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The Women Entrepreneurs Opportunity Facility, launched in 2014
by Goldman and the World Bank’s International Finance Corp
private-sector development arm, had initially set a goal of
providing capital to 100,000 women entrepreneurs over 10 years,
but has reached 50,000 in just four years.
The institutions said $1 billion in investments were made in 26
financial intermediaries in 26 countries, including some of the
world’s poorest and most conflict-affected states.
These so-called “anchor” investments in small banks and non-bank
financial institutions provide capacity and incentives to boost
lending to women-owned businesses, which typically have a hard
time gaining financing, particularly in emerging market
countries.
The World Bank Group estimates that some 70 percent of women who
own small and medium-sized enterprises in the developing world
are either shut out of financial institutions, or can only get
high-cost short-term loans. This has resulted in a $1.5 trillion
credit deficit for women entrepreneurs in emerging markets.
"The fact that we have surpassed our original target by 40
percent this early on shows that there is huge demand for these
investments," said Cristina Shapiro, global head of Goldman’s
10,000 Women program, which provides access to capital,
mentoring and education to women entrepreneurs.
IFC initially contributed $100 million towards the Women
Entrepreneurs Opportunity Facility, along with a $43 million
investment from the Goldman Sachs Foundation.
(Reporting by David Lawder; Editing by Bernadette Baum)
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