Q&A: Can gender bonds unlock Africa’s potential?:
In Africa, where women make up 45% of entrepreneurs — the highest rate globally — gender disparity in access to funding remains a significant barrier to economic equity and growth.
Zineb Sqalli, managing director and partner at Boston Consulting Group, said this when she addressed a panel, titled Can Gender Bonds and Innovative Mobile Products Unlock a $ 2.5 Trillion Opportunity?, at the recent Africa Financial Summit, held in Casablanca, Morocco, on 9 and 10 December,
Despite their potential, women-led businesses receive six times less funding than those led by men, limiting their ability to scale, create jobs, and drive GDP growth.
This imbalance represents a missed economic opportunity worth an estimated $ 625 billion for the continent. Addressing it could unlock transformative progress.
One potential solution lies in gender bonds — financial instruments that direct capital to projects and businesses that empower women.
The Mail & Guardian spoke to Sqalli about the potential of these tools to reshape the financial landscape for women in Africa.
How do gender bonds contribute to achieving gender equality in the African context?
Gender bonds are innovative financial instruments that mobilise capital specifically for projects empowering women. Africa has the highest share of women entrepreneurs in the world — 45% in sub-Saharan Africa, for example. And women-led businesses receive six times less funding than men. In this context, these bonds directly address systemic financial inequities. Gender bonds provide tailored financing for women-led initiatives, empowering them to scale businesses, create jobs, and reinvest in communities. This represents a massive opportunity for the continent, estimated at $ 625 billion GDP, if we are able to bridge the funding gap.
How are funds raised through gender bonds effectively reaching and benefiting women-led enterprises?
Funds from gender bonds are often directed towards projects that directly benefit women, such as affordable loans for women-led small and medium enterprises or initiatives such as social housing. For example:
- Banco Davivienda (Colombia): $ 100 million raised, disbursed as 12,000 loans to women-led businesses and 84,000 housing loans for low-income women.
- Asian Development Bank (Indonesia): $ 120 million gender bond targeting women-led farms and micro-enterprises, reaching 20,000 beneficiaries.
- African Development Bank (AfDB): Gender bond funds are integrated into AFAWA initiatives, supporting thousands of SMEs through guarantees and affordable loans.
These examples show that gender bonds ensure capital flows to impactful initiatives while promoting transparency in deployment.
Are there particular sectors where gender bonds have shown the most promise in empowering women economically?
Promising sectors include agriculture, where women constitute over half the workforce in many African countries and can benefit from productivity-boosting investments. Informal retail and renewable energy also show strong potential, as women dominate these spaces yet lack scalable financing. Tech and digital innovation are emerging areas of growth, with women leveraging mobile platforms and e-commerce for entrepreneurship, a trend accelerated by targeted financing.
What role does private sector investment play in the success of gender bonds in Africa?
The private sector is key to scaling gender bonds by issuing them and integrating gender-specific initiatives into broader corporate strategies. Private investors also bring innovation, credibility, and scalability to the market. Their participation enhances confidence for institutional and global ESG (environmental, social and governance) investors. For example, banks and corporates can use gender bonds to attract sustainable funding while designing accessible financial products for women entrepreneurs.
What makes the African market uniquely positioned for gender-focused financial instruments like these bonds?
Africa’s entrepreneurial dynamism, combined with its growing fintech and mobile money ecosystem, creates a unique environment for gender bonds. Fintech platforms facilitate data collection on women borrowers, demonstrating their reliability and creditworthiness. This data can be used to structure gender bonds that target underserved populations. For example, mobile money systems provide financial histories for women entrepreneurs, enabling them to access gender-bond-funded credit programmes.
Why are there only five gender bonds in Africa, and what are the hindrances to issuing more?
Limited issuance stems from several barriers.
- Lack of data: Insufficient evidence of gender bond profitability discourages investment.
- Regulatory gaps: Many countries lack frameworks for structuring and regulating these instruments.
- Capacity constraints: Financial institutions often lack technical expertise to issue and manage gender bonds.
Addressing these barriers requires initiatives like AfDB’s AFAWA (Affirmative Finance Action for Women in Africa) to de-risk bonds and global efforts to improve gender-focused data availability.
What are some solutions to improve data collection and build trust between lenders and female business owners?
