Empowering women entrepreneurs: The critical role of partnerships and financial institutions
By Elizabeth Wasunna-Ochwa Business Banking Director, Absa Bank Kenya PLC
In the quest for economic prosperity, the adage “if you want to go fast, go alone; if you want to go far, go together” resonates profoundly. Nowhere is this more evident than in the realm of women-owned enterprises in Africa, which, despite facing numerous challenges, hold immense potential for driving economic growth across the continent.
Women entrepreneurs in Africa are a formidable force. According to the World Bank, women-owned businesses constitute 58% of all African Small and Medium Enterprises (SMEs), contributing roughly 30% of the continent’s GDP. This impressive contribution is largely fueled by robust networks of support among women, often facilitated through informal social structures such as ‘chamas’, which allow for resource pooling and collaborative growth.
However, to achieve their full potential, these enterprises must transcend local and national boundaries, tapping into broader markets and opportunities. The African Continental Free Trade Agreement (AfCFTA) presents a transformative opportunity in this regard. By eliminating trade barriers, reducing tariffs, and streamlining customs procedures, AfCFTA can unlock significant growth potential for women-owned businesses across the continent.
Yet, leveraging these opportunities requires more than just awareness; it necessitates strategic preparation and partnership. Financial institutions play a crucial role in this process, serving as essential nodes in the network that links trade and enterprise across Africa. By offering platforms and resources, banks and financial organizations can help bridge gaps and create pathways for businesses to access new markets.
Recent initiatives highlight the power of such collaborations. The Absa InspireMe Conference in Nairobi exemplified this approach, bringing together women entrepreneurs from various African hubs to exchange knowledge and expand their market reach. Such events not only provide exposure to new markets but also offer invaluable insights into regulations and standards crucial for international expansion.
Strategic partnerships can further enhance these efforts. For instance, Absa Bank Kenya’s collaboration with Old Mutual to launch the Linda Biz SME insurance solution provides comprehensive risk management, demonstrating how alliances can offer added value to businesses. Similarly, partnerships with organizations like the African Guarantee Fund (AGF) and Sanad Fund for Micro, Small and Medium-sized Enterprises (MSMEs) have improved credit access and provided crucial financial and technical support to underserved entrepreneurs, including women.
Moreover, the Kenyan government’s recent initiatives, such as the Women Economic Empowerment and Investment Curriculum launched in collaboration with Absa Bank Kenya and the African Guarantee Fund, underscore the commitment to empowering women-led SMEs. This program aims to support over 30,000 women entrepreneurs across the country, highlighting the potential of partnerships in driving substantial economic impact.
The success of women-led businesses in Africa hinges on the ability to embrace and leverage partnerships. Financial institutions, by fostering synergies through resource mobilization, market access, and skills transfer, can significantly contribute to the growth and sustainability of these enterprises. As Africa continues to navigate its economic landscape, harnessing the power of collaboration will be key to unlocking the full potential of its women entrepreneurs and achieving long-term prosperity.
