Share
Gender finance initiative sets $15bn target to empower women
An initiative of the Development Finance Institutions of the G7 nations, plans to raise $15 billion dollars by the end of 2022 for gender-lens investment after surpassing its original target by 100 per cent. The initiative called the 2X Challenge, aims to channel more capital towards investments that empower women in developing countries. Jen Braswell, Director of Value Creation at the CDC and the Co-chair of the 2x Steering Committee joins CNBC Africa for more.
Fri, 11 Jun 2021 13:27:44 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The 2X Challenge initiative aims to raise $15 billion by 2022 for gender-lens investments, surpassing its original target by 100% and highlighting the importance of closing gender gaps in finance globally.
- Investments from the 2X Challenge are focused on the private sector in emerging markets, particularly in Africa, to address the unique challenges women face in accessing financial services and products.
- The initiative has significantly impacted women in Africa over the past two years, with nearly $3 billion being invested in various sectors and businesses, leading to the emergence of more female-led gender lens funds targeting underserved segments of the economy.
An initiative of the Development Finance Institutions of the G7 nations, known as the 2X Challenge, has set an ambitious target to raise $15 billion by the end of 2022 for gender-lens investments. This initiative aims to channel more capital towards investments that empower women in developing countries. The 2X Challenge has already surpassed its original target by 100%, showcasing a strong commitment to closing the gender gaps that exist in finance worldwide. Jen Braswell, the Director of Value Creation at the CDC and the Co-chair of the 2X Steering Committee, joined CNBC Africa to discuss the impact of this initiative and its significance in the current global economic landscape. Braswell highlighted the importance of intentional investment in women in the private sector to increase women's participation, access to income, and agency.
The 2X Challenge was launched at the G7 Summit in Canada in 2018 with a goal to mobilize $3 billion by the end of 2020. However, the initiative far exceeded this goal by more than double, indicating a strong momentum in the gender finance space. The aftermath of the COVID-19 pandemic has further emphasized the need to prioritize women's empowerment in the economic recovery process. According to Braswell, any growth in the rebuild phase will be meaningless if women are left behind.
The funds raised through the 2X Challenge are being directed towards investments in the private sector, particularly in emerging markets where women face significant challenges in accessing finance. In Africa, where women represent a substantial percentage of entrepreneurs, the initiative is focusing on providing financial services and products tailored to the specific needs of women. Investments in sectors such as renewables, the care economy, and the digital economy are seen as key opportunities to support women in various aspects of their lives and businesses.
In Africa, the 2X Challenge has made significant strides over the last two years, with nearly $3 billion being invested in the continent between 2018 and 2020. This investment has spanned across different sectors, financial instruments, and businesses, showcasing the diverse impact of gender-lens investments. The initiative has also led to the emergence of more female-led gender lens funds that target segments of the economy not traditionally reached by capital. These funds are focusing on smaller businesses and those serving women consumers, contributing to a more inclusive and supportive financial ecosystem for women across the continent.
SIGN UP FOR OUR NEWSLETTER
DAILY UPDATE
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.