IFC and ALCB Fund Support First Gender Bond in West Africa by Ecobank

The IFC and ALCB Fund have invested in Ecobank Côte d’Ivoire’s gender bond, the first of its kind in West Africa, to enhance financial access for women-led SMEs. The funds will provide nearly 1,200 loans to support growth and job creation, contributing toward gender equality initiatives. This investment underscores the significance of economic empowerment and is aligned with sustainable development goals.

On March 11, 2025, in Abidjan, Côte d’Ivoire, the International Finance Corporation (IFC) and the Africa Local Currency Bond Fund (ALCB Fund) declared an anchor investment in a groundbreaking gender bond issued by Ecobank Côte d’Ivoire. This is the first gender bond within the West Africa Economic and Monetary Union (WAEMU), aimed at enhancing financial access for women-led small and medium-sized enterprises (SMEs) in the region.

The bond aims to provide nearly 1,200 loans to women-owned SMEs, thus promoting growth, job opportunities, and addressing the significant credit gap encountered by female entrepreneurs in Côte d’Ivoire. Notably, this gender bond is only Africa’s second issuance after the gender bond backed by IFC via NMB Bank, specifically dedicated to initiatives fostering gender equality and women’s empowerment.

The ALCB Fund and IFC collectively invested XOF 4.9 billion (approximately $7.8 million) in the bond, part of a total issuance of XOF 10 billion ($16.0 million). The investment includes a credit guarantee from IFC amounting to XOF 1.25 billion ($2 million) to boost initiatives supporting women-led SMEs through Elleva, Ecobank’s specialized banking program offering adapted financial products and business advisory services.

Sérgio Pimenta, IFC Vice President for Africa, emphasized the significance of this investment, noting it strengthens the collaboration with Ecobank and enhances access to finance for women-led businesses as a critical strategy for inclusive economic growth in Côte d’Ivoire.

Ecobank Côte d’Ivoire’s issuance reflects its mission to promote sustainable financial solutions for economic inclusion across the continent. Paul-Harry Aithnard, Ecobank’s Regional Executive Director for WAEMU, highlighted the broader impact of investing in women entrepreneurs, suggesting it has a positive ripple effect on families and communities.

Brock Hoback, Fund lead for ALCB, expressed satisfaction in supporting this endeavor, coinciding with International Women’s Day, as it aligns with Sustainable Development Goals and emphasizes economic empowerment. This bond issuance supports Ecobank’s inaugural XOF bond and strengthens its commitment to financial inclusion.

The IFC’s participation forms part of its Banking on Women program, which aims to catalyze financial services specifically for women and women-owned micro, small, and medium-sized enterprises across emerging markets globally, with over $10 billion invested in 83 countries.

The World Bank’s Joint Capital Program (J-CAP) further supported the project through technical assistance, reflecting ongoing efforts to develop deep and efficient local capital markets. The IFC’s portfolio in Côte d’Ivoire stands as one of its largest in the WAEMU region, focusing on several sectors, including affordable housing, agriculture, and finance for SMEs.

The investment by the IFC and ALCB Fund in Ecobank Côte d’Ivoire’s gender bond marks a significant step towards enhancing financial access for women-led SMEs in the WAEMU region. This initiative addresses critical credit gaps while promoting gender equality and empowering women economically. Collaborative efforts emphasize the importance of sustainable financial solutions to foster inclusive growth across Africa.

Original Source: www.ifc.org