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Add to Preferred SourcesThe African Development Bank has partnered with four other development finance bodies and private equity financiers to provide US$3 billion to support women in business.
The bank plans to increase tenfold an initial US$300 million in financing for female businesses with the aim of gaining women access to affordable finance and address legal and regulatory challenges to their financial inclusion.
(Centre) Jennifer Blanke, AfDB vice president for agriculture, human and social development
“Our goal is simple: To back women-owned businesses, spark innovation and unleash prosperity for women across Africa,” said Jennifer Blanke, the bank’s vice president for agriculture, human and social development, in a document detailing the plan.
Statistics gathered by the bank show female-owned businesses in Africa face a financing gap of US$21 billion to US$26 billion as of 2011, with the gap in North African revealing the biggest financing gap of US$13.8 billion for women business owners. Women in most regions on the continent lack the securities and assets required to guarantee access to the business loans, raising their risk profile among lenders.
The African Development Bank will work alongside the International Finance Corporation (IFC) and UN Women to catalyse the full amount under its Affirmative Finance Action for Women in Africa portfolio. Included among the partners is the Arab Bank for Economic Development in Africa and the Women’s World Banking, a non-profit organisation supporting 40 independent micro-financiers to low-income groups.
The bank is considering raising additional funds to create a similar financing window, this time using a combination of co-financing, mobilisation of capital from the UN Framework Convention for Climate Change’s Green Climate Fund, and efforts to give advisory and technical assistance to female business owners.
Original source: DevFin.
Posted on 15 September 2017