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Designing Financial Tools That Fit Women's Lives

Evidence from Burkina Faso and Senegal on risk, seasonality, and financial inclusion

Clara Delavallade

World Bank - Gender Innovation Lab

IFAD webinar – May 2026

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Women Manage Multiple Overlapping Risks

The seasonal tradeoff

Harvest prices are lowest when cash needs are highest. Women face additional daily pressures: illness, caregiving, school fees, social obligations.

What products help women manage these overlapping risks?

Two studies

1. Warrantage in Burkina Faso — an inventory credit system that helps farming households manage the timing of crop sales.

2. Risk management preferences in Senegal & Burkina Faso — how women and men value different financial products when facing different types of risk.

~25%

Food Shortages

Households reporting recent food insecurity

>33%

Recent Illness

Households experiencing serious illness in prior months

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Warrantage in Burkina Faso

An inventory credit system that helps farming households manage

the timing of crop sales.

Store Harvest

Deposit crops in community warehouse

Borrow Against Grain

Access loan up to 80% of value

Sell Later

Release and sell when prices rise

The system helps households "buy time" — delaying sales until prices improve later in the season.

>90% Storage Take-Up

Near-universal adoption of the storage component

~40% Credit Take-Up

More moderate uptake of the loan component

+1/3 Sales Revenue

Increase from delaying sales to higher-price periods

Livestock & Education

Resources reallocated toward investments

Warrantage is not only solving a credit constraint — it is helping households manage liquidity, self-control, and seasonal pressure. Livestock functions as a buffer asset for future shocks.

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Beyond Revenue: Investment Spillovers

Households are not simply consuming more — they are reallocating toward productive and protective investments.

Education

Significant increase in household expenditures on schooling and learning materials for children.

Livestock as Buffer Asset

Growth in livestock holdings — a protective asset households can rely on later when shocks occur.

Agricultural Reinvestment

Increased investment in high-quality agricultural inputs for subsequent growing seasons.

No unintended negative impact on village-level relations or sharing norms within the community

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Two Pathways, Similar Results

Both credit and storage-only users benefited from warrantage — but through different mechanisms.

With Credit

Access to liquidity after harvest allowed households to avoid distress sales and store more of their crop until prices increased later in the season.

Cost-effectiveness: Production gains vs. program costs

Relatively simple financial tools, built on existing community structures and basic warehouse infrastructure, can substantially improve rural households’ ability to manage seasonality, liquidity, and investment timing.

Source: Delavallade & Godlonton (Journal of Development Economics, 2023)

Storage Only

The warehouse itself acted as a commitment device: once grain was stored, households were less pressured to sell early — helping them delay sales and benefit from higher prices later.

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Do Women and Men Need the Same Tools to

Manage Liquidity and Risk ?

From households to individuals

If timing and liquidity tools are so valuable, the next question is whether women and men value the same kinds of financial products.

The second study — covering Senegal and Burkina Faso — looks directly at financial product preferences when individuals face different types of risk.

Women often face a different combination of risks than men — and are often the ones managing overlapping pressures on a daily basis.

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The experiment

A randomized field experiment with 806 farmers and ROSCA members (half women) in rural Burkina Faso and Senegal.

Received a real cash endowment : 6,000 FCFA (~$12)

≈ half a bag of fertilizer

6,000 FCFA (~$12)

≈ half a bag of fertilizer

One of 4 products randomly offered

Kept in cash

T1 — Weather index insurance

T2 – Agricultural savings at home

T3 – Agricultural savings with treasurer

T4 – Emergency savings with treasurer

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The Four Financial Products

T1 — Weather Index Insurance

Objective: Protect against drought and rainfall shocks

Design: Insurance payouts triggered by weather index

  • Indexed to rainfall and vegetation conditions
  • Participants chose how much to insure
  • Covered all crops cultivated

T2 — Ag Savings at Home

Objective: Facilitate agricultural investment

Design: Soft commitment, money kept at home in labeled envelopes

  • Savings remained fully accessible at home
  • Agricultural labeling is a behavioral nudge, not binding

T3 — Ag Savings with Treasurer

Objective: Facilitate agricultural investment

Design: Hard commitment, savings held by group treasurer

  • Savings held externally with recorded withdrawals
  • Emphasized investment in farming

T4 — Emergency Savings with Treasurer

Objective: Help households manage emergencies

Design: Hard commitment + emergency labeling

  • Savings held externally by treasurer with recorded withdrawals
  • Emphasized flexibility for emergencies and shocks

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Hypotheses and Key Finding

Three hypotheses tested across Senegal and Burkina Faso

H1

Insurance vs. Savings Demand

Men show stronger demand for index insurance, while women prefer savings — particularly emergency savings that solve liquidity constraints.

H2

Agricultural Savings and Investment

Agricultural savings products, especially those with hard commitment features, increase input investment and yields — particularly for men.

H3

Gender Disparities in Agricultural Outcomes

Lower take-up of insurance by women contributes to gender disparities in agricultural outcomes.

KEY FINDING

Women and men do indeed value these financial products very differently — product design must reflect the distinct risks and constraints each group faces.

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Why Index Insurance Falls Short for Women

The basis risk problem

Index insurance covers weather risk but excludes labor-disrupting health shocks. For women, the uninsured risk is too high.

Insurance stimulates agricultural investment, but savings are essential for smoothing consumption during illness.

What works instead

Emergency savings with light commitment features let women protect resources from social pressure while preserving liquidity.

Agricultural labeling encouraged men to invest but made it harder for women to redirect funds during household crises.

+30pp

Insurance Gap

Men more likely to purchase index insurance than women

95%

Commitment Retention

Hard-commitment participants maintained positive balances throughout

↑ Fertilizer

Insurance Effect

Insurance increased fertilizer spending and agricultural investment

+ Land

Emergency Savings

Women with emergency savings cultivated more land than those with ag savings

↓ Food

Labeling Tradeoff

Women in ag savings consumed non-essential foods less frequently

↑ Yields

Ag Savings for Men

For men, ag savings increased input use, yields, and food security

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Four Operational Implications

For IFAD projects working on rural financial inclusion:

1. Hybridity

Financial products need to reflect the full range of risks households — and especially women — are managing, not only agricultural production risk.

2. Flexibility

Women value products that help protect resources while still allowing them to respond to emergencies and day-to-day household shocks.

3. Labeling and design

How savings are labeled, when liquidity becomes available, whether resources are protected from immediate pressure — these details substantially shape women’s ability to invest.

4. Bundling

Combining agricultural risk-management tools with emergency liquidity or health-related protection may better match women’s actual risk environment than standalone agricultural products.

Closing gender gaps in financial inclusion is not only about expanding access to existing products. It is also about designing financial tools that better match the realities of women’s economic lives.

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Thank You

Clara Delavallade • World Bank — Gender Innovation Lab

Sources:

Locking Crops to Unlock Investment: Experimental Evidence on Warrantage in Burkina Faso, with S. Godlonton. Journal of Development Economics. 2023. Vol. 160. Policy Brief

Financial Inclusion for Agricultural Investments: Experimental Evidence on Male and Female Farm Managers in the Sahel, with F. Dizon, R. Hill and J.-P. Petraud. Oxford Development Studies. 2026: 1-24.