The African Development Bank (AfDB) has announced its grand plan to provide $150m to finance women in the agricultural sector in a move to close the gap in financing for women in Africa by the end of 2021.
In a recent press release, the Bank stated that the fund would help women in agriculture partner public and private sector to develop alternative financial models to increase the ability of women farmers to access the financing and skills they need to grow sustainably.
It said: “Indeed, in sub-Saharan Africa, the financing gap for African women in agricultural value chains is estimated at $15.6 billion where women play a pivotal role in agriculture and agribusiness, and require more robust and responsive regulatory and policy frameworks for countries to benefit from their contributions.
“Providing access to finance for women-owned small and medium enterprises in Africa is an important component of the Bank’s strategy to establish a conducive business environment for women entrepreneurs to thrive.”
With its Affirmative Finance Action for Women in Africa (AFAWA) initiative,. the AfDB has committed up to $5 billion to finance women’s businesses on the continent by 2026.
The statement affirmed that “This is already proving successful. For example, in Ghana a $20 million AFAWA Financing Climate-Resilient Agricultural Practices project is expected to benefit 400 women-led micro, small and medium enterprises through a line of credit from Ecobank Ghana. This support comes with technical assistance, and training in climate-resilient agricultural practices, .”
