This is a huge chance for African women entrepreneurs to benefit from funds to grow their startups. The European Investment Bank (EIB) has launched SheInvest, a new initiative to boost gender equality and female economic empowerment. Female entrepreneurs previously neglected by traditional funding methods, such as VC or private equity will now have to dust up their pitch decks and begin to apply for the fund. European Investment Bank says SheInvest will unlock investments to promote gender equality and fuel female entrepreneurs in Africa.
“Unlocking the potential of women is key to boosting Africa’s economic growth. In several African countries many women still lack access to basic services and are excluded from the financial and labour markets, making them unable to contribute fully to their continent’s development. As the bank of the European Union, we are committed to deliver on gender equality and are proud to be backing this important mission through the new SheInvest initiative, ”Ambroise Fayolle, EIB Vice-President in charge of development operations, said:
Here Is All You Need To Know
- The announcement was made simultaneously at the Africa Investment Forum in Johannesburg (and at the EIB headquarters in Luxembourg) where hundreds of investors, development partners and wealth funds have gathered from 11 to 13 November for the continent’s premier marketplace.
- The European Investment Bank (EIB)’s plan is to see SheInvest mobilise EUR 1 billion of investment that can benefit millions of women across Africa with better access to finance and by making sustainable infrastructure services and products work for them.
“This initiative aims to promote female entrepreneurship,” said Fayolle, noting that female entrepreneurs will also gain business skills from the initiative.
Is The European Investment Bank Reliable Or Just Another White Elephant Promise?
The European Investment Bank has previously built experience in northern and sub-Saharan African countries as well as in gender focused lending.
The EIB is the lending arm of the European Union. The EIB has supported investment in Africa for more than 50 years. Last year, it provided a record €3.3 billion to African countries, with more than half the funds being pumped into the private sector.
Through this fund, the EIB will be looking to step up efforts to further invest in projects, sectors and markets that have a transformative effect on gender equality and can increase the capacity of women and girls to participate in the economy and labour market.
In addition, dedicated Technical Assistance will provide capacity building and mentoring to women entrepreneurs so that they can better access finance and will support intermediaries in designing financial products tailored to their needs.
Who Will Get The Fund
Here is a break-down of the target of the fund:
- The fund will be targeting women-led startups providing innovative digital solutions and financial products to reach women and girls who are often excluded from such services. This should increase their economic opportunities and social inclusion.
- The initiative will also be looking at social impact startups or initiatives led by women in climate change advocacy. By doing this, SheInvest will be acknowledging the key role played by women in climate action and at the same time addressing their vulnerability to climate change impacts. Investment will therefore target climate and gender responsive infrastructure projects, such as projects enhancing women’s access to water, clean, reliable and affordable energy, as well as sustainable public transport.
Read also: New $6.8 Million VC Fund Launched For Southern Africa Women-led Startups
How To Access The SheInvest Fund
Investment under this initiative will be guided by the 2X Challenge criteria (http://bit.ly/2NIs5w1), that the EU Bank adopted to increase the impact of its financing for gender equality and women economic empowerment in developing countries.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world