In recognition of their pivotal role in fostering economic growth, innovation and social equity, Development Bank of Nigeria Plc (DBN) and the French Republic and the French Development Agency (AFD) have teamed up to empower Nigerian women entrepreneurs.
On December 11th, 2023, under the high patronage of His Excellency, the French Ambassador to Nigeria, Marc Fonbaustier, DBN’s Managing Director, Dr Tony Okpanachi and AFD’s Country Director, Xavier Muron convened at DBN’s Headquarters in Abuja to sign a €50 million credit line and a €825 000 technical assistance and capacity building grant. Through these financings, the two institutions are collaborating to provide tailor-made tools to strengthen access to financing for women MSMEs while developing a gender mainstreaming approach with financial and non-financial services specifically adapted to women’s needs.
As a public development bank, DBN constitutes a strategic stakeholder to better take into consideration gender issues within the financial sector and support the financing of MSMEs contributing to the empowerment of women.
Dr. Tony Okpanachi, highlighting DBN’s role and commitment to empowering women in Nigeria stated: “At Development Bank of Nigeria, we are unwavering in our commitment to empowering women MSMEs in Nigeria. We believe that women are the backbone of our economy, and by supporting them, we are not only promoting gender equality but driving sustainable economic growth.”
“Our bank is dedicated to providing financial inclusion and access to capital for women entrepreneurs, thereby enabling them to grow their businesses and create jobs. We are also passionate about supporting the girl child, recognising that education and economic empowerment are key to unlocking their full potential.”
Xavier Muron, AFD’s Country Director, took the opportunity to highlight that “by providing women with tools, resources, network and mentorship, AFD is committed to participating in the creation of a more inclusive and resilient global economy while encouraging women to bring their unique perspectives and ideas to the table.”
The project provides a unique approach to support DBN in catalyzing financing towards MSMEs and in particular underserved clients. To this point, part of the financing will be exclusively allocated to first-time borrowers. In addition, priority for access to financing and capacity building to micro and small enterprises has been a strong focus of the design of this financial product. Lastly, the credit line aims at providing medium to long-term financing to what is today a much-underserved segment of the population.
All in all, the support to DBN in its role as a second-tier public development bank will make it possible to seek a transformational movement to integrate gender issues and redirect financial flows within the Nigerian financial system via the PFIs.
With this in mind, it was only natural that this highly anticipated event occurred during the 16 days of activism against gender-based violence (25 November – 12 December). Indeed, research has proven that reducing economic dependence, promoting gender equality and empowering gender champions, are some of the key structural solutions to fight against the symptoms and the roots of GBV. To this point, M. Marc Fonbaustier, the French Ambassador to Nigeria reiterated the long-term commitment of France to support all of its partners towards “economic empowerment of women as it builds independence, increases confidence and provides for a more equal world.”
Dr. Okpanachi acknowledged the dedication of France and AFD, to ensure a smooth and efficient implementation of this program: “DBN welcomes this partnership as it shows the strong will of key partners to implement Sustainable Development Goal 5 – Gender Equality and empowerment of all women and girls. The partnership underscores a collective action to work together towards creating a more inclusive and prosperous society for all.”
Meanwhile, Mr Muron commended “the professional approach adopted by DBN which led to this signing ceremony which is the beginning of a very crucial program which will, without a doubt, enhance the capacity of DBN, the Participating Financial Institutions and the Women MSMEs benefiting from it.”
Development Bank of Nigeria (DBN) is a wholesale development finance institution set up by the Federal Government of Nigeria (FGN) in collaboration with global development partners to address the major financing challenges facing Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria. DBN’s objective is to alleviate financing constraints faced by MSMEs and small Corporations in Nigeria through the provision of financing and partial credit guarantees to eligible financial intermediaries on a market-conforming and fully financially sustainable basis.
The Agence Française de Développement (AFD – French Development Agency) funds, supports, and accelerates the transitions to a fairer and more sustainable world – aligned with the Sustainable Development Goals. Focusing on climate, biodiversity, peace, education, urban development, health and governance, our teams carry out more than 4,000 projects in France’s overseas departments and territories and another 115 countries. In this way, it contributes to the commitment of France and the French people to support sustainable development goals.
AFD has been present in Nigeria since 2008 with its main office based in Abuja along with an additional branch in Lagos. Its main sectors of intervention in the country are financial services, energy, higher education & vocational training, agriculture, water supply as well as clean transportation. For more information, visit https://www.afd.fr/en.
Essentially, gender equality is a priority for the French government. Internationally, the French Ministry for Europe and Foreign Affairs delivers on this commitment through its feminist foreign policy. France is advocating gender equality in international forums and wants this goal to be taken into account in all issues, including inequality reduction and sustainable development, peace and security, defence and promotion of fundamental rights, and climate and economic issues. By 2025, France is committed to ensuring that 75% of the projects funded by France’s official development assistance help to improve gender equality.
The collaboration between DBN and AFD will no doubt impact women-owned businesses in Nigeria by addressing not only their financing challenge but their capacity to scale as well.
