IFC, AfDB sign MoU to promote women investments

The International Finance Corporation (IFC) has recently signed a memorandum of understanding with the African Development Bank (AfDB) to promote investments that benefit women in business, particularly in the agriculture sector. The IFC, as a global development institution, has a wealth of experience in supporting women entrepreneurs across the globe, and this partnership aims to leverage that expertise to empower women in Africa. The Vice President and Treasurer of the IFC, Jingdong Hua, sat down with CNBC Africa to discuss the details of this transformative deal. The goal of the memorandum of understanding is to support the AfDB's affirmative action to finance women in agriculture initiative. This initiative was launched by President Akinwumi Adesina of the AfDB during last year's annual meeting with an ambitious goal of $3 billion specifically allocated to support women entrepreneurs and smallholder farmers in agribusiness. By collaborating with the IFC, the AfDB aims to tap into the IFC's vast knowledge and success in supporting women entrepreneurs worldwide. Hua highlighted the challenges that women entrepreneurs face, particularly in the SME space. He pointed out that women-owned or partially owned enterprises make up less than 40% of SMEs, despite women constituting half of the population. The memorandum of understanding between the IFC and the AfDB seeks to address these disparities and unlock the full potential of women entrepreneurship in Africa. One of the key focuses of the partnership is to provide targeted financing, training, and capacity building to women entrepreneurs in the agriculture sector. Agriculture is a critical sector for women as they represent 60% of the workforce in this industry. By empowering women in agribusiness, the IFC and the AfDB aim to drive economic growth, create employment opportunities, and improve livelihoods for millions of women and their families. Hua emphasized the importance of supporting women entrepreneurs in accessing finance, as traditional commercial banks often hesitate to lend to women-owned businesses. By providing tailored support and encouragement to commercial banks, the IFC and the AfDB aim to bridge this gap and enable women entrepreneurs to thrive and expand their businesses. Furthermore, Hua drew parallels between the experiences of women entrepreneurs in Africa and those in countries like China, India, and Latin America. The IFC has actively worked with women entrepreneurs in these regions, demonstrating its commitment to empowering women globally. By sharing these experiences with the AfDB, the IFC aims to enrich the partnership and enhance the impact of the initiative on women in Africa. In terms of lessons that Africa can learn from India, Hua highlighted the importance of developing local currency capital markets. In India, women entrepreneurs have better access to rupee financing due to the developed capital market. By enabling smallholder women entrepreneurs in Africa to access local currency financing, they can mitigate foreign exchange risks and focus on growing their businesses sustainably. Overall, the partnership between the IFC and the AfDB marks a significant step towards empowering women entrepreneurs in Africa, particularly in the agriculture sector. By leveraging the IFC's expertise and experiences, the initiative aims to unlock the full potential of women in business, drive economic growth, and create a more inclusive and equitable society.