Cooperative Financial Literacy: Empowering Women for Economic Growth and Financial Inclusion

A recent study by Eseza et al. (2025) titled “The Influence of Cooperative Financial Literacy, Training and Advisory Strategies on Women’s Financial Empowerment: A Review” published in the Asian Journal of Economics, Business, and Accounting reveals that cooperative financial literacy initiatives play a crucial role in enhancing women’s financial knowledge, skills, and confidence, ultimately contributing to their financial empowerment.

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Cooperative financial literacy initiatives enhance women’s financial knowledge, skills, and confidence, leading to greater financial empowerment, inclusion, and economic growth.– Eseza et al. 2025

This article examines the impact of cooperative financial literacy programs on women’s financial empowerment, particularly in rural areas. Financial empowerment is a crucial driver of gender equality and economic growth, aligning with sustainable development goals. Cooperatives, with over one billion members globally, play a vital role in fostering financial literacy and inclusion, providing accessible platforms to uplift women economically.

Cooperative financial literacy initiatives significantly enhance women’s financial knowledge, skills, and confidence, enabling them to make informed financial decisions. Financially empowered women are more likely to invest in their families and communities, leading to improved health and education outcomes. However, women in developing economies still face considerable barriers to financial inclusion, highlighting the need for targeted strategies to address these challenges. This study provides evidence-based recommendations to shape financial literacy initiatives that contribute to economic stability, increased income, and gender equality through cooperative structures.

How the Study was Conducted

The authors employed a comprehensive review of existing literature, including peer-reviewed articles, reports, and gray literature. This helped them identify effective strategies, key influencing factors, and areas for future research. The study gathered data from various sources, focusing on cooperative financial literacy initiatives and their impact on women’s financial empowerment. The data included information on financial knowledge, skills, and confidence among women in rural areas. The authors used descriptive statistics to analyze the data. They examined the relationships between independent variables (cooperative financial literacy, training, and advisory strategies) and mediating variables (financial knowledge, financial attitude, and financial skills). These mediating variables were then linked to the dependent variable (financial empowerment of women). The study included an empirical review of existing research on the topic. This involved analyzing case studies and data from various regions, with a focus on developing economies. The authors developed a conceptual framework to illustrate the relationships between the variables. This framework helped them understand how cooperative financial literacy, training, and advisory strategies influence women’s financial empowerment.

What the Authors Found

The authors found that cooperative financial literacy initiatives play a crucial role in enhancing women’s financial knowledge, skills, and confidence, ultimately contributing to their financial empowerment. These programs equip women with essential financial concepts such as budgeting, saving, investing, and debt management, enabling them to make informed financial decisions.

The study also posits that women who participate in financial literacy training develop greater confidence in handling financial matters and acquire practical skills that allow them to manage their finances effectively. This training also leads to increased savings rates, with financially literate women more likely to save money and invest in their businesses and families, fostering economic stability and growth. Additionally, financial empowerment has a ripple effect, as women who gain financial knowledge tend to invest in their families’ health and education, leading to improved health outcomes and higher education levels for their children, which benefits entire communities.

Despite these advantages, women in developing economies continue to face significant barriers to financial inclusion, such as limited access to financial services, restrictive cultural norms, and inadequate financial infrastructure. Cooperatives, with their community-driven approach and extensive reach, are instrumental in overcoming these challenges by providing financial services, training, and advisory support, thereby promoting financial inclusion and empowerment.

Why is this important?

Economic Growth: Financially empowered women contribute significantly to economic growth. According to the World Bank, empowering women financially can boost economic growth by up to 12%. This is because financially literate and empowered women are more likely to invest in their businesses, families, and communities, leading to overall economic development.

Poverty Reduction: Women’s financial empowerment plays a critical role in reducing poverty. Financially empowered women are better equipped to manage their resources, save for the future, and invest in income-generating activities. This helps lift families and communities out of poverty.

Improved Health and Education: Financially empowered women are more likely to invest in their families’ health and education. Research by the International Labour Organization shows that financially empowered women lead to better health outcomes (15% increase) and higher education levels (20% increase) for their children.

Gender Equality: Promoting women’s financial empowerment is essential for achieving gender equality. Financial literacy initiatives help bridge the gender gap in financial inclusion, providing women with the knowledge, skills, and confidence needed to participate fully in economic activities.

Financial Inclusion: Despite the importance of financial empowerment, women in developing economies face significant barriers to financial inclusion. Cooperative financial literacy programs help address these barriers by providing women with access to financial services, training, and advisory support.

Sustainable Development: Women’s financial empowerment is a critical component of achieving sustainable development goals. By promoting financial inclusion and literacy, we can work towards a more inclusive and sustainable future for all.

Policy and Program Design: The findings from this study provide valuable insights for policymakers and practitioners. Evidence-based recommendations can inform the design and implementation of effective cooperative financial literacy programs, ensuring that they address the unique challenges faced by women in different regions.

What the Authors Recommended

• Policymakers and practitioners should focus on designing and implementing cooperative financial literacy programs that are tailored to the unique needs of women in different regions, and programs should address cultural, social, and economic barriers to financial inclusion and empowerment.
• Enhance the capacity of cooperatives to deliver financial literacy training, advisory services, and support to women. This includes training cooperative staff and leaders to effectively manage and deliver these programs.
• The study advocates that policymakers should utilize a community-based approach to reach women in rural areas. Cooperatives should engage community leaders and members to ensure the programs are relevant and accessible.
• Policymakers and practitioners should incorporate technology, such as mobile banking and online training platforms, to improve access to financial literacy programs. This is particularly important in regions with limited infrastructure.
• Establish monitoring and evaluation frameworks to assess the effectiveness of cooperative financial literacy programs. This will help identify best practices and areas for improvement.
• Advocate for policies that support women’s financial empowerment and inclusion. This includes creating an enabling environment for cooperatives to operate effectively.
• In addition, policymakers and practitioners should foster partnerships and collaboration between cooperatives, government agencies, non-governmental organizations, and the private sector. This will help leverage resources and expertise to enhance the impact of financial literacy programs.
• Furthermore, policymakers and practitioners should focus on targeted efforts to improve financial inclusion among women, especially in regions with lower rates of financial literacy and inclusion.

In conclusion, cooperative financial literacy initiatives are a powerful tool for enhancing women’s financial empowerment, particularly in developing economies. By equipping women with essential financial knowledge, skills, and confidence, these programs enable them to make informed decisions that drive economic growth, reduce poverty, and promote gender equality. Despite existing barriers, cooperatives provide an effective platform for fostering financial inclusion through training, advisory support, and accessible financial services. To maximize impact, policymakers and practitioners must implement targeted strategies, leverage technology, and foster collaboration across sectors. Investing in women’s financial literacy is not just a step toward individual empowerment—it is a catalyst for sustainable development and economic resilience for entire communities.

AR Managing Editor (2025). Cooperative Financial Literacy: Empowering Women for Economic Growth and Financial Inclusion. Retrieved from https://www.africanresearchers.org/cooperative-financial-literacy-empowering-women-for-economic-growth-and-financial-inclusion/