In major effort to empower African women entrepreneurs, the European Investment Bank (EIB) has announced a $1.1 billion lending program dubbed as SheInvest at the Africa Investment Forum 2019. In doing so, the EIB expects the gender-lending initiative to allow women to play a more active role in African economies.
The forum took place in Johannesburg, where hundreds of investors, development partners and wealth funds gathered from 11 to 13 November for the continent’s premier marketplace. EIB VP Ambroise Fayolle talked about the aim for female entrepreneurs to also gain business skills from their new initiative.
In Southern Africa, EIB also confirmed a program to support access to finance by entrepreneurs across Malawi and a new scheme to finance smallholders in the country to be launched early next year.
Patricia Hamisi, a Senior Manager at Malawi’s FDH Bank, says the money will help the bank enhance its long-term credit to small businesses owned by women. “The agreement comes with technical assistance which will help the bank enhance its trade financing,” she said.
Having supported investment in Africa for more than 50 years, EIB happens to be the lending arm of the European Union. Last year, it provided a record €3.3 billion to African countries, with more than half the funds being pumped into the private sector. Fayolle, also revealed that the bank has signed three further agreements to boost sustainable development on the continent.
Another deal that was signed during the second round of Africa Investment Forum was to see the African Trade Insurance increase its membership in Western and Southern Africa. This increased insurance coverage is expected to attract more investment to the continent.
