ADDIS
ABABA, Ethiopia, February 10th, 2020,-/African Media Agency (AMA) /- African leaders are putting women front and
center of efforts to drive the continent’s economic growth through a
game-changing fund that invests in women fund managers and also provides
technical assistance.
The
launch of the African Women Leadership Fund (AWLF) will provide capital to both
first time and experienced fund managers in support of UN Sustainable
Development Goals 5 (Gender Equality) and 8 (Decent Work and Economic Growth),
and African Union Agenda 2063.
The
ground-breaking partnership, formally signed at the weekend in Addis Ababa
between the United Nations Economic Commission of Africa (ECA) and Standard
Bank Group, will be transformational in breaking down structural barriers to
inclusive investing in Africa.
Over
$20 million was raised for the fund on Saturday that has a current goal of $100
million. President Paul Kagame of Rwanda was instrumental in leading the way,
pledging $500,000. Senegal’s President Macky Sall also committed $500,000.
South African President Cyril Ramaphosa pledged to contribute to the fund. The
private sector participants pledged the rest.
Prime
Minister Justin Trudeau of Canada pledged $10 million to the African Union to
boost gender parity. Norway Prime Minister Erna Solberg pledged $8 million to
AU initiatives. A portion of these resources will be earmarked for the women’s
initiative.
Among
the world leaders who witnessed the official launch of this innovative impact
investment fund were UN Secretary-General, Antonio Gutteres, African Union Commission
Chairperson, Moussa Faki Mahamat, Ethiopian President Sahle-Work Zewde. Former
Liberian President Ellen Johnson Sirleaf was also in attendance, as were a
number of former African female heads of state.
“We
are turning the tables and making women the decision-makers of investable money
in Africa. We want women to be on the supply side of money, not only on the
demand side,” said Dr. Vera Songwe, UN Under Secretary General and Executive
Secretary of ECA. A key goal of the fund is to empower women financial leaders
who will drive economic growth, job creation, and create prosperity.
In
Africa women-owned funds and businesses struggle due largely to lack of
successful fundraising, insufficient exposure to systems and procedures, and
lack of track records, among others. They also contend with gender-based social
expectation, resistance to women in leadership roles and lack of a support
network. The fund will empower Africa’s women by giving them access to
financial resources and investment management expertise.
Sola
David-Borha, Chief Executive of Africa Regions at Standard Bank Group, says the
fund aligns with the Bank’s purpose to drive Africa’s growth and “presents an
opportunity for Standard Bank to leverage our footprint and expertise on the
continent, and the relevant experience of our asset management arms, Melville
Douglas and STANLIB Multi-Managers, to build Africa’s economies. Africa is our
home, we drive her growth”.
Women
fund managers will receive a deployment of capital, and subsequently invest in
majority female-owned businesses. Even though the fund is sector agnostic,
priority sectors will be education, manufacturing, healthcare, clean energy and
agriculture. Additionally, technical assistance for fund managers and
entrepreneurs will be offered through the initiative. This ranges from building
capacity, direct mentoring to leveraging technology in health and education.
Songwe
emphasized “The goal here is to give women-led financial investment activities
a huge injection of jet fuel to bear out the proven positive correlation
between gender balance, higher financial returns and developmental impact.”
In
his remarks, Secretary-General Gutteres said, “power is not usually given, it
must be taken.”
