The African Development Bank Group (AfDB), in collaboration with the African Guarantee Fund (AGF), has initiated the Affirmative Finance Action for Women in Africa (AFAWA) initiative series to facilitate financing for women entrepreneurs in Nigeria and other African countries. During the 5th series event in Lagos, Nigeria, the Minister of Finance, Mr. Wale Edun, highlighted collateral and interest rates as major challenges limiting access to credit for women-owned or led businesses.
According to Edun, despite funds being made available by banks, the inability to access them is primarily due to challenges related to collateral and interest rates. He emphasized the need to address these issues and collaborate with banks to ensure that the funds are effectively utilized. Edun stressed the importance of women’s full and equal participation in the economy, stating that it is not only a matter of social justice but also one of economic parity.
AfDB’s Vice President for Agriculture, Human & Social Development, Dr. Beth Dunford, acknowledged the significant opportunity for scale in Nigeria, highlighting that micro, small, and medium-sized enterprises (MSMEs) constitute more than three-quarters of Nigeria’s workforce. Dr. Dunford emphasized the potential impact of empowering women entrepreneurs and promoting their active participation in the economy.
The AFAWA initiative aims to unlock financing for women entrepreneurs and address barriers such as limited access to credit and financial resources. By fostering collaboration and addressing key challenges, the initiative seeks to promote economic empowerment and gender equality in the business and financial sectors.
