The African Guarantee Fund (AGF) and the Visa Foundation have launched a $2 million grant initiative to expand financial access for women-led and women-owned small and medium-sized enterprises (WSMEs) across Africa—a critical step toward closing the persistent funding gap that limits their growth and economic impact. The partnership will strengthen the Affirmative Finance Action for Women in Africa (AFAWA) Guarantee for Growth program, an initiative designed to overcome systemic barriers that restrict women entrepreneurs from securing credit and scaling their businesses.
Despite representing 58% of Africa’s self-employed population and contributing nearly 20% of the continent’s GDP, women-led SMEs Africa face a financing shortfall estimated at $49 billion. Traditional lending institutions often perceive women-owned businesses as higher risk due to limited collateral, informal structures, and socio-cultural constraints—factors that this new initiative aims to counter through targeted guarantees and capacity-building support.
The AFAWA program, originally launched by the African Development Bank, uses risk-sharing mechanisms to incentivize banks and microfinance institutions to lend more confidently to women entrepreneurs. With this latest grant, AGF will provide loan guarantees and technical assistance to its network of Partner Financial Institutions (PFIs), enabling them to increase lending volumes while managing risk effectively. The goal is not only to unlock capital but also to build long-term resilience among women-led enterprises and stimulate job creation across sectors.
Jules Ngankam, CEO of the African Guarantee Fund, emphasized that the impact of supporting women entrepreneurs extends far beyond individual businesses. “This collaboration is about more than financial inclusion—it’s about driving inclusive economic transformation,” he said. “When women succeed in business, they reinvest in their families, educate their children, and uplift entire communities. That multiplier effect makes this initiative essential for sustainable development.”
Graham Macmillan, President of the Visa Foundation, affirmed the organization’s commitment to advancing economic empowerment for women globally. “Supporting women entrepreneurs is central to our mission,” he said. “By partnering with AGF on AFAWA, we are helping to create a financial ecosystem where women-led SMEs Africa can thrive, innovate, and contribute meaningfully to national economies.”
To date, the AFAWA Guarantee for Growth program has already facilitated close to $1 billion in loans to over 14,000 women-led businesses across the continent. This new infusion of funding from the Visa Foundation is expected to leverage additional private-sector investment, amplifying its reach and deepening its impact.
By combining financial guarantees with institutional capacity building, the initiative addresses both supply-side constraints—such as lender hesitation—and demand-side challenges, including gaps in financial literacy and business management skills among women entrepreneurs.
As Africa seeks to build more resilient, equitable economies, empowering women-led SMEs Africa is emerging as one of the most effective strategies for inclusive growth. This partnership marks a significant milestone in shifting the landscape—from one where women struggle to access capital, to one where they are recognized as vital engines of innovation, employment, and community development.
With growing momentum behind gender-lens investing and inclusive finance, initiatives like this signal a turning point: not just in who gets funded—but in who shapes the future of African economies.
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