Goldman Sachs commits billions to impact black women's lives
The Goldman Sachs Group has unveiled an investment initiative of more than US$10 billion to advance racial equity and economic opportunity by investing in Black women.
In partnership with Black women-led organizations, financial institutions and other partners, Goldman’s will commit $10 billion in direct investment capital and $100 million in philanthropic capital over the next decade to address the gender and racial biases that Black women continue to face, and which has been made worse by the pandemic.
The goal? To significantly impact the lives of at least 1 million Black women by 2030.
The first-of-its-kind investment in Black women, the initiative, One Million Black Women, has been described as “transformational” by the CEO of the National Coalition on Black Civic Participation, Melanie Campbell, due to its “potential to materially impact the lives of Black women, their families and communities across the country”.
It will be carried out via direct investing and grants, with some partnerships already underway, for example Goldman’s is partnering with Hope Enterprise Corporation, mayors and HBCUs across the American South to distribute and lend capital.
“Black women are at the center of this investment strategy because we know that capital has the power to affect change, and we know that Black women have the power to transform communities,” says Margaret Anadu, Global Head of Sustainability and Impact for Goldman Sachs Asset Management. “If we can make our economy work for Black women, we all benefit.”
Black women have potential to create millions of US jobs
According to Goldman Sachs’ newly published research, Black Womenomics, no investment could have a bigger impact than unlocking the economic potential of Black women with research showing that reducing the earnings gap for Black women has the potential to create some 1.2 – 1.7 million US jobs, and increase the annual U.S. GDP by US$300-450 billion in current dollars.
In fact, black women “are starting businesses faster than anyone elese in the U.S.”, states David M. Solomon, Goldman’s CEO.
With this initiative, Goldman Sachs builds on its two decades of history of investing female entrepreneurs and underserved communities.