There has been significant global progress in advancing gender equality, including improvement in women’s access to education, increased representation in leadership positions, and a reduction of women living in extreme poverty. Yet, critical gender gaps remain. In some areas, gender equality initiatives, programs and targets are facing setbacks, and the barriers women encounter continue to widen these gaps. When women face exclusions, it impacts their ability to contribute to food security, economic growth, and climate action, ultimately slowing progress towards achieving the UN’s Sustainable Development Goals.
International Women’s Day, officially recognised by the UN in 1977, is a moment to celebrate and acknowledge the economic, social, and cultural achievements made by women. This year’s theme, Accelerate Action, is a timely reminder that the urgency to address development challenges, such as women’s financial inclusion and climate change, requires commitment, focus and urgency.
FinDev Canada, Canada’s bilateral Development Finance Institution (DFI) recognises the need for sustainable investment and the opportunity to have positive impact. We aim to advance gender equality, support climate and nature action and promote market development by providing financial and non-financial products to mobilise private capital in emerging markets and developing economies (EMDEs).
Empowering women through enhanced economic participation
Promoting women’s economic participation is critical for a healthy and sustainable future. The World Bank indicates a US$ 1.7 trillion financing gap for women-led small and medium enterprises (SMEs), creating a significant barrier to unlocking women’s potential. Bridging the gap for women-led SMEs can create jobs, promote economic growth and enhance gender-inclusive practices within business operations.
FinDev Canada uses a gender-lens approach to help narrow the existing gap in three ways. First, by investing in women-owned businesses or through investment funds with a gender-lens approach. Second, by providing capital to financial intermediaries to strengthen women entrepreneurs’ access to finance. Third, by supporting the development of local women’s entrepreneurship ecosystems through investments and other strategic interventions or partnerships.
An example of how FinDev Canada supports financial inclusion through its partnership with various financial institutions and intermediaries is our investment in JMMB, a women-founded integrated financial services provider in Jamaica. JMMB addresses barriers to accessing finance by offering women financial and non-financial services, such as capital support, education and home loans, retirement plans, trainings, and financial education resources. With FinDev Canada’s contribution, JMMB has expanded access to much-needed financial resources for SMEs, particularly women- owned or led, while enhancing women’s representation in employment and leadership positions.
Women’s economic participation is more than a financial challenge, it’s a climate challenge
According to the Food and Agriculture Organization (FAO), a United Nations agency leading international hunger relief, approximately 43% of global agricultural labor force are women and they produce between 60% and 80% of food in developing countries, thereby contributing to food security. Despite their critical role, women are disproportionately vulnerable to climate change, as they often lack access to financial tools and resources and therefore, struggle to invest in sustainable climate-resilient agricultural practices and adapt to climate change. With 2024 recorded as the hottest year, there is an urgent need to support women on the frontlines of climate change.
To advance financial inclusion and climate action, FinDev Canada has invested in EcoEnterprises Fund III, a women-owned and women-led fund, which provides loans and equity investments to SMEs tackling climate change such as Equilibria. Based in Colombia, Equilibria is an organic lime producer and exporter addressing climate adaptation and resilience. The SME restores former cattle farms into organic orchards, enhancing soil quality and contributing to the country’s economy and agricultural sector. EcoEnterprises supports financial inclusion across its portfolio by increasing women’s representation in senior management positions, and supporting jobs and entrepreneurship. This support is facilitated by the Fund’s gender-lens investing strategy, which considers gender equality opportunities across the investment lifecycle.
Women can play a significant role in addressing climate change. As reported by Bloomberg, businesses with higher representation of women in leadership roles lead the way in environmental reporting and climate governance, investing more in renewable energy and energy efficiency improvement than their peers.
Accelerating gender action through Technical Assistance
FinDev Canada provides Technical Assistance (TA) and advisory to help clients improve their development impact outcomes. This includes advisory services to strengthen portfolio companies and accelerate gender action. For instance, the TA facility supported Equilibria’s Empowered Women project, which offered a series of professional growth coaching sessions and personal finance training to women across the organization, further promoting gender inclusion in the workplace.
While gender gaps persist and present obstacles, DFIs are well-positioned to support sustainable and inclusive growth in EMDEs. We know that women’s economic empowerment is key to creating global, impactful and lasting change. FinDev Canada remains focused and committed to address urgent development needs by working with the private sector to advance gender equality and accelerate progress.