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Expanding Women’s Role in Africa’s Modern Off-Grid Lighting Market. ENERGIA Policy and Practice Meet Amsterdam, December 13, 2011. The Private Sector: Opportunities through Women . Boards: When include women indicator for better managed companies.
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Expanding Women’s Role in Africa’s Modern Off-Grid Lighting Market ENERGIA Policy and Practice Meet Amsterdam, December 13, 2011
The Private Sector: Opportunities through Women • Boards: When include women indicator for better managed companies. • Opportunity: Only 10% of all directorships todayare filled with women (globally). • Entrepreneurs: 30-40% of SMEs in our markets are ownedby women, but barriers to doing business are higher. • Opportunity: Removing barriers to doing business forwomen can result in more opportunities and growth. • Employees: About 40% of the world’s jobs are filled withwomen; critical in export sectors (textiles, agribiz, ICT). • Opportunity:Productivity gains could be had from better adjusting workplace conditions to women’s contexts. • IFC’s clients & their client base: As SME clients or as households: Women take financial decisions differently. • Opportunity: With a little bit of market segmentation, Banks and other Service providers can gain market share. • Stakeholders: Women strong in local community groups. • Opportunity: Ensure outreach for good risk management.
IFC: We start from a good base • Boards: 19% of 211 IFC nominee directors are women. Target: 30% by FY15. 8 advisory projects promote awareness and education about/for women directors. Leaders • Entrepreneurs: Regulatory reform programs in 12+ countries/5 regions addressdoing business for women entrepreneurs. 40% of 14K women trained through Business Edge in FY11 are women. SME Toolkit has customized resources. Entrepreneurs • Employees:– about 30% of IFC clients’ employees are female. In thetextiles sector (85% female employment), the ILO/IFC Better Work partnership has improved productivity and workplace conditions for ~560K women. Employees • SME Banking Clients: Between 2006 and 2010 $113 Million* targeting women entrepreneurs in Africa coupled with advisory programs for Banks and women (2,000 women-business owners trained; >6,100 new deposit accounts opened) • Households connected through Infrastructure: PPP studies potential impact. IFC’s Clients & their client base • Stakeholders: IFC’s Sustainability Framework - takes into account women as stakeholders (communities/employees). IC’s public dialogue tool engages women. Stakeholders * includes recently signed & committed deals in Turkey and Romania
The example of Promoting Women’s Access to Finance: “The Secret’s in the Mix” Investment
There is an emerging awareness of the opportunity… Some leading FIs successfully capitalized on opportunities in this segment. Visit Global Banking Alliance for Women at www.gbaforwomen.org
Lighting Africa: Women as Entrepreneurs, Consumers and in the Value Chain
Women Likely to Gain More from Off-Grid Lighting Source: World Bank Group Enterprise Survey Database
Having a bank account may not affect decision preferenceto buy a certain product.
Access to Finance is Key Priority Focus on women justified, given they are more likely to stay off-grid? Higher development impact? Data Source: “Expanding Opportunities for Women Entrepreneurs in Africa.” World Bank, Fall 2011.
The Way Forward for Financial Institutions • Consider reaching the women’s market through targeted products and services, a specific outreach strategy, and possibly financial and management skills courses. • Partner with women’s groups that could assist with market outreach while at the same time leverage financial risk (for example, group lending, “micro-consignment”, etc.) • At the SME level, promote women and men as distributors/resellers through distributor finance schemes. • Explore mobile banking and the potential added value of linking mobile technology with off-gird lighting products.
THANK YOU! Carmen Niethammer IFC Women in Business cniethammer@ifc.org Peter Alstoneand Brendon Mendonca Humboldt University Research Lab peter.alstone@humboldt.eduAdriana Eftimie Oil, Gas and Mining Division/ESMAP, World Bank Group aeftimie@worldbank.org
Formal SMEs1 use of financial institution loans and financing constraints Percent of total formal enterprises in emerging markets (i.e., excluding high-income OECD) Formal SMEs in emerging markets face significant financing constraints – the challenge is greater for women-owned SMEs 27-33 100 Value gap in credit financing for formal SMEs in emerging markets is ~$1-1.2Tn 35-43 20-24 8-10 Unserved: Do not have a loan or overdraft but need a loan Well-served: Have a loan and/or overdraft and no financial constraint Under-served: Have a Loan and/or overdraft but no financial constraints No need Total formal SMEs in emerging markets 1 The number of SMEs unserved or under-served is calculated based on SMEs’ access to bank loans and overdraft only (i.e., not including SMEs’ access to trade financing, leasing, factoring and other forms of credit). However, the value of the credit gap in dollars takes into consideration credit available through loans, overdrafts, leasing, financing, trade finance, and other forms of formal credit. SOURCE: McKinsey-IFC SME database; team analysis
Very small Small Medium Majority of women-owned formal SMEs are un-served or underserved in most parts of the world Unserved Well served Under served Do not need credit Credit needs and access for formal SMEs with at least one female owner by region1, Percent 27-33 23-28 12-15 28-34 21-25 31-38 17-21 21-26 53-65 8-10 23-29 East Asia 5-6 Latin America 14-17 43-53 18-22 11-13 55-68 14-17 4 62-76 14-17 15-18 10-12 11-13 55-67 18-22 12-14 49-59 17-21 18-22 24-30 33-40 18-22 Sub-Saharan Africa 6-7 7-8 15-18 Central Asia and Eastern Europe 17-21 35-43 13-16 24-30 24-30 31-37 13-15 23-28 11-13 43-53 19-23 17-20 25-31 11-14 42-52 21-26 14-17 43-53 27-34 19-23 34-41 South Asia 11-14 12-14 10-12 MENA 18-22 36-44 10-12 26-31 29-35 27-33 7-9 27-33 19-24 46-56 16-20 9-11 • Sub-Saharan Africa and East Asia report the highest rates of unserved women enterprises • Underserved rates are highest among medium enterprises, since most already have access to finance 1 Definitions (see appendix): Unserved: Do not have a loan AND applied OR needed loan; Underserved: Have a loan but access to finance is a constraint (but not necessarily a “major” or “severe” constraint, which is a separate question); Well-served: Have a loan AND access to finance is not a constraint; No need: Do not have a loan AND did not apply AND did not need SOURCE: IFC SME database, Enterprise Survey, team analysis
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