IVORY COAST, 03 August 2021: The African Development Bank (AfDB) says it will provide USD 150 million to support women in the agriculture sector before the close of the year.

AfDB will provide a road map for gender interventions in the next four years, focusing on the agriculture sector where women have the highest entrepreneurial potential.

By the end of 2021, the Bank is expected to have provided close to USD 500 million of which USD 150 million will benefit women in the agriculture sector, and to work with public and private sector partners to develop alternative financial models to increase the ability of women farmers to access the financing and skills they need to grow sustainably.

The Bank, through its Affirmative Finance Action for Women in Africa (AFAWA) initiative, has committed up to USD 5 billion to finance women’s businesses on the continent by 2026. This is already proving successful. For example, in Ghana a USD 20 million AFAWA Financing Climate-Resilient Agricultural Practices project is expected to benefit 400 women-led micro, small and medium enterprises through a line of credit from Ecobank Ghana. This support comes with technical assistance and training in climate-resilient agricultural practices.

Beth Dunford, AfDB vice-president for agriculture, human and social development, reiterated the institution’s commitment to closing the financing gap for women and warned of the impact of gender inequality on food systems in Africa.

“Closing gaps in economic opportunities is not only essential for women’s empowerment but African economies, particularly for GDP growth, poverty reduction, and structural transformation for sustainable development,” she added.

She also said providing access to finance for women-owned small and medium enterprises in Africa is an important component of the bank’s strategy to establish a conducive business environment for women entrepreneurs to thrive.

“In sub-Saharan Africa, the financing gap for African women in agricultural value chains is estimated at USD 15.6 billion.”

It explained that women play a pivotal role in agriculture and agribusiness and require more robust and responsive regulatory and policy frameworks for countries to benefit from their contributions.

The UN food systems summit is scheduled to hold in New York in September 2021.

In July, AfDB also approved a USD 50 million loan facility to First City Monument Bank (FCMB) to support local enterprises and women-led businesses.