Development Finance Institutions (DFIs) partner to bolster women entrepreneurs in East Africa
2X Challenge Members inaugurate competition to empower women entrepreneurs in East Africa
Nairobi, Kenya – July11, 2019 – Leading development finance institutions(DFIs) including FinDevCanada, Commonwealth Development Corporation Group (CDC) of the United Kingdom, Proparco of France and the Overseas Private Investment Corporation (OPIC) of the United States along with the Mastercard Foundation, officially launched the 2X Invest2Impact – Business Competition today. The purpose of the competition is to provide access to funding to help develop women-led initiatives in East Africa. This major new opportunity will support women entrepreneurs seeking to make a positive impact on local economies and are strong candidates for external investment.
While there are many other business competitions concentrated on the African continent, as well as women-focused entrepreneurial forums, programs, and initiatives, 2XInvest2Impact will stand out by pinpointing women-owned businesses at the growth stage, poised for investment capital. 2XInvest2Impact will provide them with mentorships, business development services, visibility and the opportunity for funding.
The goals of 2X Invest2Impactare to:
- Directly reach women-ownedbusinesses that may otherwise face barriers in accessing investment capital;
- Contribute to the community of women business owners and leaders in the region;
- Gather and share learnings on women in business and gender-lens investing;
- Increase visibility and momentum for gender-lens investing;and
- Pilot an investment prospecting model that could be replicated in other regions.
The current project focus is on East Africa, specifically Ethiopia, Kenya, Rwanda, Tanzania and Uganda. A total of 100 women participants will be chosen to pursue one of four “tracks”. The competition will be open to the majority of women-owned businesses, with detailed entry criteria on the competition website.
Speaking at the launch, H.E. GracaMachel, called on financial institutions and Governments to empower women. “Empower a Woman and a whole Community will thrive, empowering women benefits everyone and is essential for communities to thrive. Research shows that increasing women’s involvement leads to improved financial management and more sustainable, thriving communities.
She noted that the decision to focus on women entrepreneurs was made because of the significant contribution that they make to their economies. Adding that, these enterprises, if allowed to achieve their full growth potential, can contribute to employment growth, enhanced regional trade, and spur more activity amongst budding entrepreneurs.
“Through our numerous engagements with women across the continent at the GraçaMachel Trust, we have witnessed the rise of African women who are not content running businesses for subsistence purposes only. Some are venturing into sectors that are traditionally male-dominated where their numbers are still small; some are bent on improving their technical knowledge and capacity to tackle even greater challenges impacting the business landscape; and some are engaging in regional trade to maximize their growth potential. The female segment cannot be generalized as ‘niche’ or ‘predictable.’ It is diverse and as this report confirms, has particular needs that require our attention.” Affirmed H.E. GracaMachel.
The competition will bring value to women business owners through four tracks: 2Xcelerate, for women-led business owners, 2Xcapital for SMEs, 2Xcrowd for crowdfunding campaigns and 2Xcatalyze for network building.
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Competition Categories
2Xcelerate is a competition that is open to women-led businesses in participating countries, with a focus on those aligned to the UN Sustainable Development Goals. 25 finalists will compete for cash prizes, recognition at a gala winners’ event and participation in the Invest2Impact funding readiness support program to maximize your chances of funding. This is designed for revenue-positive businesses seeking sizeable investment, beginning at $3m to scale.
2Xcapital is focused on tailored Small-Medium Enterprises (SMEs) growth funding access support. 25 SMEs selected from applicants will benefit from this funding access program, including funding readiness and customized assistance with building investment cases. This stream is designed for smaller businesses suitable for funding under $3m.
2Xcrowd is aimed at providing support for global crowdfunding campaigns. 25 social enterprise and innovation focused businesses will receive tailored support and mentorship to help establish their respective crowdfunding platform. The program will include crowdfunding strategy development, platform fees and ongoing support to achieve an agreed funding target.
2Xcatalyse is meant to facilitate networking and attendance at major industry events. 25 women entrepreneurs will be selected to attend a major international expo or event in their respective sector. Sponsored travel, attendance fees and promotional materials will be provided. The goal is to help women in the health, technology, agriculture and tourism sectors build their client base and making meaningful connections.
The participating members of these four streams will make up the founders of 2Xconnect, an online community dedicated to Africa’s women entrepreneurs. It is designed to support collaboration, leadership, and key business skills. As more participants join, it will be a place to share, support, learn and celebrate the power of East African women business leaders who are positively impacting their communities, countries, continents and the world.
The 2X Challenge
The G7 DFIs – FinDev Canada, the United Kingdom (CDC), the United States (Overseas Private Investment Corporation – OPIC), Italy (Cassadepositi e presiti – Cdp), France (Proparco) and Japan (JBIC and JICA), and Germany (DEG) – established the 2X Challenge at the 2018 G7 Summit in Charlevoix, Québec. There, a commitment to mobilize US $3 billion by 2020 for investment in business activities that will benefit women was agreed upon. As of May 1, 2019, members of the 2X Challenge estimate, an amount in excess of $1 billion already mobilized.
In the year since its announcement, four new member nations have joined the 2X Challenge: The Netherlands (Netherlands Development Finance Company), Finland (Finnish Fund for Industrial Cooperation), Sweden (Swedfund), and Denmark (Investment Fund for Developing Countries).
