By Editor
The African Development Bank Group’s Affirmative Finance Action for Women in Africa (AFAWA) program has pledged $50 million to support women-led enterprises in Nigeria. This move is part of a broader effort to reduce the financing gap faced by African women entrepreneurs compared to their male counterparts.
The loan deal was signed between the African Guarantee Fund and the Bank of Industry (BOI) at the Africa Investment Forum in Rabat on December 5. The transaction will be phased out in three tranches over ten years, significantly scaling up lending to small and medium enterprises in Nigeria.
The facility will support women-led businesses through the AFAWA Guarantee for Growth program that provides financing to women entrepreneurs through de-risking and technical assistance measures. The African Guarantee Fund implements the program.
According to Beth Dunford, African Development Bank’s Vice President for Agriculture, Human, and Social Development, “This strategic partnership illustrates our commitment to empowering women entrepreneurs and fostering economic growth in Nigeria”.
The partnership includes a comprehensive risk-sharing mechanism that focuses on supporting micro, small, and medium enterprises, women-owned enterprises, and ‘green businesses’ that promote environmental sustainability and gender equity.
Jules Ngankam, CEO of the African Guarantee Fund Group, noted that this transaction will significantly impact Nigeria’s economy by unlocking up to $100 million in financing for small and medium enterprises.
This agreement marks the beginning of a long-term strategic relationship between AFAWA, the African Guarantee Fund, and the Bank of Industry. The partnership aims to promote sustainable growth, gender equity, innovation, and advance credit to small and medium enterprises in Nigeria, aligning with President Bola Tinubu’s government’s Renewed Hope agenda.
Through the African Development Bank, AFAWA has approved over $2.4 billion in lending for Africa’s women-led small and medium enterprises, partnering with 185 financial institutions across 44 African countries.
