This archive report was first published on 2 December 2019.
Gender Financing Gap in Africa: A Persistent Challenge ¶
Published on December 2, 2019, a forum in Kigali, Rwanda, brought together stakeholders from various multilateral development banks, financial institutions, and the private sector to discuss the gender financing gap in Africa.
Lenders were urged to advance more credit to women entrepreneurs to seal the existing finance gap. The forum highlighted the need for lenders to overcome the perception that women entrepreneurs are high-risk borrowers.
Dr. Jennifer Blanke, African Development Bank Vice President for Agriculture, Human and Social Development, emphasized the benefits of banking on women entrepreneurs. 'We know that women are a good bet since they pay back and run excellent businesses, yet they are not getting financed. An important step is for multilateral development banks to offer credit guarantees to commercial banks as an incentive to intensify their lending to women entrepreneurs.'
Experts acknowledged the progress made in bridging the gender inequity gap in financing but faulted the slow pace in the effort. According to World Economic Forum data, it will take at least 200 years to close the global pay gap between men and women if the current rate of progress is maintained.
Panelists at the summit discussed how financial institutions and multilateral development banks are employing innovation to expand women's access to finance. Increasing women's financial literacy was identified as pivotal to closing the gender gap. The adoption of digital spaces and online tools for financial services was also suggested as a way to grow businesses owned by women.
John Wilson, chief operating officer of Equity Bank, emphasized the importance of making lasting human connections with customers in bridging the gap. Barbara Rambousek, Director for Gender and Economic Inclusion at the European Bank for Reconstruction and Development, noted that closing the gender gap is not about corporate social responsibility or charity, but about business development.
