The Affirmative Finance Action for Women in Africa (AFAWA) Initiative has secured financing commitments exceeding $1.2 billion for on-lending women-led small and medium enterprises (SMEs) in 32 African countries. Mr. Lamin Barrow, Director-General of the African Development Bank (AfDB) Nigeria Country Department, announced this during the 5th Edition of the AFAWA Finance Series hosted in Nigeria.
The African Guarantee Fund and the Chartered Institute of Bankers of Nigeria jointly organised the event.
Barrow emphasized that the event underscores the commitment to promoting women’s economic empowerment and financial inclusion in Nigeria and Africa. The AFAWA initiative’s primary goal is to increase women’s access to finance by closing the existing $42 billion financing gap. By 2026, they aim to mobilize $5 billion in financing for African women-led businesses.
Since its launch two years ago, the AFAWA Initiative has secured more than $1.2 billion in financing commitments for on-lending to women-led SMEs in 32 African countries.
According to the World Economic Forum’s Global Gender Gap Report 2022, Nigeria was ranked 123rd out of 146 countries surveyed, indicating the need for further efforts. The AFAWA Series is vital for outreach, training, and business engagement to bridge the gender gap.
The AfDB acknowledges Nigeria’s efforts to promote financial inclusion for women but notes that substantial challenges still exist. Research findings indicate that less than half of women in Nigeria use formal financial services compared to 56 percent of men. Women-led businesses are often informal and face significant obstacles in accessing finance and expanding their operations.
A Bank baseline study conducted in 2022 examined women entrepreneurs’ challenges in Africa and proposed key principles for implementing guarantee programs in 16 African countries, including Nigeria.
Barrow emphasized that women’s economic empowerment is crucial for achieving inclusive economic growth and building resilient societies. Closing the gender gap can stimulate economic growth and reduce income inequality. The AfDB is spearheading several initiatives to enable women in Africa to thrive and believes that support through the AFAWA initiative is an integral part of the solution.
Through AFAWA, the AfDB is changing the perception that women entrepreneurs are risky investments. Barrow acknowledged Nigeria’s commitment to AFAWA-related activities and called on leaders in government, the financial sector, and the development community to join this partnership to create an enabling environment that unleashes the full potential of women.
