Signing a loan agreement to women’s financial inclusion in India

 Signing a loan agreement to women’s financial inclusion in India

(Private Sector Investment Finance): Improving women’s access to finance

 On August 25th, 2021, the Japan International Cooperation Agency (JICA) signed a $50 million loan agreement with Northern Arc Capital (NAC), an Indian financial institution, to fund non-bank financial entities that provide financial services to women. This loan will be provided through co-financing with the United States International Development Finance Corporation (USDFC) based on the Facility for Accelerating Financial Inclusion in Asia (FAIA) announced on March 27, 2020.

In the Gender Gap Index, which measures gender inequalities, India is ranked 112th out of 153 countries (Global Gender Gap Report 2020), representing a country with a huge gender imbalance. In particular, opportunities for women to participate in economic activities are limited. It is estimated that over 40% of the country’s female population, or about 280 million women, have no access to financial services. In response to these circumstances, the Government of India has identified the improvement of women’s access to finance as one of its priority issues. 

 

Non-Banking Financial Companies (NBFCs), which have branches in provincial areas and extensively provide loans to individuals, play an important role in this regard. It is, therefore, important to create an environment in which NBFCs are able to obtain stable financing. This project aims to improve women’s financial access in the country by providing loans to NAC, which supports the NBFC sector in procuring funds.

At the signing of the loan agreement, Kshama Fernandes, Managing Director and CEO of NAC, said, “We are excited to partner with JICA to further our mission of catering to the diverse credit requirements of underserved households and businesses. The usage of proceeds will be towards promoting women entrepreneurship and employment, an important target area for the company.”

Keiichiro Nakazawa, Senior Vice President of JICA, said “NAC is one of the unique and important financial institutions to support funding of Indian NBFC sector, which is a key to promote financial inclusion in India. We expect more Indian women to have accesses to financial service through the partnership with NAC. Also, we are delighted that this loan is the first co-financing with USDFC in India.

Since its establishment in 2008, NAC has been a platform in the financial services sector, working with a large network of financial institution partners and fintechs as well as small businesses and individuals.

In December 2019, Sumitomo Mitsui Banking Corporation invested in NAC, aiming to collaborate in enhancing priority sector lending, such as for small and medium enterprises (SMEs) designated by the Government of India.

JICA’s initiative will improve women’s access to finance in the country by providing loans to non-bank financial entities via NAC, that offer financial services for women, thereby contributing to the rectification of gender inequalities and sustainable economic growth in the country. It will also contribute to SDGs (Sustainable Development Goals) 1, 5, 8, and 17 as an initiative that supports the “G7 2X Challenge: Finance for Women,” which was announced at the G7 Summit 2021 in Cornwall to be implemented in a new phase until 2022.

 

(Note) The “G7 2X Challenge: Financing for Women” is an initiative in which development financial organizations from G7 countries utilize their own funding to encourage private sector investment.  In doing so, it aims to mobilize $15 billion by 2022 to financially empower women, such as nurturing female entrepreneurs and business leaders, as well as promoting entry into the labor market. “2X” refers to doubling the amount of financing and effects on women.

Related Links

DFC’s press release “DFC Promotes Gender Equity in Financing Across India with $50 Million Investment”

2X CHALLENGE

Launching ' the G7 2X Challenge: Financing for Women' with Development Finance Institutions from G7 countries

On National Cleanliness Day, JICA starts

 On National Cleanliness Day, JICA starts “Achhi Aadat (Good Habit) Campaign” to promote hand washing, nail cleaning and other hygiene practices 

~ Achhi Aadat (Good Habit) to protect yourself and loved ones ~

 

Japan International Cooperation Agency (JICA) has launched the “Achhi Aadat (Good Habit)” Campaign in India, to raise awareness among 10 Crore people about the importance of hygiene practices for preventing the spread of COVID-19 and other infectious diseases. The campaign is to introduce an easy and practical approach to the hygiene and sanitation issues by promoting handwashing, nail cleaning and other hygiene practices such as wearing mask in a correct way.

JICA will roll out the campaign in partnership with Japanese companies and local nonprofit organizations for a period of one year from January 2021. The campaign will be implemented in both urban and rural areas with strong focus on the village communities, schools and hospitals where JICA has built relationships through cooperation. Self Employed Women’s Association (SEWA), a community based organization will play an important role in the community level activities of this campaign. 

To augment this campaign, JICA has also created a manga (cartoon) material named "Correct Handwashing" drawn by Japanese manga artist Ms. Kimidori Inoue, and it has been translated into Hindi and Tamil to extend the campaign to wider audience and better comprehension in local languages. Online events targeting schools and other public facilities will be carried out with the manga and animation. In addition, three Japanese companies are already on board as sponsors for this campaign. These companies are donating their hygiene related products for this campaign, such as the hand-washing station “SATO Tap” from LIXIL, nail clippers from Kai India, and disposable masks from Unicharm India.

Today, a launch event was held in Gram Vikas Samiti Surana, Village Surana, Ghaziabad, Uttar Pradesh, targeting approximately 20 children aged between 7 and 14, in cooperation with IJ Kakehashi, a company that is committed towards creating awareness for health, hygiene and environment. The event was held to celebrate National Cleanliness Day, that is observed every year on January 30^th to commemorate the death anniversary of Mahatma Gandhi. In the event, children learnt the importance of the routine practice of handwashing, nail cleaning and mask wearing while they also received hygiene products provided by the partner companies.

Speaking on the occasion, Mr. Katsuo Matsumoto, Chief Representative, JICA India said, “Through “Achhi Aadat Campaign”, JICA and partners will work together to establish hygienic practices for the health and welfare of people of India. National Cleanliness Day calls for environment cleanliness including maintaining high standards of cleanliness in our home, work place, roads/streets and public places. In the time of COVID-19, providing attention to personal hygiene is critical to keep good health. It is also in line with the spirit of Mahatma Gandhi, who taught people the importance of maintaining personal hygiene and encouraged people to change and get rid of dirty habits to keep good health. 

Hygienic practices will reduce the likelihood of other viral infections and not only COVID-19. Globally, number of children lose their lives because of diarrheal diseases and it is evidenced that washing hands with soap can reduce this risk drastically. COVID-19 crisis has brought about a momentum to change the people’s mindset about hygiene. We understand hygienic practices that becomes “lifelong good habit” will protect not only oneself but also protect the loved ones.”