Multilateral Coalition Commits $20 Billion to Women’s Economic Empowerment

Multilateral Coalition Commits $20 Billion to Women’s Economic Empowerment

(IN BRIEF) A coalition of public and private investors has pledged $20 billion over three years to advance women’s economic empowerment through the 2X Challenge. Launched initially during the 2018 G7 Summit, the initiative has surpassed its fundraising targets, culminating in a historic inclusion of private sector participation. This expansion aims to amplify gender-smart capital investments globally, driven by a consensus among Development Finance Institutions and Multilateral Development Banks. The commitment reflects a growing recognition of the economic benefits of gender diversity in entrepreneurship and underscores the initiative’s role in fostering inclusive economic growth.

(PRESS RELEASE) LUXEMBOURG, 17-Jun-2024— /EuropaWire/ — At the conclusion of the G7 Leaders’ Summit in Italy, a diverse coalition of public and private sector investors unveiled a landmark commitment: $20 billion over the next three years dedicated to advancing women’s economic empowerment through the 2X Challenge.

This global initiative, originally launched during the G7 Summit in Canada in 2018, has exceeded expectations at each phase. What began with a goal of mobilizing $3 billion by 2020 has evolved into a far-reaching movement. The latest commitment builds upon previous successes, including surpassing a $15 billion target set during the 2021 G7 Summit in the United Kingdom.

For the 2024-2027 period, the 2X Challenge marks a pivotal moment as it welcomes private sector participation for the first time. Seven leading private entities have already pledged their support, underscoring a collective effort to harness gender-smart capital and drive sustainable economic growth.

Jessica Espinoza, CEO of 2X Global, the organization overseeing the Challenge, emphasized the significance of this expansion: “Integrating private capital providers alongside public institutions marks a transformative milestone for the 2X Challenge. Together, we aim to amplify our impact and narrow the gender gap in finance, fostering inclusive prosperity globally.”

Reflecting on the initiative’s impact, Nadia Calviño, President of the EIB Group, highlighted the broader implications: “The success of the 2X Challenge underscores the potential of gender-smart investing to build fairer societies. As the first Multilateral Development Bank to adopt these criteria, we are proud to see others, including private partners, joining this pivotal effort.”

The commitment has garnered widespread support from an array of Development Finance Institutions and Multilateral Development Banks, affirming a collective dedication to gender lens investing in developing countries. Underpinning this effort are the 2X Criteria, which have become a gold standard in gender lens investing globally.

The initiative also underscores a compelling economic case: greater gender diversity in entrepreneurship could boost global GDP significantly, underlining the potential economic benefits of investing in women.

As the 2X Challenge enters its next phase, the global community is poised to leverage this momentum to achieve lasting, inclusive economic growth worldwide.

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group aims to embed gender equality and in particular women’s economic empowerment in its business model and is also committed to driving gender equality in its workplace. The EIB financed a total of 63 projects across the globe in 2023 that significantly contributed to gender equality and women’s economic empowerment, providing €5.8 billion of investment, more than half of which also supported climate action.

About 2X Global

2X Global is a membership and field-building organisation focused on unlocking gender-smart capital at scale. We engage the full spectrum of investment actors, capital providers, and intermediaries working in public and private markets, across both developed and emerging economies towards this mission. Through a broad and diverse set of activities we activate and engage our global community to advance intersectional investment agendas, scale the field, shift mindsets, and facilitate capital deployment.

About the 2X Challenge

The 2X Challenge was founded by the G7 Development Finance Institutions as a call to action to shift more capital towards investments that empower women in developing countries to access entrepreneurship and leadership opportunities, quality jobs, and products and services that enhance their economic participation.

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SOURCE: European Investment Bank