The Goldman Sachs Group, Inc has announced a new 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 organisations, financial institutions and other partners, Goldman Sachs will commit $10 billion in direct investment capital and $100 million in philanthropic capital over the next decade to address the dual disproportionate gender and racial biases that Black women have faced for generations, which have only been exacerbated by the pandemic. 

The initiative, ‘One Million Black Women;, is named for and guided by the goal of impacting the lives of at least one million Black women by 2030.

“This initiative is transformational,” said Melanie Campbell, convener of the Black Women’s Roundtable and president and CEO of the National Coalition on Black Civic Participation, a partner with Goldman Sachs on the programme.

“What Goldman Sachs is doing has the potential to materially impact the lives of Black women, their families and communities across the country.”

The investment will be grounded in the voices and experiences of Black women.

Black women leaders across Goldman Sachs developed and will continue to lead this initiative alongside an Advisory Council of Black leaders, including:

• Melissa L. Bradley
• Rosalind G. Brewer
• Bill Bynum
• Melanie Campbell
• Thelma Golden
• Lisa P. Jackson
• Valerie B. Jarrett
• Lisa Mensah
• Dr. Valerie Montgomery Rice
• Marc H. Morial
• Dr. Dambisa Moyo
• Issa Rae
• Secretary Condoleezza Rice
• Dr. Ruth J. Simmons
• Darren Walker

“Our newly published research, Black Womenomics, suggests that no investment could have a bigger impact than unlocking the economic potential of Black women,” said David M. Solomon, chairman and CEO of Goldman Sachs.

“In the face of significant disparities, they’ve shown admirable resilience, especially as they’re starting businesses faster than anyone else in the US. Building on our 20-year history of investing in female entrepreneurs and underserved communities we are now proud to partner with Black female-led organisations and an outstanding advisory council to invest in opportunities to unlock their economic and leadership potential.”

Goldman Sachs has joined with partner organisations on listening sessions to understand the barriers to opportunity Black women face and how targeted investments can address these barriers. It is being shaped by Black women within Goldman Sachs, alumna of the 10,000 Small Businesses programme and partnerships with Black women’s organisations including Alpha Kappa Alpha Sorority, Inc., Delta Sigma Theta Sorority, Inc., Zeta Phi Beta Sorority, Inc., Sigma Gamma Rho Sorority, Inc., National Council of Negro Women, Power Rising, Black Women’s Roundtable and the National Coalition on Black Civic Participation, Walker’s Legacy Foundation, Sistahs in Business Expo, and The Links, Inc.

Black Womenomics estimates that reducing the earnings gap for Black women has the potential to create 1.2 to 1.7 million US jobs, and increase the annual U.S. GDP by US$$300-US$450 billion in current dollars. The research also underscores the chasm and has informed the areas in which the firm’s initial investments will be made: housing, healthcare, access to capital, education, job creation and workforce advancement, digital connectivity and financial health.

“Black women are at the centre 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,” said 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.”

This first-of-its-kind investment in Black women will be done through direct investing and grants. Initial investments are under way through a variety of strategic channels. In just one example of a wide range of investments, Goldman Sachs is partnering with Hope Enterprise Corporation, mayors and HBCUs – organisations with significant ties to the communities in which they operate – across the American South to distribute and lend capital.

“One Million Black Women will be central to our inclusive growth priorities and goals over the next decade,” said Dina Powell McCormick, global head of sustainability and inclusive growth for Goldman Sachs.

“The initiative will be guided by partners with whom we have worked for nearly two decades to build our programs that impact underserved communities and women across the United States.”

Goldman Sachs said transparency and measurement are central to its commitment and that it will be tracking investments made and sharing the results publicly through annual updates and periodic convenings.

“Let there be no doubt, investing in Black women has a massive ripple effect on our communities and economies,” said Asahi Pompey, global head of corporate engagement and president of the Goldman Sachs Foundation. “This initiative recognises the power of Black women and puts their needs and voices at the centre.”