The African Development Bank (AfDB) has secured a $61.8 million funding facility from Women Entrepreneurs Finance Initiative (We-Fi) to support women entrepreneurs in Nigeria and 20 other African countries.
The funding is on the platform of its Affirmative Finance Action for Women in Africa (AFAWA) programme.
We-Fi is a partnership among 14 donor governments, eight multilateral development banks and other public and private sector stakeholders, established in October 2017 and hosted by the World Bank Group.
The partners have committed $354 million to date to the initiative, aimed at addressing financial and non-financial constraints faced by women-owned/led small and medium enterprises in developing countries.
AfDB noted that with the We-Fi funding, AFAWA intends to improve access to finance for 40,000 women-owned/led small and medium enterprises (SMEs) in 21 African countries where women entrepreneurs face greater challenges in accessing finance, markets, knowledge, and mentoring programs.
“Specifically, the program’s activities will be implemented in Botswana, Burundi, Chad, Comoros, Côte d’Ivoire, Democratic Republic of Congo, Ethiopia, Kenya, Mali, Mauritania, Mozambique, Niger, Nigeria, Senegal, Sierra Leone, South Africa, Tanzania, Tunisia, Uganda, Zambia, and Zimbabwe,” the statement added.
On the development, AfDB’s Director for Gender, Women and Civil Society, Vanessa Moungar stated: “This substantial support from the Women Entrepreneurs Finance Initiative, We-Fi, will help us scale up our actions and achieve greater results for women entrepreneurs across the continent. Our ambition with AFAWA goes beyond regular assistance to women in business.”
AfDB said that the activities funded by We-Fi will be aligned with AFAWA’s three-pronged approach to holistically addressing the $42 billion financing gap between women and male entrepreneurs.
“The first AFAWA pillar aims to increase access to finance for women through innovative and tailored financial instruments, including guarantee mechanisms to back up women entrepreneurs.
“In collaboration with strategic partners, the second pillar focuses on providing capacity-building services to women entrepreneurs, including access to mentoring and entrepreneurship training courses. AFAWA also helps financial institutions address the specific needs of women-owned/led businesses through tailored financial and non-financial products.”
“The third pillar concentrates on improving the business environment for women by engaging in policy dialogue with central banks and other relevant authorities and stakeholders.
“Lastly, the We-Fi funding will reinforce initiatives of the bank and partners, such as UN Women and CARE International, in favour of women entrepreneurs in various sectors that are frequently overlooked by traditional financiers, donors and governments.
These special initiatives include Fashionomics Africa and the African women tech entrepreneurs program,” AfDB stated.