Global Gender Summit: Phillipe Lacoste: There is more political will to lend more to women

French President Emmanuel Macron, along with other G7 leaders, recently approved a $251 million package in support of the African Development Bank's Affirmative Finance Action for Women in Africa (AFAWA) initiative. This significant commitment is aimed at promoting women's access to financial services and ultimately empowering women economically across the continent. CNBC Africa's Kenneth Igbomor had an insightful conversation with Phillipe Lacoste, the Director for Sustainable Development at the French Ministry of Europe and Foreign Affairs, to delve into the importance of this initiative for Africa. Lacoste shared that France has been a long-standing supporter of the AFAWA initiative, recognizing the critical role it plays in facilitating women's access to financial services. He mentioned that during the G7 countries' presidency, France spearheaded efforts to secure support for the initiative, resulting in an impressive financial commitment of $250 million. With half of the funding coming from French sources, this substantial contribution underscores France's dedication to advancing women's economic opportunities in Africa. The gathering in Kigali provided a platform to assess the progress of the AFAWA initiative and garner additional support from other countries. Lacoste emphasized the importance of addressing gender equality constraints, highlighting that promoting women's economic autonomy is a pivotal aspect of France's public policies and development assistance strategies. By integrating women into the formal sector and enhancing their economic independence, the initiative aims to unlock new opportunities for women across Africa. One of the key takeaways from Lacoste's reflections on the summit was the palpable political will to translate rhetoric into action. He noted a collective commitment to empower women through tangible initiatives, such as incentivizing financial institutions to increase lending to women. One of the significant challenges faced by women in accessing financial services is the lack of collateral. In response, the initiative has introduced mechanisms to mitigate risks for banks, thereby enabling them to offer lower interest rates to female borrowers and expand financial inclusion. Lacoste's insights shed light on the transformative impact of the AFAWA initiative and the broader efforts to advance gender equality and women's economic empowerment in Africa. With France's substantial financial backing and a shared commitment from international partners, the initiative is poised to drive meaningful change and create new opportunities for women across the continent. In conclusion, the $250 million commitment underscores a collective commitment to advancing women's economic empowerment in Africa, signaling a new chapter in the drive for gender equality on the continent.