Africa’s Women Entrepreneurs Unlock New Opportunities with AFAWA
A financial revolution is sweeping across Africa, empowering women entrepreneurs like never before. The African Development Bank Group’s Affirmative Finance Action for Women in Africa (AFAWA) initiative is bridging the $49 billion financing gap faced by women-led businesses, unlocking new opportunities for growth and development.
Traditionally, African women have faced significant barriers in accessing finance, often due to societal norms that limit their ownership of assets like land or savings needed as collateral. Despite these challenges, research shows that women entrepreneurs in Africa are adept at running their businesses and are less likely to default on loans than their male counterparts.
Recognizing this untapped potential, AFAWA is working with financial institutions to create financing tailored to the unique needs of women-run businesses. The initiative not only provides much-needed capital but also offers capacity-building training to help women entrepreneurs scale up their operations. Governments are also being encouraged to support more gender-inclusive policies.
In less than five years, AFAWA has approved $2.5 billion in financing, with over $1.2 billion already disbursed to more than 24,000 women entrepreneurs across 44 African countries. These funds are distributed through a network of 185 partner financial institutions.
Take, for example, Elisabeth Tano from Côte d’Ivoire. In 2016, she founded a coffee roasting company in Abidjan but struggled to expand her business. With AFAWA-backed financing exceeding $500,000, she increased her turnover by 20% in just one year and grew her team by 30%, creating more jobs for youth and women in her community. Today, her brand, Café Tano Torrefaction, distributes coffee products across Côte d’Ivoire, Mali, and Burkina Faso.
From innovating in medical technology to providing essential services in remote areas, women benefiting from AFAWA are leading diverse and impactful businesses. On International Women’s Day, themed “For ALL women and girls: Rights. Equality. Empowerment,” it’s crucial to recognize that empowering women financially is key to developing stronger businesses, communities, and economies.
Investing in women is not just about fairness—it’s a catalyst for growth and development. As initiatives like AFAWA continue to support and champion women’s entrepreneurship, Africa moves closer to a future where women have equal opportunities to thrive.
