French President Emmanuel Macron, as the current G7 president, made the announcement to reporters on Monday.
He said the AFAWA initiative, comes from an African organization, the African Development Bank, which works with African guarantee funds and a network of African banks.
The risk-sharing mechanism used by AFAWA (Affirmative Finance Action for Women in Africa) is a practical approach to international commitments.
It is a direct response to the demand by women to ease access to financing, specifically on the need to establish a financing mechanism for women’s economic empowerment.
“African women are the backbone of the continent. I’m thrilled to bring their voice to the G7. AFAWA is essential for our continent,” said Beninese artist Angelique Kidjo, a guest at the press conference in her role as program ambassador.
The AFAWA initiative, backed by the G7 nations, is based on three fundamental principles, the first being to improve women’s access to financing through innovative and adapted financial instruments, including guarantee mechanisms to support women entrepreneurs.
AFAWA aims to raise up to $5 billion for African women entrepreneurs. The African Development Bank will provide $1 billion financing.