Browsing: Graça Machel Trust

Financial inclusion for women in Africa remains a challenge. According to a recent African Development Bank report, African women entrepreneurs still face a USD42 billion finance gap. Photo/OECD
  • African women entrepreneurs face a staggering $42 billion financing gap.
  • Unfortunately, banks have more stringent loan terms for women-owned businesses.
  • To counter this, Women Creating Wealth (WCW) and Afrishela Fund are providing capital funding options for women in Africa.

Financial inclusion for women in Africa remains a challenge. According to a recent report by the African Development Bank (AfDB), women in Africa running various forms of businesses are facing a staggering $42 billion financing gap.

“Traditional banks often view women-led businesses as high-risk, making loans complicated to obtain and expensive,” AfDB notes in part. Consequently, banks place harder terms for women applying for loans.

“Many women need more business and financial skills to qualify for these loans,” notes AfDB, adding that women also face more stringent legal and regulatory hurdles that further limit the potential of women-owned enterprises.

The AfDB report was shared at a recent workshop held in Tanzania …