IFC and ALCB Fund Propel West Africa’s First Gender Bond to Support Women Entrepreneurs
IFC and ALCB Fund jointly invest in West Africa’s first gender bond, issued by Ecobank Côte d’Ivoire, aimed at enhancing access to finance for women-owned SMEs. This notable investment is set to facilitate 1,200 loans, underscoring a commitment to gender equality and sustainable economic development in Côte d’Ivoire. The initiative, part of IFC’s Banking on Women program, highlights the role of financial inclusion in empowering communities.
On March 11, 2025, the International Finance Corporation (IFC) and the Africa Local Currency Bond Fund (ALCB Fund) revealed a significant investment in a gender bond issued by Ecobank Côte d’Ivoire. This represents the first gender bond issued in the West Africa Economic and Monetary Union (WAEMU), aimed at enhancing access to finance for women-led small and medium-sized enterprises (SMEs) in Côte d’Ivoire.
The bond proceeds are expected to facilitate nearly 1,200 loans to women-owned SMEs, thereby fostering growth and job creation in a sector known for facing substantial credit gaps. This gender bond, endorsed by the IFC, is notably only the second of its kind in Africa, following the gender bond issued by NMB Bank.
The joint investment from IFC and ALCB Fund amounts to XOF 4.9 billion (approximately $7.8 million), contributing to the total bond issuance of XOF 10 billion ($16.0 million). The ALCB Fund acted as a financier for both entities, with the IFC providing a credit guarantee of XOF 1.25 billion ($2 million), ensuring the success of this innovative financial instrument.
Furthermore, this initiative supports Ecobank’s Ellevate program, which provides tailored banking solutions and advisory services to women entrepreneurs. IFC will supplement their investment with advisory support, enhancing Ecobank’s effectiveness in promoting access to finance for women-owned SMEs.
Sérgio Pimenta, IFC’s Vice President for Africa, emphasized the significance of this partnership, stating that it is vital to increase financial access for women business owners. Paul-Harry Aithnard, Ecobank’s Regional Executive Director for WAEMU, highlighted the broader social impact of financing women entrepreneurs, noting their influence on family and community welfare.
Brock Hoback, lead for the ALCB Fund, expressed pride in being an anchor investor during a week that coincides with International Women’s Day. He noted the alignment of this bond with the Sustainable Development Goals, emphasizing Ecobank’s commitment to advancing economic empowerment through financial inclusion.
Integrated into IFC’s Banking on Women program, this investment reflects a broader commitment to catalyze financial services for women and women-owned MSMEs in emerging markets. Currently, IFC has invested over $10 billion in support of women entrepreneurs across 83 countries, reinforcing their dedication to gender equality in finance.
The World Bank’s Joint Capital Program (J-CAP) provided additional technical support, ensuring transaction success. IFC’s activities in Côte d’Ivoire are significant, with a total investment portfolio reaching $761 million as of January 2025, focused on diverse sectors, including infrastructure and access to finance for SMEs.
The IFC is a leading global development institution focused on empowering private sector growth in emerging markets, striving for a future free from poverty while maintaining ecological harmony. The ALCB Fund seeks to foster local capital market ecosystems by acting as an anchor investor and providing essential technical assistance. Ecobank Côte d’Ivoire, part of the Ecobank Group, serves millions of customers across Africa, showcasing comprehensive financial products and services.
The launch of West Africa’s first gender bond by Ecobank Côte d’Ivoire represents a significant step towards enhancing financial access for women-led SMEs. The joint investment by IFC and ALCB Fund not only addresses the credit gap for women-owned businesses but also underscores the commitment to promoting gender equality and sustainable economic empowerment. This initiative illustrates the essential role of finance in driving inclusive growth and community development, with broader implications for enhancing local capital market structures in the region.
Original Source: www.ifc.org
