Young women are central to Africa’s economic future—but too many manage their money without the tools necessary to fully meet their needs. CGAP research in Ghana and Tanzania with young women aged 15–24 delivers a clear message: offering better financial services options is urgently needed and eminently achievable. The evidence points to concrete steps that can turn untapped potential into real economic participation for young women and broader customer bases for financial service providers (FSPs).
What young women want—and what’s in their way
Across Ghana and Tanzania, young women are motivated to save, build small businesses, and protect their families from economic shocks. Yet demand- and supply-side barriers keep them on the margins of the financial system.
Trust and risk perceptions
Financial capability varied widely among the young women we spoke with in Ghana and Tanzania. Young women tend to rely on role models— mothers, aunties, or older friends—for guidance on their financial lives. Information can be overwhelming. Many fear losing money to bank failures or mobile money fraud. Concerns about scams and PIN theft are widespread, limiting digital finance beyond airtime top-ups.
Cost and product fit
Young women perceive banking fees and interest rates as high and terms as inflexible for their irregular incomes. Rigid repayment schedules and fear of repossession make formal credit feel unsafe and unworkable. Most young women would rather save towards their goals than take credit, but both formal and informal savings options come with drawbacks. Informal options are plagued by insecurity, lack privacy, and can risk social conflict, while formal options are often considered distant and costly.
Prerequisite hurdles
IDs are crucial, and access to mobile phones is a strong enabler. In Tanzania, only 21% of young women ages 16–24 have a national ID, and 57% have a mobile phone. Without ID, they cannot have accounts in their own names, forcing reliance on others’ SIMs and wallets. In Ghana, the situation is better (74% have a national ID and 89% mobile phones), but access remains a challenge for the youngest segment of women.
Social norms and confidence
Gender and age norms restrict young women’s career choices and access to opportunities, education, and paid work, which in turn restricts their income and ability to build assets. Expectations that women should marry and depend financially on men persist, with early childbearing intensifying restrictions. Many underestimate their eligibility, self-excluding because they “don’t have enough money” for a bank account or fear asset repossession with loans.
Young women manage money within these constraints, which means outside the formal financial system
Contending with these constraints pushes young women to optimize what they trust and control. Informal savings dominate, such as Susu boxes in Ghana. Mobile money sometimes serves as a “safer pocket” than cash – but can also be perceived as too susceptible to impulsive spending. Formal credit uptake is minimal (5% of young women in Ghana versus 10% of young men). Fear of repossession and stress of rigid repayments steer young women to savings groups and family or supplier credit they can negotiate. Despite relatively high mobile money account ownership in Ghana, use for business payments is low (only 6% of self-employed women receive business payments via mobile). In Tanzania, cash is the norm, with digital payments sporadic and sometimes conducted via accounts in someone else’s name due to widespread lack of formal ID. Insurance uptake is limited outside of the public health scheme. Private insurance uptake is constrained by price, unclear value propositions, and low confidence in product design and delivery.
Opportunities to bring more young women into the financial system
Drawing from the findings of research and prototype testing in Ghana and Tanzania, we distilled three opportunities to meet the financial management needs of young women and potentially turn them into viable, long-term financial services customers.
Broaden young women’s on-ramps to financial inclusion
Our research shows that many young women who access finance benefit from mentoring within families and social networks, yet many lack this guidance. School-based financial education helps, but it is a complex and long-term endeavor. In the near term, FSPs should make product information clear and tailored to young women, ideally embedded in broader financial literacy efforts. They should use trusted, relatable messengers from young women’s own networks—peers, community leaders, and influencers – and partner with civil society organizations to link financial services to livelihood-building. It is critical to streamline national ID access for young women and enable tiered know-your-customer (KYC) requirements so they can open low-risk, entry-level accounts in their own names. SIM registration in women’s names is also pivotal for independent digital use. Funders can back mentor networks, strengthen organizations focused on young women’s livelihoods, and encourage cross-sector initiatives to boost financial capability.
Help young women build assets the way they want to: through savings first
Many young women are wary of credit when they’re just starting out. Make savings the anchor, by developing or adapting savings products tailored to young women’s needs as the core offering. FSPs could design mobile money-based, goal-oriented savings features with soft locks, reminders, and fee-free micro-deposits. Credit should follow only when repayment schedules match income flows and collateral demands are realistic. Funders can support small-balance savings mobilization with targeted, time-bound funding to prove commercial viability and incentivize FSPs to prioritize savings alongside—or ahead of—credit. In the next blog we’ll share how experimentation with providers in Ghana and Tanzania focused on the savings pathway led to promising solutions.
Preserve financial progress with more compelling health and life insurance
Financial implications of health shocks are a top concern for young women, who often bear the burden of care for siblings and children. Many young women we interviewed had their life trajectory changed due to the loss or sickness of a parent – and they want to protect their children from this. We found young women to be open to insurance, but those who had gotten policies often let them lapse due to product shortcomings. Providers should simplify enrollment and renewal to reduce friction as well as offer near-term value, such as conditional rebates, alongside payout promises. In Ghana, tailored benefits—income replacement and education-guarantee payouts—resonated strongly. Bundling premiums with savings can increase perceived value and make insurance seamless. Funders can co-finance research, design, and awareness; strengthen the microinsurance sector through policy support; and collaborate with national schemes to remove participation barriers for young women.
The takeaway is simple: young women are already active money managers. By solving for IDs and trust, aligning products to real cash flows, and working with the social ecosystems women rely on, we can accelerate financial inclusion that translates into agency, income, and resilience. These young women can be important new long-term customers for financial institutions, and a strong test case to refine strategies for outreach to broader low-income segments. Funders supporting young women’s financial inclusion can help to reduce the gender gap when it first appears, which can contribute to larger development outcomes.
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