AfDB to Boost Funding for Women-Owned Small Businesses to $2 Billion
The African Development Bank (AfDB) has announced plans to increase its funding support for women-owned small businesses from $1.7 billion to $2 billion through its Affirmative Finance Action for Women in Africa (AFAWA) initiative. This announcement was made by Marie Akin-Olugbade, Vice-President of the AfDB’s Regional Development, Integration, and Business Delivery Complex, during a workshop on bankable business proposals for youths and women in agriculture, held in Abuja on Monday.
Akin-Olugbade highlighted that women entrepreneurs in Africa face significant challenges in accessing finance and resources, with an estimated $42 billion financing gap. She noted that about 41 percent of businesses in Nigeria are led by women, and nearly 23 million women run micro-businesses. However, only 10 percent of commercial loans in Nigeria are directed to women, mirroring trends across sub-Saharan Africa.
Key Points from the Workshop
AFAWA Initiative:
– Funding Increase: The AfDB aims to raise its support for women-owned businesses to $2 billion by the end of the year.
– Impact: The increased funding is expected to support up to 30,000 women-owned small and medium-sized enterprises.
– Economic Benefits: Empowering women in agriculture can transform communities, as women tend to reinvest up to 90 percent of their income into their families and communities.
Youth Entrepreneurship Investment Banks:
– Collaboration: The AfDB, together with the French Development Agency and other partners, is establishing Youth Entrepreneurship Investment Banks across Africa.
– Initial Funding: The board of directors has approved $16 million for Liberia and $12 million for Ethiopia. Several other countries, including Nigeria, have shown interest.
3. Agricultural Support in Nigeria:
– Special Agricultural Processing Zones: The AfDB, in collaboration with the Islamic Development Bank and the International Fund for Agricultural Development, has provided $520 million to establish these zones in seven states and the FCT. These zones will help private agribusinesses to process and add value to agricultural commodities.
– Emergency Food Production: The AfDB has also allocated $134 million to Nigeria to boost local production of wheat and cassava, helping to reduce food prices under the National Agricultural Growth Scheme.
Government Commitment
Abubakar Kyari, the Minister of Agriculture and Food Security, reaffirmed the government’s commitment to agriculture and food security, emphasizing that supporting agriculture is crucial to achieving the administration’s agenda. He stated that the government is willing to support the 21.1 percent of Nigerian youths interested in participating in agriculture.
Youth Potential in Agriculture
Lamin Barrow, AfDB Director-General for the West Africa Region, also spoke at the workshop, emphasizing that the youth represent a substantial reservoir of talent and energy, which is essential for revitalizing the agriculture sector.
This increase in funding and support initiatives from the AfDB underscores a significant step towards empowering women and youth in agriculture, addressing financial gaps, and fostering economic growth and development across Africa.