AfDB to support women businesses in Africa with $5bn

The President of African Development Bank (AfDB), Dr. Akinwumi Adesinais has said that the bank was mobilising $5 billion for African women businesses in a bid to unleash the business potential of women in the continent.

Adesina said the Bank’s Affirmative Finance Action for Women in Africa (AFAWA) was now working at scale and has already disbursed over $425 million last year to support women businesses.

In a speech delivered at the opening of the 35th African Union Summit in Addis Ababa, Ethiopia, Adesina said that $500 million incentives were aimed at supporting women as part of measures to ensure thriving women-owned businesses across the continent.

The full text of the speech which was posted by presidential spokesman, Femi Adesina, on his social media platform on Wednesday, reads:

“Your Excellencies, to unleash the business potential of women, the Bank’s Affirmative Finance Action for Women in Africa is mobilizing $5 billion for women’s businesses.

“AFAWA is now working at scale. Over $425 million was disbursed in 2021 to banks for lending to women businesses. This year, we will disburse $500 million for women’s businesses. Our vision is clear: When women win, Africa wins!,” Adesina told his audience.

He also disclosed that the Africa Investment Forum, established by the AfDB and its partners, has helped to secure investment interests worth more than $78 billion.

This spectacular level of interest, he said, includes a $24 billion transaction for the liquefied natural gas project in Mozambique.

“We are proud that that this project will make Mozambique the third-largest producer of liquified natural gas in the world.

“The project experienced challenges from insecurity, but thanks to your collective leadership, all is now back on track,” he said.

Adesina also told the gathering of heads of state from African countries and diplomats that the Bank was investing heavily in renewable energy.

“This includes the world’s largest concentrated solar power system in Morocco and the Lake Turkana energy project, the largest windfarm in Africa.

“Together with Africa50, we have co-financed the 3,000 MW Ben Ban solar power project in Egypt. The Bank is also implementing a $20 billion Desert-to-Power initiative to develop 10,000 MW of solar power for the Sahelian zone of Africa, in order to provide electricity for 250 million people. This will become the largest solar zone in the world.

Your Excellencies, Africa faces a huge challenge with energy transition, and with climate change. The Bank is working to establish an African Just Energy Transition Facility that will support transition from coal and heavy fuel oil into clean energy.

However, Africa will need an energy mix that includes natural gas, to ensure stability of its energy systems, power industries, and ensure competitiveness.