International Women’s Day on 8 March gives us the opportunity to reflect on the significance of women’s empowerment. We talked to Katarina Zdraljevic, our Co-Head of Group Sustainability, about the underrepresentation of females in the global economy, the needs of women-led businesses and the opportunities for the ProCredit group with regard to the empowerment of women.
1. What is the current situation of women in the world economy?
Empowering women is essential for gender equality, economic growth and inclusive societies. Despite the progress made, women worldwide still face significant challenges and earn approximately 23% less than men. Furthermore, they spend about three times as many hours carrying out unpaid domestic and care work1. The World Economic Forum’s Global Gender Gap Report 2024 indicates that it could take up to 134 years to achieve full gender parity at the current rate2.
Women are one of the largest and most diverse underrepresented groups in the labour market. The situation in many countries in which the ProCredit group is active is no exception: Almost two-thirds of working-age women in the Western Balkans are either inactive or unemployed3. This underrepresentation extends to the entrepreneurial sector as well: On average, only one in every five businesses in this region is owned or co-owned by women4.
2. Where does the ProCredit group stand when it comes to gender equality?
Notably, 52% in managerial roles at the ProCredit group level are women. This achievement is the result of transparent recruitment, fixed salaries, career opportunities, equal training access and our quest to combat unethical behaviour – all driven by strong leadership. Noteworthy in this context is our focus on individual development and not the fulfilment of quotas.
We address unconscious biases to enhance client trust and loyalty, improve service access, and contribute to fair development. We collaborate with women’s networks such as 2X Global and the Financial Alliance for Women, for example.
3. What is ProCredit’s vision for the women’s market?
Our goal is to target the female economy, recognising its immense potential for the countries in which we operate and for the ProCredit group. We focus on smaller businesses and women entrepreneurs who often need additional support, owing to social and economic barriers. In the future, we plan to extend this approach to employed women in our retail segment, broadening our reach and contributing to women’s financial inclusion across various business scales. Our tailored services are currently available in several countries: Ecuador, Kosovo, Albania, Serbia, Georgia and North Macedonia. We observe that potential obstacles typically stem from societal biases and could range from limited equity, due to unbalanced inheritance laws, limited access to networks or the limited availability of industrial knowledge.
Based on this understanding, we offer loans with lower or no collateral requirements, for example, as this flexibility can be crucial for women who perhaps do not have traditional assets to pledge as collateral. Furthermore, by offering longer repayment periods, we enable women-led businesses to plan for the long term and implement growth strategies. This also allows them to manage their cash flow more effectively.
The non-financial services for women are equally important, serving as a powerful means to break the glass ceiling. These services include training sessions, networking, and leadership mentoring, all designed to foster their growth and create additional opportunities for the advancement of their businesses.
We still have a ways to go, but it’s a start!
1Gender gap in average wages
2Global Gender Gap Report 2024 | World Economic Forum
3Western Balkans: Increasing Women’s Role in the Economy
4Regional Cooperation Council | Western Balkans: RCC to present ‘Women Who Launch – Regional Network of Women in Entrepreneurship’
