UK aid to break down barriers for female entrepreneurs in Africa

The International Development Secretary Alok Sharma has announced that the UK will significantly increase its support to empower female entrepreneurs and businesswomen across Africa. UK aid will provide business advice, training and financial support to back women-led businesses supporting economic growth across the continent.

An equal role for women in the economy is essential to sustained growth and will help lift millions out of poverty. Experts estimate that advancing economic equality globally could add $12 trillion (or 11 percent) to the global Gross Domestic Product (GDP).

Despite having the highest concentration of female entrepreneurs in the world, women in a number of African countries face greater barriers to starting their own businesses than their male peers. This is because women often find it harder to access further education, get business loans, sign contracts and own property based on their gender.

Increased funding through UK aid will incentivise African banks across the continent to lend to women by reducing the costs, while providing expert training to female entrepreneurs in essential skills to make their businesses a success.

Research shows that women typically reinvest up to 90 percent of their income in the education, health and nutrition of their family and community, compared to 40 percent for men. This means that investing in female-led businesses can transform societies as well as women’s lives.

By leveraging the economic potential of tens of thousands of women, the announcement of £30 million of UK aid will:

• Provide up to 10,000 budding female entrepreneurs with essential training and mentoring to help them better manage their businesses, including marketing, financial and business planning.
• Start partnerships with up to 30 banks across Africa, helping to bring down the cost and incentivise lending to thousands of women.
• Transform women’s job opportunities and boost African economies to help countries become our trading partners and build their future beyond aid.

The UK aims to be the biggest G7 investor in Africa by 2022. The announcement builds on the UK’s existing partnerships with African nations to create mutual trade and investment opportunities, ahead of the UK-Africa Investment Summit which is due to take place in London next year.

Original source: DFID
Published on 25 August 2019