Bogotá, Colombia, September 19th, 2023. Banco Davivienda and the International Finance Corporation (IFC), a member of the World Bank, announced the closing of a financing agreement for US$300 million to promote gender inclusion and sustainability in Colombia.
The agreement between these two entities will contribute to sustainable growth by financing projects that promote economic prosperity, social inclusion (especially of women), and the transition towards a country with lower emissions, more efficient in the use of resources (such as energy and water) and more resilient to climate change.
Banco Davivienda and IFC seek to close the gaps in access to financial services for women, which, according to the latest Financial Inclusion Report from Banca de las Oportunidades and the Financial Superintendency of Colombia, stands at 88.7%. which is equivalent to 6.9 percentage points below the access of men. In terms of access to housing, the report also indicates that while 52 women out of every 10,000 inhabitants have housing loans, in the case of men the figure rises to 57.
With these resources, it is also expected to facilitate the conditions for more women to own businesses and strengthen existing businesses. "We want to continue contributing to women playing an increasingly leading role in building the country's business fabric and generating employment, which also has enormous benefits for their autonomy and the well-being of themselves and their families," said Javier Suárez, president of Davivienda.
According to the 2021 Dane Microbusiness Survey, the proportion of businesses owned by women is 37%, compared to 63% in the case of men, while businesses led by women have a shorter life span than those led by men. Thus, while 51.3% of businesses owned by men exceed 10 years of operation, this figure is only 31.8% in the case of women.
The agreement also contemplates the provision of advisory services to support Davivienda in strengthening its Diversity, Equity and Inclusion strategy, with the objective of identifying opportunities that facilitate access to financial services for people with disabilities and the LGBTI community.
"IFC's investment will contribute to reduce gender gaps and inequality, one of our key strategic objectives in Latin America and the Caribbean," said Elizabeth Martínez de Marcano, IFC director for Colombia, Mexico, Central America and the Caribbean. "This loan also includes an advisory component on financial inclusion for minority groups, particularly the LGBTI community and people with disabilities. We believe that this project will contribute to the inclusion of these sectors, historically underserved by banking".
Likewise, the loan contemplates the financing of renewable energy, water efficiency, construction and sustainable agriculture projects, which help achieve the goals set by the country in terms of reducing greenhouse gas emissions from 51% to 2030, until reaching zero net emissions in 2050.
"We celebrate alliances like the one we signed today with IFC, since they allow us to mobilize resources and actions towards closing access gaps for women and other underserved populations, as well as accompanying our clients in their sustainability transformation projects. We ratify our commitment: the world is our home, let's make it more prosperous, inclusive and green," Suárez concluded.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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