Analyzing Gender Disparity Through a Financial Inclusion Lens in Tanzania: Is Government Gender-based Policy Intervention Helpful?

This paper examined gender disparities in financial services utilization in Tanzania benefiting from FinScope surveys database. The FinScope surveys are national surveys representative of individuals aged sixteen years or older conducted after every 5 years. The paper used the data collected in 2009, 2013, 2017 and 2023. The Kruskal-Wallis test was conducted to assess gender differences in the usage of financial services and financial exclusion, and whenever the test indicated significant differences a Dunn’s post-hoc test was performed for significant variables to determine which specific groups (male or female) differed significantly within those parameters. The findings reveal significant gender differences in formal financial services usage, informal financial services usage and complete financial exclusion. The results show that women are left behind by men in usage of formal financial services throughout the period examined, while the rate of women using informal financial services is reported to be higher than that of their men counterparts. It was further found that a greater percentage of women are completely financially excluded as compared to men. These results underscore the need for targeted policies to promote financial inclusion and reduce gender-based financial inequalities in Tanzania. The study proposes policymakers to prioritize targeted interventions to address gender disparities in financial service usage. Initiatives such as gender-responsive financial products, financial literacy programs and streamlined account- opening processes can help bridge the gap. Efforts should also aim to reduce cultural and procedural barriers that disproportionately affect women, ensuring equitable access to financial services.