About the Partners
CDC
CDC is the UK’s development finance institution. Wholly owned by the UK Government, it invests in Africa and South Asia with the aim of supporting economic development to create jobs. CDC has invested in Africa since 1948. CDC takes a flexible approach and provides capital in all its forms, including equity, debt, mezzanine and guarantees, to meet businesses’ needs and achieve development impact. CDC has net assets of £5.1bn. Find out more at: www.cdcgroup.comand @CDCgroup
FinDev Canada
The Development Finance Institute Canada Inc., operating under the FinDev Canada brand, is a Canadian institution dedicated to providing financial services to the private sector in developing countries with the aim of combating poverty through economic growth by focusing on three main themes: economic development through job creation, women economic empowerment, and climate change mitigation. The Development Finance Institute Canada Inc. is a wholly owned subsidiary of Export Development Canada (EDC).
Mastercard Foundation
The Mastercard Foundation seeks a world where everyone has the opportunity to learn and prosper. The Foundation’s work is guided by its mission to advance learning and promote financial inclusion for people living in poverty. One of the largest foundations in the world, it works almost exclusively in Africa. It was created in 2006 by Mastercard International and operates independently under the governance of its own Board of Directors. The Foundation is based in Toronto, Canada. For more information and to sign up for the Foundation’s newsletter, please visit www.mastercardfdn.org. Follow the Foundation at @MastercardFdn on Twitter.
OPIC
The Overseas Private Investment Corporation (OPIC) is a self-sustaining U.S. Government agency that helps American businesses invest in emerging markets. Established in 1971, OPIC provides businesses with the tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries, and advances U.S. foreign policy and national security priorities. OPIC helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at home and abroad. OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity fund managers.
OPIC services are available to new and expanding businesses planning to invest in more than 160 countries worldwide. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers. All OPIC projects must adhere to best international practices and cannot cause job loss in the United States.
Proparco
Proparco is a subsidiary of AgenceFrançaise de Développement (AFD) focused on private sector development. It has been promoting sustainable economic, social and environmental development practices for the past 40 years. Proparco provides funding and support to both businesses and financial institutions across Africa, Asia, Latin America and the Middle-East. It seeks to partner projects in key development sectors – infrastructure (with a specific focus on renewable energies), agribusiness, financial institutions, healthcare and education, etc. – and to boost the contribution of the private sector to achieving the sustainable development goals adopted by the international community in 2015. As a means to this end, Proparco finances businesses that are instrumental in creating decent jobs that pay decent wages, in supplying essential goods and services and in battling climate change. For more information, go to: http://www.proparco.fr/en and @Proparco.
The Graça Machel Trust
The Graça Machel Trust is an advocacy organisation that works across the continent to drive positive change across women’s and children’s rights, as well as governance and leadership. Through our support of local initiatives and connecting key stakeholders at a regional, national and sub-national level, we help to catalyse action where it is needed. By using our convening power the Trust seeks to amplify the voices of women and children in Africa; influence governance; and promote women’s contributions and leadership in the economic social and political development of Africa.
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For more information, please contact:
FinDevCanada
AngelaRodriguez
Tel: 514-673-7154
Email: arodriguez@findevcanada.ca
CDC
Rhyddid Carter
Tel: +44 (0) 7824 552 326
Email: rcarter@cdcgroup.com
OPIC
Laura Allen
Tel: (202)357-3976
Email: Laura.Allen@opic.gov
Proparco
RomainEsperon
Tel: +33 1 53 44 38 94
Email: presse@proparco.fr
Mastercard Foundation
Tonya Reid
Tel: +1 437-992-3432
Email: treid@mastercardfdn.org
The Trust supports and mobilises civil society networks on issues of ending child marriage, ending violence against children, ending female genital mutilation and promoting children’s rights, to carry out advocacy and action across Africa. Special focus is placed on Malawi, Mozambique, Tanzania and Zambia where child marriage continues to be a problem largely driven by poverty, gender inequality, harmful traditional practices, conflict, low levels of literacy, limited opportunities for girls and weak or non-existent protective and preventive legal frameworks.
Education is a fundamental right for all children, which is also a vehicle for social, economic and political transformation in communities, countries and the African continent at large. Recent studies indicate a lack of progress in some of the critical commitments aimed at improving education quality, access, retention and achievement, particularly for girls. In most African countries, girls may face barriers to learning, especially when they reach post-primary levels of education. By implementing multi-dimensional approaches to education which includes core education, personal development, life skills and economic competencies, the Trust partners with funding partners, governments, civil societies and the private sector to improve education access.
The Nutrition and Reproductive, Maternal, New-born, Child and Adolescent Health and Nutrition, (RMNCAH+N) of the Children’s Rights and Development Programme aims at promoting the Global Strategy for women, children and adolescents’ health within the Sustainable Development Goals (SDG) agenda. The strategy emphasises on the importance of effective country leadership as a common factor across countries making progress in improving the health of women, children and adolescents.
Through its Early Childhood Development (ECD) plan, The Trust will seek to put into action the new science and evidence Report that was presented by Lancet Series on Good and early development – the right of every child. This will be achieved by mobilising like-minded partners to contribute in the new science and evidence to reach all young children with ECD. The Trust’s goal is to be a catalyst for doing things differently, in particular, to rid fragmentation and lack of coordination across ECD sectors. In response to evidence showing the importance of political will in turning the tide against the current poor access and quality of ECD. Even before conception, starting with a mother’s health and social economic conditions, the early years of a child’s life form a fundamental foundation that determines whether a child will survive and thrive optimally.