EBRD’S Gender ProgramEBRD’S Gender Program

Lesia HalivLesia Haliv

October 2008 October 2008

AgendaAgenda

EBRD mandate

EBRD – Gender Promotion Today

Moving forward

What is the EBRD?What is the EBRD?

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International financial institution, promotes transition to market economies in 28 countries from central Europe to central Asia

Owned by 61 countries and two inter-governmental institutions

Capital base of €20 billion

Cumulative commitments €36.9 billion

Unaudited December 2007

What are the EBRD’s objectives?What are the EBRD’s objectives?

To promote transition to market economies by investing mainly in the private sector

To mobilise significant foreign direct investment

To support privatisation, restructuring and better municipal services to improve people’s lives

To encourage environmentally sound and sustainable development

The EBRD todayThe EBRD today

Signatory to Millennium Development Goals and Recipient of 2008 Gender Torch

Revised Environmental and Social Policy– Included gender equality as important objectives to be achieved through projects

New 2008 Gender Action Plan

Banking operations (illustrations)– MSE – lending and institution building

– Equity operations (Boards)

Business Advisory Services to Entrepreneurs

Women in Business networking event at AGM

MSEMSE Gender ImpactGender Impact

Microfinance has been widely credited for empowering women by increasing their contribution to household income, the value of their assets, and control over decisions that affect their lives.

Since 1997 the Bank has invested € 1 billion under its Micro Enterprise Lending Programmes with €573 million outstanding as of 2007.

Small businesses are the pillars of a vibrant market economy. Not only do they create jobs, they add to a more diverse and democratic society.

Innovative Tajik Agricultural Financing Facility will also provide support to women who manage some of the smallest farms.

Eastern Europe and Caucasus (2007)Eastern Europe and Caucasus (2007)

41%

59%

Figures are gathered from portfolio reports provided by 11 FIs across the region

Number of Loans Disbursed Volume of Loans Disbursed

68%

32%Women Borrowers

Women Borrowers

Central Asia (2007)Central Asia (2007)

36%

64%

Figures are gathered from portfolio reports provided by 13 FIs across the region

Number of Loans Disbursed Volume of Loans Disbursed

50%

50%

Women Borrowers Women Borrowers

Sample Outreach of Central Asian Sample Outreach of Central Asian MFIs by country* (2005)MFIs by country* (2005)

* Microfinance Institutions in Central Asia: Benchmarks and Analysis 2005 – Medians (Microfinance Institution exchange, Inc)** The 22 respondents alone cover more than half of the borrowers

Central Asia Number of Active Borrowers

Percent of Women Borrowers

Gross Loan Portfolio (USD)

Kazakhstan (4) 7,329 76.4% 6,219,098

Kyrgyzstan (4) 18,572 61.3% 9,445,841

Tajikistan (9) 2,659 53.6% 989,172

Uzbekistan (5) 3,775 93.7% 381,354

Trade Facilitation Programme (TFP) Trade Facilitation Programme (TFP) TrainingTraining

Trade Finance training Kazakhstan UCP 600 Turkmeninstan

Trade Finance training Mongolia

Trade Finance training Russia

Participants in Caucasus TFP Training Services Participants in Caucasus TFP Training Services (18 women out of 28 participants) – May 2007(18 women out of 28 participants) – May 2007

Head of International Operations

Deputy Head of Loans and Resources

Settlements Manager

Head of International Relations and Documentary Business Department

Chief Specialist of International Relations and Documentary Business Department

Heads of International Relations Division (2)

Economist of Trade Finance Division

Head of LC and Guarantee Division

Economist of LC and Guarantee Division

Economist, Correspondent Banking Division

Trade Finance Specialist

Junior Trade Finance Specialist

Specialist of International Relations Division

Specialist on International Documentary Operations

Head of Corporate Services

Trade Finance Specialist

Operations Manager

BAS Women Entrepreneurs Initiative BAS Women Entrepreneurs Initiative began in Azerbaijanbegan in Azerbaijan

Business Advisory Service (‘BAS’) programmes, through funding local consultants, assist enterprises enhance their competitiveness, marketing and financial management, quality management systems and strategic business planning.

The BAS Women Entrepreneurs Initiative began in Azerbaijan in 2004 with a women workshop run in cooperation with the Soros Foundation

Contacts with 20 women grew into an informal network of Women in Business, starting new businesses and helping the growth of established women-owned enterprises

37 SMEs assisted in future growth in the regions of Guba, Sumgayit, Ganja and others

40 jobs were created, 20 in the newly started enterprises, 20 due to growth achieved in others

The Women Entrepreneurs Initiative in the South The Women Entrepreneurs Initiative in the South Caucasus funded by the Canadian International Caucasus funded by the Canadian International Development Agency (2005)Development Agency (2005)

Objectives:

• Support women identified as having feasible business ideas to enable business start-ups and help the growth of established women-owned enterprises;

• Contribute to the creation of more formal “Women Networks”, in regions where there are embryonic commercial activities of women (for example in the tourism or food processing sector);

• Work closely with the EBRD to improve access to micro lending institutions for these women, based on business plans developed in workshops.

Obstacles to Women EntrepreneurshipObstacles to Women Entrepreneurship

In the business preparation phase: Lack of information concerning the registration of enterprises Lack of knowledge and experience in a market economy Lack of business training and confidence

During the business start-up period: Difficulties in obtaining credit, largely due to lack of collateral Lack of ongoing support Confidence collapses as soon as problems are encountered No role models to show that women can succeed

Challenges Remain in the CaucusesChallenges Remain in the Caucuses

Most women still tend to stay within their comfort zone, in traditional female industries. Upon completion of the “Start Your Business” workshops, most women, even from the younger generation, wanted to start beauty shops, fashion boutiques, or restaurants.

Offering one-off training is an important entry point, yet ongoing support to women is required to ensure long-term sustainability, business growth and to contribute to confidence building.

Several workshops conducted during the first phase were aimed at developing suitable business plans to ease access to finance. However, the results in terms of obtaining credit were very limited.

The unique approach of the BAS model is to work directly with entrepreneurs based on the belief that being economically self-reliant, women will increase their self-esteem and confidence to play a more active role in all aspects of life.

Moving forwardMoving forward

Implementing Gender Action Plan

Hiring Gender Action Plan Coordinator

Pilot Projects in Romania, Kyrgyzstan and Georgia

Continued financing of MSMEs and institution building