AFAWA Finance Series Paves the Way for Women’s Financial Inclusion

The African Development Bank Group, in collaboration with the African Guarantee Fund, recently presented a compelling case for the transformative power of enhancing women’s financial inclusion on Nigeria’s economy.

The distinguished audience included senior Nigerian government and banking leaders, along with representatives from AFAWA donor countries, including the Netherlands, France, and Italy.

The occasion marked the launch of the AFAWA Finance Series Nigeria, a pivotal component of the African Development Bank’s groundbreaking Affirmative Finance Action for Women in Africa (AFAWA) initiative, held on October 17.

The goal? To shed light on AFAWA’s partnership services tailored to the Nigerian market, bringing together government representatives, policymakers, and financial institutions.

Grace Ogbonna, Director for Economic Research and Policy Management in the Ministry of Finance, eloquently represented Nigeria’s Minister of Finance, Wale Edun.

She emphasised the imperative nature of women’s empowerment, stating, “The topic of women’s empowerment is one that demands our attention, our commitment, and our collective efforts to ensure that women have equal opportunities to fully participate in our nation’s economic growth.”

The series is set to delve into avenues for refining regulatory frameworks that can facilitate financial access for women-led small and medium enterprises.

Additionally, participants will gain insights into AFAWA’s guarantee mechanism and how it can mitigate risks for financial institutions lending to women-led start-ups.

Central to the discussions is the AFAWA Guarantee for Growth program, a collaborative initiative between the African Development Bank and its implementing partner, the African Guarantee Fund.

This risk-sharing facility, established in 2021, aims to unlock up to $2 billion in financing for women-led small and medium enterprises in Africa through financial institutions.

Dr. Beth Dunford, Vice President for Agriculture, Human and Social Development at the African Development Bank, spoke of Nigeria’s unique potential for this initiative, highlighting that micro, small, and medium-sized enterprises constitute over three-quarters of the country’s workforce.

With the right support, they possess the capacity to expedite Nigeria’s journey towards economic development goals.

Moreover, the AFAWA Guarantee for Growth program extends a helping hand to financial institutions, motivating them to lend to women-led SMEs through incentives and assistance.

Research has shown that women tend to exhibit better loan repayment rates than men and reinvest up to 90% of their income in education, health, and community development.

Jules Ngankam, CEO of the African Guarantee Fund, highlighted the pervasive financial exclusion of women in Africa, underlining that this disparity hampers the continent’s full potential.

He lauded the Nigerian government’s efforts to promote women-led SMEs and expressed the Fund’s enthusiasm for further collaboration with the government and policymakers to bolster the business environment for women entrepreneurs.

The Finance Series also introduces training programs that enable financial institutions to evaluate their products and services through a gender-smart lens, ultimately tailoring them to the unique needs of women entrepreneurs.

In closing, Lamin Barrow, Director General for Nigeria at the African Development Bank, emphasised that through AFAWA, perceptions of women entrepreneurs as risky investments are being challenged.

The bank recognises Nigeria’s vast potential for AFAWA-related activities and, in partnership with the private sector, is actively working to enhance women’s access to finance through innovative financing instruments. The AFAWA Finance Series in Nigeria is a significant step towards achieving this goal.

Source: African Development Bank