The Women Entrepreneurs Finance Initiative (We-Fi) has just announced the launch of a new financing round under which the African Development Bank’s Africa Digital Financial Inclusion Facility (ADFI) development (AfDB) will receive 15 million US dollars.
This funding will be used to develop and expand digital financial solutions for women small and medium-sized enterprises in Cameroon, Egypt, Kenya, Mozambique and Nigeria, the AfDB said in a statement.
This fourth round of funding, amounting to $54.8 million, is intended for nearly 69,000 women entrepreneurs in developing economies with access to digital technologies and finance.
These funds will enable the Facility for Digital Financial Inclusion in Africa to develop and implement programs aimed at improving digital access to finance for women entrepreneurs.
The aim, according to the same source, is to reduce the $42 billion financing gap that women entrepreneurs in Africa face and improve their operational efficiency, which will enable them to build back better after the crisis caused by the Covid-19 pandemic.
“This fourth round of We-Fi allocations comes at a critical time. Women’s economic empowerment is under pressure due to conflict and insecurity, rising prices and the lingering effects of the Covid pandemic around the world,” said Bärbel Kofler, MP and Secretary of State of the German Ministry for Economic Cooperation and Development.
“I am happy to see our implementing partners preparing such strong proposals to support women-owned businesses. Access to technology and finance will be key to unlocking the potential of women entrepreneurs,” she added.
According to Stefan Nalletamby, Director of the Financial Sector Development Department of the AfDB Group, “Digital financial solutions are essential to improve the quality of life of people in Africa and reduce the gender gap in access to finance. . This funding, which complements the Affirmative Action in Finance for Africa Women (AFAWA) program, will be used not only to expand access to finance for women small and medium-sized business owners, but also to support their economic empowerment and increase their resilience”.
Three other multilateral development banks received allocations in this fourth funding round. These are the Islamic Development Bank, the Inter-American Development Bank Group and the World Bank Group.
The Women Entrepreneurs Finance initiative, known as the We-Fi initiative, hosted by the World Bank Group, is a partnership between 14 governments, eight multilateral development banks and various public and private sector stakeholders. The African Development Bank is an implementing partner, and its Affirmative Action in Finance for Women in Africa program is a We-Fi initiative.
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