The National Bank of Ethiopia (NBE) recently shared a photograph of the Governor’s meeting with board chairs and chief executive officers of commercial banks. The meeting was held to outline priorities for the central bank’s three-year strategic plan. The snapshot shared on its Twitter page presents the banking industry’s higher echelons. The photograph paints a clear picture where two women in a sea of dark suits sit, perhaps coincidentally, both dressed in purple.

The meeting, chaired by the Governor, is an apt depiction of the modus operandi of the financial sector and, subsequently, the economy. In this realm, gender inequality appears as a footnote and a prevailing order.

For all the close observers of Ethiopia’s financial sector, and anywhere else in the world, the gender gap in leadership is quickly recognised as a challenge symbolic of broader issues. The pervasive lack of female leadership in the financial sector manifests systemic problems that resonate with profound implications, extending far beyond the boardrooms and into the fabric of society as it has been reflected upon ad-nauseam. Financial inclusion and lack of representation in leadership within the financial sector continue to be critical challenge that stands in the way of gender equality.

While it may not be feasible to analyse in-depth the absence of women’s leadership globally in a magazine column, it may be the opportune time to look at the financial sector in Ethiopia and its broader implications. Any proponent of women’s empowerment would habitually count the number of women in the room to gauge the level of effort towards representation in any forum. Representation matters, especially where gender equality and women’s economic empowerment are the goal.

A society that permits the representation of only half of its population in leadership and decision-making roles cannot claim to be healthy or fair. However, it is also essential to take a step back from being reactive to just one photograph of one meeting in one sector and look deeper at the issue.

It is essential to probe why so few women are broadly climbing the leadership ladder in the banking and financial sectors. Taking the query one step further, it is essential to assess the broader repercussions of this status quo to society overall and women and girls in particular. It is vital right now, more than ever, for women to pay close attention to the development in the financial sector as well as the economic reform agenda more broadly. The fourth industrial revolution has arrived, and it is a charging train that threatens to leave women behind. This is not just limited to the traditionally male-dominated space that is the realm of finance.

Not just the lack of women’s leadership in commercial banks and other financial institutions poses a risk. It is crucial to look beyond the immediate impact of having a diverse leadership and probe into the broader ecosystem repercussions of women’s inclusion in the financial sector.

How does the lack of women in leadership within financial institutions affect, say, product designs, marketing, and service delivery for women?

Representation matters, but it is not all there is to it. The prevailing status quo at the topmost echelons of financial leadership poses a wider risk for women in economic policymaking, where there is a lack of effective harmonisation in the design and implementation of policy frameworks that promote inclusivity and women’s economic empowerment.

Harmonisation, collaboration, and joint action for meaningful change for gender equality and women’s economic empowerment starts here and now. Women are less likely than men to have a bank account in their name because they still face obstacles to being financially included. In 2022, the gender gap in Ethiopia for financial account ownership has increased from two percent in 2014 to 17pc (FINDEX 2022). According to a recently released report from FINDEX, affordability, accessibility, lack of documentation, and low levels of skills and capability act as barriers to women’s financial inclusion. Women must not be left behind as the country works to transition to a new digital economy, opening its doors and, importantly, its economy to the world. Ethiopian women should hop on the train today and hang on for dear life.

In work around financial inclusions, a blanket term ‘social norms’ describes the intangible and unquantifiable reality of gender inequality that limits women’s access to and productive use of resources and decision-making. In many corners, it is considered an insurmountable barrier that limits promoting women’s inclusion, but there is so much that can be done.

Kate Raworth, the author of “Doughnut Economics”, muses in her book that Adam Smith’s model of the rational man so obviously excluded women’s points of view because Smith was oblivious to the invisible hand serving his dinner. The age of orthodoxy in the financial and economic sectors is no more. Thankfully, advances in economic thought, finance, management, and beyond have progressed to adapt gender considerations in their frameworks.

Cultivating young women and girls in finance starts in mathematics classrooms, universities and entry, and entry-level jobs. There are spaces where individual bias on the side of teachers and supervisors discourages young women and girls from pursuing careers in Science, Technology, Engineering, and Math (STEM). It is vital to become intentional about cultivating future women leaders in the financial sector and beyond through mentorship and coaching. It is also essential to reflect on enabling environments in the workplace that would encourage young women professionals to engage in the workforce while elevating their burdens of a second and third shift in the home and community.

While it is obviously the right thing to include women in the workplace, promote a healthy work-life balance in organisations and promote parity in leadership development, it is not all a matter of altruism. There is a documented diversity dividend for organisations that have gender parity in their leadership that unequivocally demonstrates that elevating women to decision-making positions has payback in tangible financial terms for organisations as well as for the broader economy.

Suffice it to say that whatever the motivations for incorporating inclusive policies and practices, it is evident that the results are fruitful for all.

It is important for women leaders and allies working towards gender equality and women’s economic empowerment in Ethiopia to take note that now is the time to pay attention to these nuances. It is not just gender norms that act as barriers to women’s empowerment generally; it is a combined plethora of legal, social, and economic barriers.

The implementation period of the second draft of the National Financial Inclusion Strategy ends in two years and has a gender-intentional approach to its design and implementation. The Home-Grown Economic Reform Agenda’s second edition, i.e., the HGER 2.0, is about to be released and identifies gender as a cross-cutting issue and the financial sector as a priority sector for economic reform. The women’s national policy is being revised after three decades and has components that will impact women’s economic empowerment.

These initiatives offer a window of opportunity to reshape the annals. The challenge now is ensuring that these policy frameworks are well-intentioned and effectively executed to create meaningful change.

With the fourth industrial revolution upon us, Ethiopia stands at a crossroads like the rest of the world. Women must not only join the journey towards a digital and inclusive future but be integral in steering its course. Now is the time for those committed to gender equality and women’s economic empowerment to pay attention, act, and ensure that the call for inclusivity translates into tangible outcomes for all of Ethiopia’s citizens.