AfDB’s AFAWA Initiative Set To Mobilize $5bn For African Women-led Businesses

The Affirmative Finance Action for Women in Africa (AFAWA) initiative, a pan-African endeavor by the African Development Bank, has announced its goal to mobilize $5 billion in financing for African women-led enterprises by 2026.

This declaration came from Lamin Barrow, the Director General of the African Development Bank Nigeria Country Department, during the fifth AFAWA Finance Series held in Lagos.

Barrow emphasized the mission of the AFAWA initiative, saying, “Our goal is to mobilize $5 billion in financing for African women-led businesses by 2026. Since we launched AFAWA a little over two years ago, the initiative has approved $1.2 billion for on-lending to women-led enterprises in 32 countries across Africa.”

The AFAWA Finance Series, a vital component of this initiative, brought together government representatives, policymakers, and financial institution leaders to explore AFAWA’s partnership services for the Nigerian market.

Grace Ogbonna, the Acting Permanent Secretary/Director Economic Research and Policy Management Department of the Federal Ministry of Finance, emphasized the importance of women’s empowerment and equal economic participation, stating that “Women constitute a substantial portion of our population, and their full and equal participation in the economy is not just a matter of social justice but is also one of economic parity.”

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The series also showcased the AFAWA Guarantee for Growth program, which offers a risk-sharing mechanism and capacity development assistance to encourage financial institutions to increase their lending to women-owned small and medium enterprises.

Jules Ngankam, the African Guarantee Fund’s Group Chief Executive Officer, highlighted the financial imbalances that have limited Africa’s potential, saying, “In Africa, 70 per cent of women are excluded financially, including in the areas of access to credit, land ownership, job opportunities, leadership positions, and wealth creation.”

Ngankam commended the government of Nigeria for promoting women-led SMEs and expressed eagerness to collaborate with policymakers to create a more conducive environment for women entrepreneurs.

The AFAWA Finance Series has already made its mark in Tanzania, the Democratic Republic of the Congo, Ghana, and Angola, with Nigeria now presenting a substantial opportunity for scale.

Dr. Beth Dunford, the African Development Bank’s Vice President for Agriculture, Human, and Social Development, noted that “Micro, small, and medium-sized enterprises make up more than three-quarters of Nigeria’s workforce. With the right support, they have the potential to accelerate the country’s progress toward its economic development goals.

“This initiative seeks not only to empower women but also to harness their potential as a driving force for economic growth and development across the African continent.

AFAWA’s mission to close the financing gap for women-led businesses is set to reshape the business landscape in Africa, fostering an environment of inclusivity and economic prosperity.