Banking on Potential: Boosting women’s access to finance in Afghanistan

Afghan women are running businesses in an increasingly restrictive and fragile economic environment. Since 2021, declining participation in the formal labour market has pushed many women towards home-based and informal businesses as a primary source of income. These women-owned businesses reflect both necessity and resilience, helping women support themselves and their families despite significant barriers.

Yet most women-owned businesses are small and informal, limiting their access to the finance and services needed to grow and withstand economic shocks. Only 6.8 per cent of women have access to a personal or joint bank account, while just 5 per cent of loans accessed by women-owned businesses come from formal banks. Limited asset ownership, documentation barriers, restricted mobility and low financial literacy further constrain women’s access to formal financial services.

This brief highlights practical pathways to expand financial inclusion, including gender-responsive Islamic finance, microfinance and digital financial services. Evidence from UN Women-supported initiatives shows that adapting financial products and delivery models to women’s needs can increase access and uptake, from smaller loans and flexible repayment terms to female banking agents and community-based savings mechanisms.

Expanding access to finance is both feasible and urgent. With appropriate regulatory, institutional and investment support, financial services can help women-owned businesses build resilience, grow, access markets and contribute more fully to the economy.