Affirmative Finance Action for Women in Africa (AFAWA), an African Development Bank women's initiative, recently reached $1 billion in loan approvals for African women business owners with the intention of addressing the continent's wage disparity between male and female farmers.

This announcement follows the bank's memorable summit last week to address Africa's growing food security problems.

The Dakar 2 Africa Food Summit, co-hosted by the Africa Development Bank and the Government of Senegal, drew 34 heads of state and government, more than 70 ministers, farmer representatives from the corporate sector, and development partners.

During the event, Dr. Beth Dunford, the Bank's vice president for agriculture, human, and social development, stated that he is extremely proud of AFAWA's financing achievement and that "AFAWA's benchmark serves as a reminder that when we invest in Africa's food systems, we must also invest in Africa's women businesses."

According to Malado Kaba, Director of the Bank's Gender, Women, and Civil Society Department, AFAWA-approved lending to women-led small and medium-sized enterprises will reach $1.051 billion by the end of December 2022. AFAWA's approved lending reaches 27 countries and 56 financial institutions, with $135 million going to women in agriculture. AFAWA's financing instruments have already benefited 4,115 women business owners. And she added that this is only the start.

The gender disparity in Africa's agricultural sector is stark, owing to the fact that women make up the majority of the workforce while controlling a small portion of the wealth generated.

To that end, AFAWA was established, and over the last two years, the initiative has contributed to giving female African farmers more autonomy over their agricultural careers by increasing the number of investments made in women-owned small and medium-sized businesses.

AFAWA also collaborates with Ecobank on the "Financing Climate Resilient Agricultural Practices in Ghana" project. The project received $20 million from the Green Climate Fund and $5 million from Ecobank Ghana as co-financing to help farmers bridge the working capital gap.

Broadly speaking, the organization is working to encourage, empower, and educate African female agricultural players, with the additional goal of unlocking $5 billion in lending for women by 2026.