The African Development Bank Group’s (AfDB) Affirmative Finance Action for Women in Africa (AFAWA) programme has expressed its support to a new $50 million financing agreement to provide financial and business support to Nigeria’s women-led enterprises.
The African Guarantee Fund (AGF) and Bank of Industry (BoI) signed the $50 million loan portfolio guarantee framework at the Africa Investment Forum last Thursday in Rabat, Morocco.
According to the agreement terms, the transaction will be phased out in three tranches over a ten-year period and will significantly scale up BoI’s lending to small and medium enterprises in the country.
Specifically, the deal will support women-led businesses in the country through the AFAWA Guarantee for Growth programme, which makes financing available for women entrepreneurs through de-risking and technical assistance measures while the AGF will implement the programme.
Commenting during the sealing of the pact, AfDB’s Vice President for Agriculture, Human and Social Development, Dr. Beth Dunford, said: “This strategic partnership illustrates the commitment of the African Development Bank, especially the Affirmative Finance Action for Women in Africa initiative, to empower women entrepreneurs and foster economic growth in Nigeria.
“This is not just a financial transaction aimed at supporting and catalysing the growth of small and medium enterprises in Nigeria – it is a beacon of hope and progress for African businesses, particularly for those led and owned by women,” she added.
Similarly, in his remarks, the AGF Group Chief Executive Officer, Jules Ngankam enthused: “This transaction with the leading development finance institution in Nigeria is a great milestone that will significantly impact Nigeria’s economy by unlocking up to $100 million in financing for small and medium enterprises. African Guarantee Fund will also provide tailored guarantees and technical assistance towards the special small and medium enterprise products offered by Bank of Industry that target women, youth and green businesses.”
Speaking on the financing initiative, the Managing Director/Chief Executive Officer of BoI, Dr. Olasupo Olusi, said: “Bank of Industry is excited to leverage the guarantee framework of the African Guarantee Fund in promoting sustainable growth, gender equity, innovation and advancing more credit to small and medium enterprises in Nigeria in line with [Nigeria] President Bola Tinubu’s government’s Renewed Hope agenda.”
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.
Analysts believe that the pact marks the beginning of a long-term strategic relationship and blending AFAWA’s goal to reduce the financing gap Africa’s women entrepreneurs as well as the AGF’s mission to unlock financing for small and medium enterprises, and BoI’s mandate to catalyse Nigeria’s industrialization and economic transformation.
