Empowering Women in Ethiopia's Coffee Sector: The Role of Digital Payments

Agriculture stands as the cornerstone of Ethiopia's economy, with women constituting a significant 75% of the sector's labor force. Yet, despite their pivotal role, women face substantial income disparities, particularly in the vital coffee production industry. Research reveals a staggering gender income gap, with women receiving only about 34% of the income generated from coffee production. This disparity is fueled by various factors, including limited access to land, credit, and market opportunities.

In the quest for gender equality and economic empowerment, digitizing agricultural payments emerges as a transformative solution. By embracing digital inclusion, we pave the way for financial empowerment, smoother transactions, and enhanced transparency. However, the journey towards digital empowerment is not without its hurdles. Challenges such as limited phone ownership, digital literacy gaps, and connectivity issues in remote areas must be addressed to ensure seamless integration into the digital financial ecosystem.

Sara Yirga, President of the Ethiopia Chapter of the International Women’s Coffee Alliance (IWCA), emphasizes the importance of a comprehensive approach to overcome these barriers. "It's going to take a little more effort to integrate women into the digital payment landscape," she notes. "Addressing the underlying barriers that hinder their adoption is crucial to ensure the seamless transition into the digital financial ecosystem."

Established in 2016, the Ethiopia Chapter of IWCA is dedicated to supporting women in the coffee sector. Through initiatives focused on tackling structural barriers, such as limited market access and fair compensation, digital payments emerge as a catalyst for change. Transparent transaction trails, facilitated tracking, and fair compensation mechanisms provided by digital payments offer a solution to long-standing challenges within the supply chain.

Sara's firsthand experience underscores the transformative power of digital payments in the coffee industry. "For my workers, salaries directly go to their bank accounts, preventing unnecessary spending," she shares. "The shift to digital not only eases their lives but also reinforces mindful spending."

Ethiopia's National Digital Payments Strategy (NDPS) serves as a beacon towards achieving Digital Ethiopia by 2025. This strategic roadmap prioritizes responsible digitization and has made significant strides in bridging the gender gap in financial inclusion. Through initiatives like the Reaching Financial Equality for Women action plan, tailored policies and programs are being implemented to address the specific barriers women face in accessing financial services.

Digital payments offer them the tools to enhance productivity, expand market reach, and shape their financial futures. "Digital is safe, digital is fast, and digital is the way forward," Sara affirms.

As we move towards a digital future, let us continue to champion the empowerment of women in the coffee sector and beyond. By embracing digital payments, we not only drive economic prosperity but also pave the way for a more inclusive and equitable society.

Sara Yirga's journey exemplifies the transformative impact of digital payments, underscoring its pivotal role in shaping a brighter future for women in Ethiopia's coffee industry.