The World Bank Group has announced $1 billion fund for Women Entrepreneurs Finance Initiative in Nigeria and other developing countries.
The fund, which was launched at the G20 leaders’ summit recently, will help women in developing countries gain increased access to the finance, markets and networks necessary to start and grow a business.
The bank said in a statement that the fund called, Women Entrepreneurs Finance Initiative, would enable more than $1bn of financing to provide technical assistance and invest in other projects and programmes that support women and women-led Small and Medium Enterprises in the World Bank Group client countries.
It stated that the goal of the facility was to leverage donor grant funding, which is currently over $325m, to unlock more than $1bn in international financial institutions and commercial financing by working with financial intermediaries, funds and other market actors.
The World Bank said, “We-Fi will work to break down barriers to financial access and provide complementary services such as capacity building, access to networks and mentors, and opportunities to link with domestic and global markets, as well as improve the business environment for women-owned or women-led SMEs in supply chains across the developing world.
“One of the major constraints limiting female-led enterprises is access to financial services. Nearly 70 per cent of women-owned SMEs in developing countries are either shut out by financial institutions or are unable to receive financial services on adequate terms to meet their needs.”
According to the bank, the United States initiated the idea for the facility and will serve as a founding member along with other donor countries like Germany, Australia, Canada, China, Denmark, Germany, Japan, Netherlands and Norway, among others.
Others donor countries are Saudi Arabia, South Korea, United Arab Emirates and the United Kingdom.
The United States President, Donald Trump, said, “This incredible facility will have a significant impact on women’s economic development around the world.
“It will help increase opportunities and economic growth, while addressing unique barriers women entrepreneurs face. I am proud the United States is helping to lead support of this unprecedented initiative.”
The President, World Bank Group, Jim Yong Kim, said, “Women’s economic empowerment is critical to achieve the inclusive economic growth required to end extreme poverty, which is why it has been such a longstanding priority for us.
“This new facility offers an unprecedented opportunity to harness both the public and private sectors to open new doors of opportunity for women entrepreneurs and women-owned firms in developing countries around the globe.”
Commenting on the initiative, the Japanese Prime Minister, Shinzo Abe, said, “Women’s active participation in society is one of the pillars of Abenomics. Women’s empowerment and leadership will diversify and revitalise organisation and societies. This facility embodies such belief in developing countries, and is promising initiative to achieve a society where women shine.”
