed, we are collaborating with Sarah and the UBA in this noble initiative we begin today. This initiative directly speaks to the "S" and "G" because it advocates the financial sector's relationships with its employees, customers, suppliers, and the communities in which it operates, as well as how it is managed and controlled, with specific reference to the place, position, and priority of women.

The BoU is also pursuing sustainability certification by the European Organisation for Sustainable Development (EOSD) to strengthen our environmentally and socially responsible decision-making across our organisation, operations, and policies.

The BoU's sustainability agenda will prioritise diversity and inclusion, including issues such as gender diversity, racial diversity, and disability inclusion, as well as employee relations, including issues such as employee satisfaction, employee engagement, and compensation and benefits. We could not pull this off without women's empowerment in the BoU and across the supervised financial institutions. We are unleashing the power of financial inclusion in underserved areas. New regulations, i.e., the FIA (Agent Banking - Amendment) Regulations, 2023, are breaking down barriers and opening doors for expanded banking agent networks. Also, the recent amendment of the MDI Act in May 2023 has further boosted this effort by allowing Microfinance Deposit Institutions (MDIs) to join the agent banking revolution. By targeting those at the bottom of the economic pyramid (disproportionately women), the BoU is extending the reach of financial services to those who most need it.

The BoU also conducts quarterly awareness campaigns on financial literacy and digital financial literacy to enhance the knowledge, skills, and confidence of Ugandans in making informed financial decisions and confidence in the usage of digital financial services. Surveys, such as by FSD Uganda, have shown gaps in women's financial and digital literacy, which we are working together to plug. The BoU is working with stakeholders to roll out the second National Financial Inclusion Strategy (NFIS) that envisions "the universal access and usage of a broad range of quality and affordable formal financial products and services delivered in a responsible and sustainable manner." The NFIS has prioritised the promotion of gender-inclusive finance in the top five objectives.

The BoU also promotes development financing by administering the Government's Agricultural Credit Facility (ACF) and Small Business Recovery Fund (SBRF), delivered through participating financial institutions. As you know, the ACF provides affordable medium-to-long-term loans to projects engaged in agricultural value addition, such as agro-processing and commercialisation.

We introduced the block allocation innovation under the ACF in 2018 to facilitate loans to borrowers with non-traditional collateral, such as the borrowers' character and movable property, thereby serving women, youths and those who lack land titles or inherited property.

The BoU fosters an enabling environment for the banking and financial sector to advance women's economic empowerment. We promote the use of technology to reach women in underserved areas and support the development of innovative financial products and services for women.

We applaud and commend the financial institutions that are reducing the gender gaps by enabling women to start and grow businesses, increasing women's participation and advancement in the labour force, improving women's access to education and healthcare, and reducing women's vulnerability to poverty and shocks.

It is evident that despite the challenges, now is an excellent time for women to plunge into finance careers. Today, women are creating their own companies, launching new

initiatives, breaking the bias and fighting unapologetically for what they deserve— breaking the proverbial glass ceiling in finance and beyond.

Empowering women economically is not just good for women; it's great for everyone.

When women are economically empowered, they are more likely to invest in their children's education and health and start and grow their businesses, which leads to better outcomes for the whole family and boosts economic growth. So, what can you do to help empower women economically?

Support women-owned businesses.

Advocate for policies that promote gender equality in the workplace and society.

Challenge gender stereotypes and biases.

Encourage girls and women to pursue their dreams and to reach their full potential.

Together, we can create a world where all women have the opportunity to reach their full economic potential.

The writer is the Deputy Governor, Bank of Uganda