Women-owned SMEs in Africa is to benefit from a US$1.3 to US$2 billion loan from the African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) African Guarantee Fund.
This, the Bank will do, by working with financial institutions to enhance the ability to lend to women with financial institutions in Cameroon, the Democratic Republic of Congo, Kenya, Rwanda, Tanzania, and Uganda already signing on to the programme.
According to a report on businessghana.com, the move signals the launch of AFAWA’s Guarantee for Growth (G4G) programme which aims to make available up to $3 billion in financing for women entrepreneurs through de-risking and technical assistance measures.
“As the implementing partner of AFAWA’s Guarantee for Growth program, we are already observing an increased appetite from banks for this innovative product that seeks to support women entrepreneurs. We have recently signed agreements with leading banks on the continent who are keen to increase their women SMEs portfolio,” Jules Ngankam, African Guarantee Fund’s Group CEO said.
He continued that the “AGF has always been cognizant of the importance of supporting women SMEs to enable them fully play their role as drivers of economic growth. We are glad the momentum is increasing and that banks are now willing to take on this particular business segment.”
Also, an average of 18,000 women in small and medium enterprises are expected to benefit while the Fund creates some 80,000 direct jobs.