• Post detail
  • Interview with Marieme Esther Dassanou is the coordinator of the Affirmative Finance Action for Women in Africa (AFAWA) program
angle-left Interview with Marieme Esther Dassanou is the coordinator of the Affirmative Finance Action for Women in Africa (AFAWA) program

Description of the progress made by the AFAWA initiative, a flagship initiative of the African Development Bank

quotThe development and growth of women-owned businesses on the continent is a priority for the African Development Bankquot, Marieme Esther Dassanou, coordinator of the program quotAffirmative Action in Finance for Women in Africaquot at the African Bank of development

29 Jul 2020 - 00:00:00
Marieme Esther Dassanou is the coordinator of the Affirmative Finance Action for Women in Africa (AFAWA) program, a flagship initiative of the African Development Bank whose objective is to close the US$42 billion funding gap that plagues women entrepreneurs in Africa. Ms. Dassanou previously led the programs for the inclusion of women in the insurance and finance sectors of the International Finance Corporation (IFC). In this interview, she describes the progress made by the AFAWA initiative and outlines the prospects for the programme. You recently joined the African Development Bank as coordinator of AFAWA. Can you tell us more about this program? AFAWA is a pan-African initiative launched in May 2016 by the African Development Bank during its Annual Meeting held in Lusaka, Zambia, to promote inclusive financing focused on women in Africa to help them unlock their potential for development. entrepreneurship. With AFAWA, the Bank seeks to close a $42 billion financing gap that plagues women-led businesses (WEBs) in Africa. The Bank deploys financing tools more suited to their credit needs so that they can develop their businesses. These financial tools are associated with technical assistance to financial institutions to enable them to better meet the needs of WEBs. AFAWA further provides capacity building to women entrepreneurs to help them improve their profitability and bankability. AFAWA also has a business environment component to ensure that regulations facilitate capacity building of financial institutions and that they can lend to women. Through AFAWA, the Bank expects to unlock up to $5 billion in financing over the next six years for women entrepreneurs. Why is it important for the Bank to have such an instrument or mechanism in place? The development and growth of women-owned businesses on the continent is a priority for the African Development Bank. Women entrepreneurs on the continent are setting up businesses faster than anywhere else in the world, and in most countries they account for at least 30% of officially registered businesses. Taking into account the informal economy, one could easily say that it is women who have the greatest representation in the SME sector. Therefore, aiming to develop our continent without them would not make economic sense. They are essential and important drivers of sustainable economic growth and general and inclusive prosperity. It is important to help these companies to develop with adequate financial and commercial tools. AFAWA, thanks to its “Guarantee for Growth” program, supported by the G7, the Netherlands, Sweden and Rwanda, constitutes a good starting point. Set up jointly with the African Guarantee Fund (AGF), this program reduces the guarantees required of women when they take out a loan. AGF is a pan-African financial organization that provides financial institutions with guarantee systems and various products specifically intended to support small and medium-sized enterprises in Africa. Together, we will work with financial institutions to help them learn more about women entrepreneurs and the different risks they face. These must be taken into account in the development of financial products and services for women. The Bank is also further optimizing its lines of credit, commercial financing lines and investments in equity funds to further increase access to credit for WEBs of a certain size. The partnership signed with the Women Entrepreneurs Finance Initiative (We-Fi) allows the Bank to increase its financial coverage for women entrepreneurs through these classic tools, increase business opportunities for women entrepreneurs and develop the textile, fashion and creative industries. To date, what commitments have been received? So far, the program has received commitments from G7 members, including France, the United Kingdom, Canada, Italy and Germany, as well as other countries such as the Netherlands. Bas, Sweden and Rwanda. AFAWA has also received its first tranche of funding from We-Fi, part of which will go towards building the capacity of women-owned businesses to deal with the Covid-19 crisis. We invite other governments, especially our regional member countries, to partner with us in helping us close the funding gap for women-led businesses in Africa. In terms of implementation, what has been achieved? We have made significant progress since the G7 summit in Biarritz, France, last year. On March 31, 2020, the Board of Directors of the African Development Bank gave its approval to the two schemes that will enable us to reduce risks for women-led businesses and strengthen their ability to access credit with required guarantees. less important. We have taken a slight delay due to the Covid-19 crisis but we expect the quotGuarantee for Growthquot program to be operational before the end of 2020. In the meantime, we are optimizing credit lines, business financing companies and the Bank's equity funds to enable women to access loans and develop their businesses. The Bank is also ensuring that the SME component of its Covid-19 Rapid Response Mechanism (CRF) includes a section specifically dedicated to women entrepreneurs. She is also exploring the possibilities of using equity funds to build the capacity of women-led businesses to become more involved in Covid-19 responses, to enable them to scale up their operations and production. Who can borrow? It's not just about borrowing. The lack of access to finance is partly due to the inability of women-owned and run businesses to access credit, but also to their lack of ability to present financially viable business ideas, as well as to an environment that is not always conducive to better access to financial services for women. The AFAWA approach takes all of these elements into account. Thus, depending on their needs, women entrepreneurs will be able to benefit from AFAWA at different levels, particularly with regard to access to financing for those with viable and bankable projects, but also for access to training and capacity building. skills for those who are not yet eligible for a loan, but could improve their skills in financial management, bookkeeping, marketing and any other area to improve their ″bankability″.

Images

20