The African Development Bank (AfDB) and the African Guarantee Fund (AGF) yesterday launched the groundbreaking Affirmative Action for Women in Africa (AFAWA) Finance Series in a significant step towards fostering gender equity in entrepreneurship.
This initiative is poised to reshape the financial landscape for women-owned and women-led businesses, creating a robust pathway for sustainable and long-term growth in the small and medium enterprise (SME) sector.
The three-day event held in Sandton will have participation from executives of commercial banks, SME banks, microfinance institutions, and representatives from international organisations in a bid to build an inclusive financial ecosystem that champions women entrepreneurs.
Aimed at unlocking $5 billion by 2026 to support 30 000 women-led SMEs, this initiative has already garnered substantial backing. To date, the AfDB has approved $1.8bn and disbursed $1bn, benefiting more than 18 000 women entrepreneurs through 172 financial institutions across 43 African nations.
“According to the SME Finance Forum, women entrepreneurs in South Africa face a staggering $5bn financial gap, often viewed as high-risk by financial institutions,” remarked Melissa Basque-Roux, AFAWA Coordinator at the AfDB Group.
“Through data-driven insights, we aim to prove that women are bankable. Our mission is to transform the financial landscape for women by providing guarantees, credit lines, and gender-sensitive financial training that reassure institutions of the viability of investing in women-led businesses.”
The AFAWA initiative introduces the Guarantee for Growth (G4G) programme, implemented by AGF, which aims to provide technical assistance and guarantees to financial institutions. This will help banks adopt gender-sensitive practices, enhancing their ability to cater to the unique needs of women entrepreneurs.
Mary Vilakazi, chairperson of Banking Association South Africa, emphasized the importance of sustainable transformation.
“This partnership with the AfDB and AGF is significant because it presents a viable approach to increasing financing for women-owned SMEs. Research consistently shows that funding women-owned businesses not only enhances their ability to repay loans but also catalyses societal transformation and poverty alleviation,” she said.
BUSINESS REPORT