The African Guarantee Fund (AGF) and the Visa Foundation have announced a $2 million grant agreement aimed at enhancing financial support for women-led and women-owned small and medium-sized enterprises (WSMEs) across Africa. This partnership will bolster the Affirmative Finance Action for Women in Africa (AFAWA) Guarantee for Growth program, which addresses systemic barriers that hinder women entrepreneurs from accessing capital.
Despite representing 58% of Africa’s self-employed population and contributing nearly 20% to the continent’s GDP, women entrepreneurs face an estimated $49 billion financing gap. The AFAWA initiative, launched by the African Development Bank, aims to close this gap by providing risk-sharing guarantees to financial institutions and offering capacity-building support to women entrepreneurs.
AGF CEO Jules Ngankam emphasized that this partnership not only promotes financial inclusion but also catalyzes broader economic and social transformation. He noted that women consistently reinvest in their families and communities, making this support crucial for sustainable development.
The grant will enable AGF to provide loan guarantees and technical assistance to its Partner Financial Institutions (PFIs), encouraging them to increase lending to women entrepreneurs. This approach is expected to drive job creation and enhance business resilience across the continent.
Visa Foundation President Graham Macmillan expressed enthusiasm about the partnership, highlighting that it aligns with the Foundation’s mission to advance financial inclusion and support entrepreneurs everywhere.
Through the AFAWA initiative, AGF has already unlocked nearly $1 billion in loans to more than 14,000 women-led businesses across Africa. The new grant from Visa Foundation is expected to scale these efforts, unlocking private capital and creating more opportunities for women-owned businesses.
This collaboration marks a significant step toward bridging the gender financing gap and empowering women entrepreneurs to contribute more substantially to Africa’s economic growth.
Read more on Tech Gist Africa:
KawiSafi Fund II Secures $90 Million to Accelerate Climate Solutions Across Africa
VentureSouq Closes $50 Million FinTech Fund II to Accelerate MENA Startup Growth
Yango Ventures’ $20M Fund Backs Kenyan Fintech Zanifu to Transform SME Credit Landscape
