OUR MISSION:
Invest in women. Invest in the world.
The 2X Challenge was launched at the G7 Summit 2018 as a bold commitment to inspire DFIs/IFIs and the broader private sector to invest in the world’s women.
#2XChallenge
What is the 2X Challenge?
The “2X Challenge” was launched at the G7 Summit 2018 as a commitment by DFIs to collectively mobilise $3 Billion in private sector investments in developing country markets over 3 years. These investments provide women with improved access to leadership opportunities, quality employment, finance, enterprise support, and products and services that enhance economic participation and access. The original target was 3x overachieved, with the DFIs investing $6.9 Billion with co-investments taking the total to $11.4 Billion.
At the G7 Summit 2021, 20 global DFIs and MDBs committed to a new and more ambitious target of $15 Billion for the period 2021-2022. This second round of the 2X Challenge has again exceeded its target and collectively raised gender lens investments totaling US$ 16.3 Billion, benefitting 473 businesses across all global emerging market regions. This brings the total investments under the 2X Challenge since 2018 to US$ 27.7 Billion.
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
Why is it called 2X?
2X refers to the multiplier effect of investing in women. The 2X Challenge will demonstrate that innovative financing catalyzes capital to advance gender equality.
What is a Development Finance Institution (DFI)?
Often backed by a national government, a DFI is a type of development bank that relies on private capital to invest in emerging markets and the developing world. As international development practices move away from a direct aid-based model, DFIs are playing a larger role to achieve the same developmental outcomes through investments.
How are investments calculated?
The 2X Challenge (2021-2022) total capital invested is a sum of 2X Challenge members’ self-reporting of 2X qualifying investments and accompanying co-investments from private, public, and other actors. The deal-by-deal reporting is checked by the Chair and validated by Dalberg.
Qualified investment values are reported by members and calculated in accordance with the June 2022 2X Challenge Reference Guide which has stricter requirements than the initiative's the prior phase. This includes the percentage of investments that can be counted if investees do not meet both direct and indirect criteria for relevant financial intermediaries investments.
Can I join the 2X Challenge?
The next round of the 2X Challenge (2024-2026) will unlock an unprecedented a multibillion-dollar target over a three-year period and welcome the full spectrum of investors and capital providers beyond DFIs and MDBs.
The new target and 2X Challenge members will be officially announced at the G7 Summit in June 2024. We invite capital allocators to join us in a new bold collective commitment under the 2X Challenge. Contact us to join the 2X Challenge.
2X Global is a global membership and field-building organisation for investors, capital providers, and intermediaries working in public and private markets, across both developed and emerging economies.
We engage our global network through a series of activities that advance intersectional investment agendas, scale the field, shift mindsets, and facilitate capital deployment. These include a series of Communities of Practice, educational forums, shared resources, certification and standards, and deal-sharing platforms.
With the support of our community in 2023, we will build on the success of the 2X Challenge that has raised over US$ 27 Billion and unlock even more gender-smart capital at scale as well as deepen the impact of capital flowing into crucial thematic investment areas.