By 
In a transformative move to boost financial access for women entrepreneurs in Nigeria, the African Development Bank Group’s Affirmative Finance Action for Women in Africa (AFAWA) program has supported a new $50 million financing agreement. The deal, signed between the African Guarantee Fund and the Bank of Industry at the Africa Investment Forum in Rabat, is set to empower women-led enterprises in Nigeria through a combination of financial and business support.
Supporting Women Entrepreneurs
The agreement is part of the AFAWA Guarantee for Growth program, which aims to bridge the financing gap for African women entrepreneurs by providing de-risking mechanisms and technical assistance. The Bank of Industry, Nigeria’s largest development financing institution, will phase out the loan portfolio guarantee in three tranches over a decade, significantly scaling up lending to small and medium enterprises (SMEs) across the country.
Dr. Beth Dunford, African Development Bank Vice President for Agriculture, Human, and Social Development, emphasized the broader impact of the initiative:
“This is not just a financial transaction. It is a beacon of hope and progress for African businesses, particularly those led by women.”
Potential Benefits for Female Entrepreneurs
- Increased Access to Capital:
- Women-led businesses will gain improved access to financing, a critical barrier many face in scaling their enterprises.
- The partnership is expected to unlock up to $100 million in additional funding for SMEs, with a strong focus on women-owned enterprises.
- Technical Support and De-risking Mechanisms:
- Entrepreneurs will benefit from tailored technical assistance and reduced risks associated with lending to women-led businesses, enhancing their chances of success.
- Focus on Sustainability and Innovation:
- The program prioritizes “green businesses” that align with environmental sustainability and gender equity, fostering innovative business models among women.
- Long-term Economic Impact:
- By empowering women entrepreneurs, the agreement aims to catalyze Nigeria’s industrialization, create jobs, and contribute to overall economic growth.
A Strategic Partnership for Progress
The African Guarantee Fund, which implements the AFAWA Guarantee for Growth program, hailed the deal as a milestone. Jules Ngankam, CEO of the African Guarantee Fund Group, noted:
“This transaction will significantly impact Nigeria’s economy by unlocking financing for SMEs, particularly women-led businesses, youth-driven enterprises, and environmentally sustainable ventures.”
Dr. Olasupo Olusi, Managing Director of the Bank of Industry, highlighted the alignment with President Bola Tinubu’s Renewed Hope agenda, emphasizing gender equity, innovation, and sustainable growth as key drivers of the initiative.
AFAWA’s Track Record
Through the African Development Bank, AFAWA has already unlocked over $2.4 billion in lending to women-led SMEs across 44 African countries. The initiative has partnered with 185 financial institutions and benefited over 18,600 women entrepreneurs.
A Path Forward
This landmark agreement signifies a long-term strategic relationship between AFAWA, the African Guarantee Fund, and the Bank of Industry. It blends their missions to address the persistent financing gap for women entrepreneurs, promote gender equity, and foster Nigeria’s economic transformation.
For Nigerian women entrepreneurs, this program offers a golden opportunity to access capital, receive technical support, and thrive in a more inclusive and supportive business environment.
Learn more about the AFAWA initiative and opportunities for women-led businesses by visiting the African Development Bank’s official website.
