The Economic Commission for Africa (ECA) and Standard Bank Group, with the support of the Arab Bank for Economic Development in Africa (BADEA), the Motor Industry Retirement Funds (MIRF) and Copartes Pension Fund and the African Union Commission (AUC), have announced the African Women Impact Fund (AWIF) Initiative’s achievement of its first commitment of USD$60 million.
The announcement was made at the inaugural The Global Africa Business Initiative, held from 18 – 19 September during the week of the United Nations General Assembly in New York City.
The existence of gendered stereotypes and racial biases in society have detrimental effects globally. This holds true within the investment space where these prejudices obstruct female entrepreneurship, appointment of women in leadership roles, and empowerment of female fund managers. Of the $69.1 trillion of financial assets under management globally, less than 1.3% are managed by women and people of colour. It is increasingly alarming that only 7% of private equity and venture capital funding is allocated to women-led businesses in emerging markets
The AWIF Initiative’s primary purpose is to overcome the systemic barriers and investor biases in the asset management industry, by enabling and promoting women-owned and women-led funds on the African continent.
The AWIF is an Initiative of the Economic Commission of Africa (ECA) together with its partners: UN Women, the Office of the Special Envoy on Women, Peace and Security of the African Union Commission, and the African Women Leadership Network. It has been established in collaboration with the Standard Bank Group as lead sponsor, MiDA Advisors as key strategic advisor, and RisCura as the investment manager and provider of manager development and support services.
The Initiative has a two-fold agenda of making a commercial impact for investors while empowering women financial leaders to drive growth in Africa. With a bold ambition to raise up to $1 billion over 10 years for women fund managers, who will in turn invest in high-impact sectors and projects across Africa, this first-of-its-kind initiative is well positioned to enable economic stimulus through sustainable and gender-inclusive capital growth opportunities.
These funds will provide capital to existing women owners and women fund managers across different asset classes and African regions. Dr. Sidi Ould TAH Director General at BADEA says: “I believe this fund will accelerate fundraising and capital allocation by female fund managers on a transformative level. It is through barrier-braking initiatives such as these that together, we can create a sustainable and scalable investment environment that drives inclusive growth for all who live in Africa.”
Furthermore, it will give the AWIF Initiative the ability to take a big step forward in realising the United Nation’s Sustainable Development Goals (SDGs) 5 and 8, which target gender equality, decent work, and economic growth, as well as the AU Agenda 2063.
With a $2.5 trillion market opportunity, the African continent has been identified as the most important driver of global business The announcement of the first allocation of funds to the AWIF Initiative will attract and empower many talented female asset managers throughout Africa and set a precedent for a gender-inclusive asset management approach in the future.
