If it’s true that it takes money to make money, then few companies know that better than Goldman Sachs, the iconic New York investment bank that got its start in 1869. As part of its mission to balance the financial playing field, Goldman has committed money and expertise to an initiative to empower Black women.
In April, Goldman Sachs announced that it had invested over $2.1 billion in the One Million Black Women program, launched two years ago.
The program’s goal is to positively impact the lives of 1 million Black women by 2030.
To help make that happen, Goldman will provide $10 billion in investment capital toward One Million Black Women and $100 million in philanthropic capital.
Photo Courtesy Goldman Sachs
The funding milestone was announced in conjunction with a group advisory board meeting, which includes Obama Foundation CEO Valerie Jarrett, Walgreens Boots Alliance CEO Roz Brewer, former Secretary of State Condoleezza Rice, and actress and producer Issa Rae.
The $2.1 billion investment is in addition to deploying $23 million in philanthropic capital to assist an estimated 215,000 Black women.
“Goldman Sachs is sending a powerful signal into the marketplace around Black women and saying there has been a misalignment of capital, in terms of capital dedicated to this group. We’re seeking to change that by putting our capital where our mouth is,” Asahi Pompey, global head of corporate engagement and president of the Goldman Sachs Foundation, told CNBC in an April interview.
Photo Courtesy Goldman Sachs
On average, the median net wealth of Black households is 85% less than that of White households, ESG News reported. According to Goldman’s One Million Black Women 2022 Impact Report, a single Black woman in the United States is only 8% as wealthy as a white man. Reducing the earnings and wealth gap can raise the U.S. annual GDP by as much as 2.1%, or $525 billion.
“This confirms what we already knew: Creating an inclusive and sustainable economy is not only the right thing to do—it’s an economic imperative,” Goldman Sachs CEO David Solomon wrote in the impact report.
Goldman’s strategy includes investments and philanthropic grants to drive impact in these areas:
- Affordable housing
- Job creation and workforce advancement
- Digital connectivity
- Education
- Access to capital
- Financial health
- Healthcare
Since launching the program two years ago, Goldman Sachs has conducted 60 listening sessions with 20,000 Black women and girls to learn more about where action is needed. The bank has also provided grant money to over 130 organizations, companies, and projects.
“Turbo boosting Black women entrepreneurs is a key part of the work that we do,” Pompey said. “We know they create jobs. When a Black woman entrepreneur is able to grow her business, she employs Black people in the community, she’s a leader in that community, she mentors individuals in that community. The ripple effect of investing in a Black woman entrepreneur is tremendous.”
Photo Courtesy Goldman Sachs
Goldman Sachs has spent the last few decades investing capital and resources in minority-owned businesses, Community Development Financial Institutions (CDFIs), and other mission-driven lenders through the bank’s Urban Investment Group. The group is part of Goldman’s Asset Management business and works with Black women entrepreneurs through its 10,000 Small Businesses and 10,000 Women programs.
As part of its work in this area, Goldman Sachs also recently launched OMBW: Black in Business, which provides support and resources to Black female sole entrepreneurs.
