The African Guarantee Fund (AGF) and the Visa Foundation have teamed up to offer a $2 million grant aimed at boosting financial support for women-led and women-owned small and medium-sized enterprises (WSMEs) across Africa. This partnership will strengthen the Affirmative Finance Action for Women in Africa (AFAWA) Guarantee for Growth program, which addresses the systemic challenges that limit women entrepreneurs’ access to capital.
While women represent 58% of Africa’s self-employed population and contribute nearly 20% to the continent’s GDP, they still face a significant financing gap, estimated at $49 billion. Launched by the African Development Bank, the AFAWA initiative seeks to bridge 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 collaboration goes beyond financial inclusion. It aims to drive broader economic and social transformation, as women entrepreneurs are known to reinvest in their families and communities, making this initiative crucial for sustainable development.
The grant will enable AGF to offer loan guarantees and technical support to its Partner Financial Institutions (PFIs), encouraging them to increase their lending to women entrepreneurs. This initiative is expected to create jobs and enhance business resilience across the continent.
Visa Foundation President, Graham Macmillan, expressed strong support for the partnership, highlighting its alignment with the Foundation’s mission to foster financial inclusion and support entrepreneurs globally.
Through the AFAWA initiative, AGF has already facilitated nearly $1 billion in loans to over 14,000 women-led businesses across Africa. The Visa Foundation’s grant is set to expand these efforts, unlocking additional private capital and creating even more opportunities for women-owned businesses.
This partnership marks a significant milestone in closing the gender financing gap and empowering women entrepreneurs to play a more significant role in Africa’s economic growth.
