Invest in women.
Invest in the world.
What is the 2X Challenge?
The 2X Challenge is a movement launched at the G7 Summit in Canada in 2018 to collectively mobilise $3 Billion in private sector investments in developing country markets over 3 years. This played a critical role in building the field of gender lens investing, mobilising a total of US$33.63 Billion to support gender equality and women’s economic empowerment since 2018 (2018-2023).
The G7 Leaders’ Summit 2024 in Italy welcomed the new commitment by Development and Multilateral Finance Institutions to invest at least US$20 Billion over three years (from 2024-2027) to advance measurable changes and financing directed to women’s empowerment. They also called upon other public and private actors to join the 2X Challenge.
Why invest in women?
Credit gap: Women SME’s worldwide face a $320 billion shortfall in access to credit despite women anecdotally having lower non-performing loan rates than men.
A multi-trillion dollar opportunity: According to a McKinsey study, closing the gender labor gap could add $28 trillion, or 26 percent, to annual global GDP in 2025.
The world’s largest emerging market: The female economy represents a market more than twice the size of India and China combined. By 2028, female consumers will control around $15 trillion of global consumer spending.
$28tn
OPPORTUNITY
Closing the gender labor gap could add $28 trillion, or 26 percent, to annual global GDP in 2025.
$15tn
OF CONSUMER SPENDING
By 2028, women consumers will control around $15 trillion of global consumer spending.
$320bn
SHORTFALL
This obtains despite women anecdotally having lower non-performing loan rates than men.
Members
“The U.S. is thrilled to accept the 2X Challenge to invest in the world’s women. DFC has prioritized investing in women because we understand that when women succeed, families succeed, communities succeed, and nations succeed. By joining forces with the G7 DFIs, we are sending a powerful message to the markets that by investing in women we can change the world.”
“The business case for investing in women is clear. We believe that this initiative can help set the standard for how investors can target capital and influence to ensure that investee businesses achieve gender-balanced boards and management teams, finance women entrepreneurs, provide women access to decent jobs and build gender-smart products and services that serve women customers across the value chain. All while at the same time creating high development impact.”
“Deposits and loans marked the beginning of a new phase, with an unpredicted commitment and an increasingly proactive role in the next three years supporting economic growth and sustainable development.”
“Promotion of women’s business and entrepreneurship is the key to sustaining and to maximizing the social and economic development. JICA is committed to further investing in women’s economic empowerment by exploring innovative approaches in partnership with our diverse stakeholders, while we enhance our support to achieve women’s health and education, and the elimination of gender-based violence.”
“Women are the cornerstone of development as they spend more on family expenses that improve livelihoods, like nutrition, medicine, and education. Investments that improve the lives of women and girls have been shown to have an impact not only on the individual, but on their families, their communities, their local economies and, as a consequence, countries along with them.”
“Initiatives dedicated to women’s empowerment such as microfinance or education have demonstrated their economic and social benefits for society at large. Proparco is proud to participate in this ambitious and collective push intended to fuel the global momentum for inclusive growth and gender equality.”
“Women’s empowerment as leaders, entrepreneurs, valued workforce, consumers and community members – important goals to which development finance institutions can contribute with their investments. Within our 8 billion portfolio invested in almost 600 private companies, financial institutions, funds and project finance, we contribute among others to better working conditions with a particular focus on women in certain sectors. Together with our partners in the 2X Challenge we can boost gender-smart investments and innovation to empower women and girls worldwide!”
“JBIC welcomes the launch of the 2X Challenge initiatives, which enhance the empowerment of women entrepreneurs and in the workforce internationally under G7 framework. We are looking forward to collaborating with all 2X Challenge participants.”