Data initiatives: Programmes like CIDE by We-Fi collect gender-disaggregated data to showcase the effect of investments and build lender confidence.
Transparency mechanisms: Publishing data on repayment rates and outcomes helps lenders see women entrepreneurs as reliable borrowers.
Public-private partnerships: Collaborations can develop data-sharing platforms that aggregate financial and operational data.
Although digital platforms like mobile money systems create alternative credit profiles for women, these mechanisms are not directly linked to gender bonds but can complement them by identifying eligible women-led businesses for bond-supported initiatives.
Ramokgopa celebrates 5-year load-shedding milestone, but warns, ‘we are not out of the woods yet’:
Eskom spent R8.51 billion between 1 April and 19 December this year on power generation, approximately R16.06 billion or 67.7% less than the R24.32 billion spent during the same period last year, according to Electricity and Energy Minister Kgosientsho Ramokgopa.
Giving an overview of the power utility’s performance this year, Ramokgopa told a media briefing on Monday that South Africa had recorded 272 straight days without load-shedding — the longest stretch of uninterrupted power supply in five years — but cautioned that the country had not yet put the rolling blackouts permanently behind it.
“We are within touching distance of the resolution of load-shedding but we are not necessarily out of the woods,” he said.
“Even though we’re seeing the kind of phenomenal performance that we’re seeing, it is important that we continue to fix our eyes on the bouncing ball, and that bouncing ball is to ensure that we end load-shedding, and then in the long term, to ensure that we are able to provide the sufficient head space for the South African economy to grow.”
“We want to make it just an abnormal conversation for us to even have a discussion about 272 days of no load shedding … It’s an expectation that there shouldn’t be load-shedding in a most industrialised economy such as ours.”
He said the country would bring on stream different types of technologies “to ensure that we are able to achieve … our decarbonisation ambitions”, noting that 80% of South Africa’s generation capacity still comes from fossil fuels.
“We’ve got a responsibility that we are able to address issues of air quality, which has got significant health implications for those people who are living within the immediate proximity … of these power stations,” he said.
“We also have a responsibility to ensure that we reduce the CO? (carbon dioxide) emissions as part of that global agenda of addressing the scourge of climate change.”
Ramokgopa said another key milestone for Eskom was that the utility had been able to reduce its unplanned capacity loss factor (UCLF) — essentially, the degree to which its units fail on their own and cannot perform efficiently.
“The intention there is to bring down that number. Once you bring down that number of the UCLF it means then we have more megawatts on the grid… This time last year, we were sitting at about 33.1% UCLF, now we’re sitting at 24.9 UCLF. What that means is that we’ve got generating capacity on the grid, and it’s as a result of the sterling work that the team has been able to achieve.”
He said the energy availability factor (EAF) — the efficiency of the performance of the grid in its totality — had averaged 62.55% from 1 April to 19 December, an improvement from about 55.24% last year.
“As a result of this performance, we have been able to save about R16.06 billion just from stopping us from burning diesel,” Ramokgopa said.
“This is significant, because once we are able to reduce the cost associated with diesel, it means that Eskom is becoming a more efficient generator of electricity … If we are able to sustain this over a period of time … we’re able to pass all this benefit to the end consumer.”
“Our ambition for the EAF for the financial year 2025 (is that) we want to achieve 70%,” he said, stating that this would be achieved through new generation capacity and the recovery of some units at Eskom’s power stations that have been out.
“70% EAF is not an arbitrary number. It’s a number that is derived from … engineering science … We know that we have the skills to get it to that level, and that’s the level of confidence that we have.
Ramokgopa said one of the targets for next year would be a revised strategy to ensure that South Africa achieves its goal of providing universal access to electricity by 2030, adding that it was unacceptable that after “30 years of a democratic government, we have not achieved universal access”.
Cracking the code of liquidity: why it’s the beating heart of forex and crypto markets:
When it comes to financial markets, liquidity is the unsung hero. It’s the oil that keeps the engine running, the magic that turns assets into cash and makes transactions seamless. Whether you’re swapping dollars for euros or diving into the world of Bitcoin, understanding liquidity is key to navigating the trading seas with confidence. Let’s unpack why liquidity is so crucial in forex and crypto markets and how it influences every trade you make.
