The global annual deficit in spending on women’s empowerment and gender equality is a staggering USD 360 billion, as reported by the UN Women’s Gender Snapshot 2023. Bringing it closer home, the African Development Bank estimates that African women entrepreneurs face a USD 42 billion gender financing gap across business value chains, including USD 15.6 billion in agriculture alone.
In 2023, the prominence of the three Cs—climate, crisis, and conflict—was undeniable. According to the United Nations, this triple crisis has pushed an additional 75 million individuals into dire poverty since 2020. If left unaddressed, this trend could result in over 342 million women and girls living below the poverty line by 2030, underscoring the urgent need for immediate action. By closing the gender pay gap, supporting women-owned businesses, and providing equal opportunities, we create a more robust and dynamic economy.
In Sub-Saharan Africa, the need to invest in women is now more crucial than ever. Women constitute 50.2 percent of the population and have a remarkable potential to contribute to the continent’s development. AECF (Africa Enterprise Challenge Fund) recognizes this and actively supports women’s empowerment in the region through Small and Medium Enterprises (SMEs), which catalyze positive change. SMEs empower women and fortify livelihoods across diverse dimensions – from individual prosperity to the cohesion of communities.
Acknowledging the undeniable truth that empowering women is a moral imperative and a strategic investment in advancing society is essential. International Women’s Day is a timely reminder that to accelerate progress, we must wholeheartedly commit to investing in women and fostering an environment where their talents, skills, and ambitions can flourish. AECF has had the privilege of working on women’s economic empowerment over the last few years, but even more intensely and intentionally over the last four. Our USD 34 million Investing in Women (IIW) programmes draw from learnings on the gender financing gap and an eagerness for women businesses to be empowered and seen from a creditworthiness perspective.
We are working across five geographies, designing interventions that enhance opportunities for women, addressing their hunger for meaningful employment and a craving for representation and engagement within different agricultural value chains. On one hand, related to improving the economic empowerment of women-owned enterprises in Kenya’s blue economy and, on the other, increasing the adoption of gender-sensitive climate-smart agricultural practices in South Sudan. IIW strives to give women the opportunity to meaningfully participate and increase their incomes, solving for access to finance and productive assets. Recognizing that asset ownership continues to hold them back, particularly with credit access being a significant challenge, there is a need for alternative financing vehicles that do not demand collateral.
Through the Investing in Women in the Blue Economy in Kenya programme, Rio Fish, a woman-owned enterprise based in the Lake Victoria region, is now raising further capital beyond project financing. Their model enhances production capacity by having more women own fish cages, allowing them to access input and training in best practices for optimal production while creating a ready market for their products. We need to have this repeated – and at scale. By so doing, we can realize the dream of increased productivity and income; increased incomes mean diversified livelihoods and diversified livelihoods mean resilience. We are elevating women beyond training, and it starts with their access to financing, productive assets, climate-smart technology, and the ability to shield themselves. They now have leadership opportunities to make decisions; they are at the table – markers of progress.
As the world marks International Women’s Day in 2024 under the theme “Invest in women: Accelerate progress,” concrete actions are imperative. Governments, businesses, and individuals must prioritize investments that empower women in education, healthcare, and economic opportunities. Accelerating progress requires comprehensive and concerted efforts to break systemic barriers and create a world where women can fully realize their potential.
When women are equipped with the tools to succeed, entire communities and nations reap the benefits. Studies consistently show that women typically reinvest up to 90 percent of their income in their family and community’s health, nutrition, and education – compared to 40 percent for men. Investing in women can transform societies as a morally right action and a smart strategy for sustainable economic growth. Moreover, investing in women means dismantling barriers that perpetuate discrimination and injustice. It means challenging societal norms that limit opportunities based on gender.
Initiatives that empower women entrepreneurs have shown promising results across the continent. Africa boasts the world’s highest rate of female entrepreneurship, at an estimated 24%. Female entrepreneurs in Africa have become role models, achieving personal success and creating a ripple effect that can significantly impact the continent’s economic landscape.
As we journey towards gender equality, let us embrace women’s potential and invest in their dreams, realizing that their success is intricately linked to the success of Africa as a whole. While many only pay lip service to investing in women, few are willing to embrace the challenges and uncertainties accompanying it. It takes more effort and can take longer, but do we have a choice?
