The seven inter International Monetary Fund-described advanced economies, codenamed G7, has committed $251m to boost access to finance for female entrepreneurs in Africa.
According to the G7, the funding will be provided through Affirmative Finance Action for Women in Africa, which is championed by the African Development Bank.
French President Emmanuel Macron disclosed this during a press conference at the G7 Summit in Biarritz, France.
“I am particularly proud, as the current G7 president, that the programme we are supporting today, the AFAWA initiative, comes from an African organisation, the AfDB, which works with African guarantee funds and a network of African banks,” he said.
On his part, AfDB President, Akinwumi Adesina, said, “This is a great day for African women. Investing in women entrepreneurs in Africa is important because women are not only Africa’s future; they are Africa’s present.
“Currently, women operate over 40 per cent of SMEs in Africa, but there is a financing gap of $42bn between male and female entrepreneurs. This gap must be closed, and quickly.
“This financing effort for women is the most significant in the continent’s history.”
According to a statement by the AfDB, AFAWA aims to raise up to $5bn for African women entrepreneurs and AfDB will provide $1bn.
The G7 consists of France, the United States of America, United Kingdom, Italy, Canada, Germany and Japan.