Liquidity in Simple Terms
Liquidity is how easily an asset can be bought or sold without dramatically changing its price. Imagine trying to sell a luxury yacht in the middle of nowhere. It might take ages to find a buyer willing to pay your asking price. That’s low liquidity. Now, picture selling a popular mobile phone model in a bustling market. Easy, right? That’s high liquidity in action.
In the forex market, liquidity is sky-high. With a daily trading volume of over $ 7.5 trillion (according to the Bank for International Settlements), forex is the most liquid market in the world. Traders can enter and exit positions with ease, and price slippage is minimal.
Crypto markets, on the other hand, can be a mixed bag. While big players like Bitcoin and Ethereum enjoy decent liquidity, lesser-known altcoins can leave traders stranded, waiting for a buyer or seller.
Why Liquidity Matters in Forex
Forex is all about efficiency. With liquidity at its peak, the forex market lets traders enjoy narrow spreads (the difference between bid and ask prices). Narrow spreads mean you get better deals, whether you’re buying or selling.
High liquidity also makes forex markets less volatile. Sure, currency pairs move, but they don’t spiral into chaos because there’s always someone on the other side of the trade. If you’re trading EUR/USD, for instance, you can count on deep liquidity to back your moves.
For traders, this translates to more predictable outcomes and fewer surprises. The stability of high liquidity lets you plan your strategy with confidence, knowing you’re not at the mercy of wild swings.
The Crypto Liquidity Puzzle
Crypto markets don’t have the luxury of being as mature as forex. While Bitcoin boasts a market cap exceeding $ 500 billion and trades round the clock, its liquidity pales compared to major currencies like the US dollar or the euro.
For newer coins, the situation gets trickier. You might be holding the next “moonshot” altcoin, but if no one’s trading it, selling it for a fair price becomes a headache. Liquidity gaps in crypto markets often lead to higher volatility, which can be a blessing or a curse depending on your risk appetite.
Interestingly, crypto liquidity is heavily influenced by trading platforms. The more popular and trusted a platform, the better its liquidity. Platforms like Binance and Coinbase dominate because they attract both retail and institutional traders, creating an ecosystem of steady buying and selling.
How Exness Makes Trading Easier
Speaking of trading platforms, Exness has carved a reputation for itself in the forex and crypto markets. With competitive spreads, lightning-fast execution, and a robust infrastructure, it’s a go-to for traders looking for reliability. The platform’s deep liquidity pools ensure that you can trade confidently, knowing your positions won’t suffer from unnecessary slippage.
The term Exness reviews often pops up in trading circles and for good reason. Users praise its intuitive interface and seamless experience. Whether you’re trading forex or dabbling in crypto, Exness delivers the kind of liquidity that keeps your trades smooth and stress-free.
Liquidity’s Role in Risk Management
Liquidity isn’t just about convenience. It’s a vital tool for managing risk. In a liquid market, you can exit positions quickly if the market moves against you. This can be a lifesaver, especially in fast-moving environments where seconds count.
Take forex again. Because liquidity is so high, you can set tight stop-loss orders, ensuring you’re protected against major losses. In crypto, where liquidity varies, the story is different. If you’re trading a low-liquidity coin, even a small market order can trigger significant price swings. This makes risk management trickier, requiring extra vigilance.
What Traders Should Keep in Mind
Liquidity isn’t static. It fluctuates based on time, market conditions, and asset popularity. Forex liquidity peaks during overlapping trading sessions, like when London and New York are both active. In crypto, liquidity can spike during big news events or announcements.
Smart traders know how to work with these fluctuations. Timing your trades during high-liquidity periods can make a world of difference, reducing costs and improving execution.
The Bottom Line
Liquidity is the lifeblood of any market. In forex, it provides the stability and efficiency traders crave. In crypto, it’s a bit of a rollercoaster, offering both challenges and opportunities. Whatever market you’re in, understanding liquidity gives you an edge, helping you navigate with precision and purpose.
For traders, the key is aligning with platforms that prioritise liquidity, like Exness. Armed with this knowledge, you’re not just a participant in the market; you’re a force to be reckoned with. So, the next time you place a trade, remember: that liquidity isn’t just a number. It’s the silent power behind every successful move.
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