The African Guarantee Fund (AGF) has joined forces with the Visa Foundation to establish a $2 million grant aimed at enhancing financial support for women-owned and led small and medium-sized enterprises (WSMEs) across Africa.
This collaboration seeks to expand the Affirmative Finance Action for Women in Africa (AFAWA) Guarantee for Growth programme, which is designed to tackle systemic inequalities and eliminate the barriers that hinder women entrepreneurs from accessing the capital necessary for business growth.
The CEO of AGF, Jules Ngankam, highlighted that by concentrating on women entrepreneurs, the initiative not only promotes financial inclusion but also fosters broader economic and social transformation. Women are known to reinvest significantly in their families and communities, making this support crucial.
The grant is exclusively allocated to the AFAWA initiative, reinforcing AGF’s commitment to enhancing the capabilities of women entrepreneurs. Ngankam noted that in addition to providing guarantees, the programme will include technical assistance from their Capacity Development programme, aimed at building capacity and facilitating large-scale lending. This approach is expected to drive job creation and enhance business resilience across the continent.
Through a mix of loan guarantees and technical assistance, the partnership will empower AGF’s Partner Financial Institutions (PFIs) to increase their lending to women entrepreneurs substantially. This support aims to close the gender financing gap, unlock private capital, and strengthen capacity among both PFIs and WSMEs. The backing from Visa Foundation will help expand AFAWA’s solutions, addressing the obstacles faced by women entrepreneurs and creating pathways for sustainable growth.
Graham Macmillan, president of Visa Foundation, expressed enthusiasm about the partnership, recognising AGF as a leader in empowering women entrepreneurs. He emphasised that their commitment to financial inclusion aligns with Visa Foundation’s mission to help entrepreneurs thrive globally.