North Africa women entrepreneurs get boost as bank funds push gender-lense financing
The African Development Bank (AfDB), through its AFAWA initiative – Affirmative Finance Action for Women in Africa, has renewed its commitment to support women entrepreneurs across the Middle East and North Africa by accelerating”gender-lens” financing.
AFAWA has partnered with more than 100 financial institutions since 2021 and has been able to direct close to US$ 800 million to women-led businesses. This capital injection has opened access to credit and capital for more than 12,000 women entrepreneurs across Africa, which is usually a very challenging task for women through conventional channels.
The money is not the only source of support. AFAWA also creates a conducive environment for women by offering technical assistance, mentoring, and business training. This enables women entrepreneurs to polish their business plans, learn financial literacy and expand their businesses.
In many cases, women in North Africa, where finance has traditionally been difficult to access, this scheme means not only financing but also the opportunity to develop viable businesses. The step is anticipated to promote women’s economic empowerment, lessen gender disparities in finance, and accelerate regional economic growth.
The advocate also arises when the inclusion of women in the economy and women-led growth are considered the core of the African development model. By lowering barriers such as insufficient collateral and by sharing risks with banks, AFAWA creates opportunities for women to be leaders of SMEs, start-ups, or existing businesses providing that they want to venture in the sectors where women are less represented.
Focusing on North Africa might have the impact across the continent that is, other financial institutions and governments seeing the success stories and thus being willing to adopt similar gender-responsive lending frameworks. This essentially implies that entrepreneurship for thousands of African women, from Tunisia to Morocco, Algeria and the rest of the region, is gradually making the transition from being an aspiration to becoming a reality. Their businesses can contribute to communities, create jobs and help close the economic gender gap.
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