A much talked about a new facility to support women entrepreneurs in developing countries is officially open for business, having raised $350 million in just five months.

In many [countries] investors wrongly believe that women-owned businesses are higher risk, but our experience in IFC is exactly the opposite. In fact as a group, women who run businesses pay back loans at higher rate than men. So for me as CEO of IFC, women-owned business is good business.

The World Bank has moved quickly to create the Women Entrepreneurs Finance Initiative, or We-Fi, which was officially launched during the institution’s annual meetings in Washington, D.C., last week.

Despite strong evidence showing the economic and social benefits of supporting women-led businesses, female entrepreneurs still face significant obstacles. Some 70 percent of women-owned, small and medium-size businesses in developing countries are starved of financing leading to an annual $300 billion annual credit deficit, according to the bank.

We-Fi has been structured as more than just a financing facility. While it will support projects and programs that offer financing to women-led businesses, a large chunk of its work will also drive reforms within governments to break down legal and regulatory barriers, which hold women back.

Read the full article by Sophie Edwards at Devex International Development