Affirmative Finance Action for Women Entrepreneurs in Africa (AFAWA)
The Affirmative Finance Action for Women in Africa (AFAWA) is a flagship initiative by the African Development Bank Group (AfDB) aimed at closing the $42 billion financing gap faced by women entrepreneurs across Africa. It seeks to unlock up to $5 billion in financing for women-led businesses by 2026, promoting gender-inclusive finance and empowering women to participate in Africa’s economic development fully by targeting three pillars: Access to Finance: Utilizes AfDB’s financial instruments like lines of credit, trade finance, and equity investments. Introduced the AFAWA Guarantee for Growth (G4G), a pan-African risk-sharing mechanism to reduce collateral requirements and unlock up to $3 billion in financing for around 27,000 women-led businesses Technical Assistance: Provides advisory services to financial institutions. Offers training and mentoring to women entrepreneurs to improve business productivity and financial literacy Enabling Environment: Works with governments and regulators to reform policies that hinder women’s access to finance. Supports legal and regulatory changes to foster a more inclusive financial ecosystem
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