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G7 Summit: $ 251 Million For Female Entrepreneurship In Africa



From g. to d. : Akinwumi Adesina (AfDB President), Beninese artist Angélique Kidjo and French President Emmanuel Macron at a G7 press conference in Biarritz, August 25, 2019. © African Development Bank

In an effort to reduce the estimated $ 42 billion in financing gap between women and men entrepreneurs on the continent, G7 leaders granted a $ 251 million global loan to the AfDB to support the AFAWA initiative.

Fire in Amazonia, trade war between Beijing and Washington, Iran’s nuclear program … Geopolitical news issues dominated the coverage of the G7 summit held from August 24 to 26, in Biarritz, in the south-west of France. This summit bringing together the heads of state of seven of the world’s largest economic powers (United States, France, United Kingdom, Germany, Italy, Japan, Canada) was nevertheless devoted to the fight against inequalities.

In this context, eight non-G7 countries, including five from Africa (South Africa, Australia, Burkina Faso, Chile, Egypt, India, Senegal, Rwanda), and Akinwumi Adesina, President of the African Development Bank (AfDB) ) were invited. The latter, along with Emmanuel Macron and the Beninese artist Angélique Kidjo, announced the payment of a global loan of 251 million dollars to the initiative AFAWA (Affirmative action for financing for women in Africa), carried by the AfDB.
AFAWA, launched in 2016, aims to unlock access to financing for women entrepreneurs and establishes a mechanism for economic empowerment. This resolution was adopted at the African Union Heads of State Summit in January 2015, and the ADB was charged with its implementation.

“This is a great day for women in Africa,” said AfDB President Akinwumi Adesina. Investing in women’s entrepreneurship in Africa is a meaningful investment because women are not only the future of Africa, they are the present of Africa! ”

Political dialogue with the authorities concerned

“Today, women hold more than 30 per cent of Africa’s SMEs, but there is a $ 42 billion financing gap between women and men entrepreneurs. This deficit must be filled, and quickly, “he said, adding that the ADB planned to invest one billion dollars in this initiative.

The AFAWA program is based on three pillars. The first aims to improve women’s access to finance through innovative and adapted instruments, including guarantee mechanisms. The second pillar focuses on providing capacity building services for women entrepreneurs (mentoring and entrepreneurship training).

The third pillar focuses on improving the legal and regulatory environment through political dialogue with governments, central banks and other relevant authorities.

Source: Naija News