On Global Women’s Entrepreneurship Day, Lionesses of Africa’s Business Confidence Report Celebrates African Women Entrepreneurs’ Optimism About Business | African Development Bank

Women entrepreneurs in Africa are demonstrating widespread optimism and sustained resilience despite the prevailing economic climate youe 2022 Lionesses Business Confidence Report and Index launched on Global Women’s Entrepreneurship Day.

The report, prepared by Lionesses of Africa Public Benefit Corporation and New York University, found that 93 percent of female entrepreneurs expect their business to be better a year from now, while only 2 percent expect their business to be worse. to be. The report is funded by the African Development Bank Group, through the Affirmative Finance Action for Women in Africa (AFAWA) Initiative.

The second edition of the 2022 Lionesses Business Confidence Report and Index, comes at a critical time, comparing last year’s data and evaluating African women’s business performance, access to finance and digital transformation. In addition, stakeholders can learn how 100 of Africa’s top female business leaders were surveyed, how they assess the state of their business and their opportunities for the year ahead.

“The Bank is delighted to be partnering with Lionesses of Africa through the AFAWA initiative on the latest Lionesses Business Confidence Report and Index. We hope women entrepreneurs, financial institutions and governments use the rich data to make powerful business and policy decisions to unlock the potential of women-owned businesses across the continent,” said Malado Kaba, African Development Bank Group Director of the Gender , Women and The Social Society Department noted.

The report also assesses female entrepreneurs’ external financing plans and their confidence in the willingness of financial institutions to finance their ventures, as 66% of women expect to look for external financing in the future (up from 61% in 2021). More than 50% of women expect financial institutions to be willing to provide loans or credit to their businesses in the next six months, with women in East Africa having the most confidence.

“Even before the pandemic, women-led businesses faced significant challenges in accessing finance, often lacking the financial track record and collateral needed to obtain business loans, leading financial institutions to consider them as considered risky,” said Esther Dassanou, AFAWA coordinator at the African Development Bank group.

“The Bank is committed to accelerating the ability of female entrepreneurs to access finance by mobilizing up to $5 billion by 2026. The Bank is also committed to working with African governments to ensure that there are is an inclusive policy that benefits female entrepreneurs,” she added.

Lionesses of Africa Melanie Hawken, founder and CEO, confirmed that access to finance remains a major concern. Lionesses funded their companies’ operations through 2021 and through 2022 largely by tapping internal sources of funding, primarily retained earnings and personal capital. There was a significant decrease in access to covid-19 business support programs and other government grants compared to the previous year.

Another positive trend is strong signs of recovery from the impact of the pandemic, with two-thirds returning or expected to return to pre-COVID-19 business levels by the end of 2022.

“Two-thirds of Lionesses expect to look for external financing soon, but only half think financial institutions are willing to provide the loans or credits they need. However, this represents a larger percentage than in 2021, indicating modest but growing confidence in obtaining funds from financial institutions, and that is a trend in the right direction,” said Hawken.

Download the 2022 Lionesses Business Confidence Report and Index below: