Empowering Change: Bridging Gender Equality and Economic Growth

Camryn Billett: Welcome to IFC Audio Stores. I'm your host, Camryn Billett. The World Bank Group recently released its Gender Strategy for the fiscal years of 2024 through 2030. It focuses on action, financing and programs to support foundational well-being, economic participation and women's leadership. The end goal? To end poverty for all on a livable planet. Today we are joined by IFC clients Matthias Berninger of Bayer and IFC partner Asahi Pompey of Goldman Sachs, to discuss concerns and solutions that will help IFC and World Bank empower women in leadership and increase gender equity.

Camryn: Mathias, Asahi, Welcome. 

Matthias Berninger: Thank you so much for having me. 

Asahi Pompey: Thank you so much. It's great to be with you. 

Camryn: So I'll start with you, Mathias. One of the key areas IFC focuses on is improving women's access to entrepreneurship and employment opportunities. How are you working with IFC to create more inclusive workspaces? 

Matthias: One of the areas we have been privileged to work with IFC for a couple of years now are these so-called Better Life Farming Centers, which we started in Asia, mainly in India, but they were so successful that we are now expanding them to other regions, including many countries in Eastern Africa. And the whole idea is to have a center in farming communities which smallholder farmers can use to have access to all kinds of advice, but also to agricultural inputs. The majority of all smallholder farmers are female. So, in other words, when we think about a farmer, smallholder farmer, it's very likely that this farmer is a "she” and that is something that also brings together the newer strategy of the World Bank Group to focus on food systems with the Gender Strategy.

Camryn: So from your experience, what challenges barriers and societal norms has Bayer faced in implementing its programs and engaging women farmers, producers and entrepreneurs? 

Matthias: The majority of smallholder farmers are females. The operators of those smallholder farmer-related Better Life Farming Centers tend to be men. So the challenge is how can you change that? And even though a little bit more than 10% sounds like a small progress, but given the cultural circumstances we talk about together with IFC, with the focus on gender equity, we have been able to reach many more female entrepreneurs through offering them an income opportunity in these farming years, often in addition to their farms. Also, we have been able to bring gender specific health related services into those better life farming centers, which again, is something very important given that there's a huge gender gap and access to health as well. But also let me talk about one risk that smallholder farmers face. You often think about weather as a risk or insecurity when it comes to property and ownership of land. One of the biggest risks for our customers when there are female smallholders is unwanted pregnancy. Now, Bayer is operating both in the agricultural and the health space, and one of the things we are working on is broadening the access to modern contraception for those communities. Today, more than 200 million women don't have access to modern family planning, even though they want it. And I think one of the very important things that needs to be embedded in the Gender Strategy of the World Bank Group, but also in the strategy to improve our trajectory on the achievement of the global goals on sustainable development is to ensure that we close this access gap.

 Camryn: Why do you think it's important for other companies and investors to prioritize gender equality in the workforce? And how can they follow in your footsteps? 

Matthias: Well, first of all, I think that this is not philanthropy. It's actually good business. But we are working with more than 50 million smallholder farmers around the world. And when I say working with them as we have a business relationship so they often buy our services, be it seeds, be it crop protection products, be it digital solutions and well, female farmers in the smaller space tend to be more successful than their male colleagues. So it is good business to invest in gender equity. That is true on the level of smallholder farmers. And yes, it's also true on the level of large corporations or large institutions like the World Bank Group. 

Camryn: Asahi, my next question is for you. Addressing the finance gaps across the capital spectrum is crucial for women's economic empowerment. What innovative approaches or strategies do you see on the horizon that could help bridge this gap? And how can stakeholders across sectors collaborate to implement these solutions effectively? 

Asahi: You know, one of the most effective tools is really to provide three things. One is incentives to provide loans to women, rebates as well as loan loss facilities. So Goldman Sachs and the IFC partner to create the Women Entrepreneurship Opportunity Facility, this was a facility that we had at the time Camryn, the audacious goal of mobilizing 600 million for capital for women. Ten years on, we've been able to mobilize $3 billion. And the way we've been able to do that is through the three things I mentioned incentives, rebates, loan loss reserves to really de-risk banks lending to women. And the results have been fantastic. 

Camryn: Why do you think it's important for other companies and investors to prioritize gender equality and entrepreneurship? And how can they follow in your footsteps? 

Asahi: I would argue that we see a double, triple or quadruple bottom line in investing in women. And here's what I mean. We find that when women thrive, the world thrives and it's proven by the data. One, women reinvest 90% of their earnings in either health care, education, children, their community. And so that level of and that's way beyond what men do. And so that level of reinvestment shows you that when women thrive, the community all around thrive. Second one, I point out we found of our 10,000 women entrepreneurs graduates that 90% of them mentor up to nine women and girls in their community. And so it's a rising tide that we see women stretching out their arms, giving back, helping because they don't a woman doesn't rise alone. She wants to take her village with her and she takes her village with her.

Camryn: So speaking of empowering women and success, what advice would you give to other women entrepreneurs or business leaders trying to overcome barriers in the workforce and in developing their own companies based on your own journey and your partnerships with IFC? Mathias, I'll start with you. 

Matthias: When you walk into the building we are in right now, you see historic pictures on black and white and a lot of men on those pictures. I believe any organization needs have clear targets to achieve gender parity. Without those targets, it's never going to happen. And the other thing is that gender equity is not something that you achieve at some time in the future. It's something you achieve one career decision at a time. So those of us who are privileged to lead teams and who are partake in hiring and staffing, those teams have a responsibility to achieve gender parity and gender equity in the way they choose talent and the way they support talent. But most importantly in the work environment, they create. 

Asahi: Two things, one is we've got to engage more men in these dialogs. And so I would say reaching out to more men. Men say they want to be part of the solution. Give them an opportunity to do that right. And so you'd like to be part of the solution. We're thrilled to hear it. And by the way, I've got a phenomenal business I'd like you to invest in. If you're not able to invest it, maybe you can refer me to someone who can. Knock on those doors, be transactional. Women have phenomenal relationships, but sometimes we don't make the ask, make the ask right around what you need, what's necessary in order for you to grow and develop. 

Camryn: I want to thank you both for sitting down with me for IFC Audio stories today and for not only accelerating our path to gender equality but for accelerating humanity. 

Camryn: As we discussed today, empowering women means empowering humanity and there are great economic and social benefits to investing in women. To learn more about how you can partner with IFC to achieve these gender initiatives, please visit IFC.org. Click on what we do and then gender. I am Camryn Billett and thank you for listening to IFC Audio stories.