The Affirmative Finance Action for Women in Africa (AFAWA) is an initiative poised to change trade in Africa, specifically for the 70% of women entrepreneurs in the informal sector, according to the African Development Bank (AfDB).
On Sunday August 25, the AfDB announced $300 million funding for AFAWA on the sidelines of the G7 Summit in Biarritz. G7 countries approved a loan contribution of $251 million towards the initiative with France alone contributing $135 million.
AFAWA is a risk sharing initiative aimed at closing the $42 billion financing gap between male and female entrepreneurs.
It was launched by African Heads of State back in 2016 in Lusaka, Zambia and then entrusted to the AfDB. The pan-African bank hopes to raise credit of up to $1 billion per year for the next five years to support women entrepreneurs through the initiative.