- Current statistics indicate a financing gap of over $49 billion impacting women SMEs in Africa.
- AGF has signed a Sh725 million risk-sharing partnership agreement with KWFT that will unlock up to Sh3 billion in financing for WSMEs.
- The partnership is fully backed by the AfDB's Affirmative Finance Action for Women in Africa (AFAWA) initiative.
Lending at the Kenya Women Microfinance Bank PLC (KWFT) has received a boost after a new partnership signed in Nairobi on May 6, 2024.
The African Guarantee Fund (AGF) signed a Sh725 million risk-sharing partnership agreement with KWFT toward improving financial inclusion for Women's Small and Medium Enterprises (WSMEs) in Kenya.
The agreement will avail up to Sh3 billion in financing for over 1,000 SMEs that are owned or led by women in Kenya.
This guarantee on loan portfolio will also go towards expanding KWFT’s green initiatives that address climate change and contribute to job creation and sustainability, driving sustainable inclusion and economic growth.
As part of the agreement, AGF will enhance automation, train KWFT staff and upscale WSMEs supported by the organisation.
"One of our goals for this partnership is to prioritise capacity building that equips women entrepreneurs with the essential skills and knowledge needed to build sustainable businesses and access market opportunities that will drive Africa’s economic growth and development," AGF Group CEO, Jules Ngankam said.
KWFT MD Kariuki Kitabu added: "This collaboration with AGF marks a significant milestone in our journey towards empowering women entrepreneurs and enhancing financial inclusion in Kenya. We are confident that through this partnership, we will strengthen our operations and better serve our clientele, thereby contributing to women economic empowerment."
The partnership is fully backed by the African Development Bank's Affirmative Finance Action for Women in Africa (AFAWA) initiative, which aims to expand AGF's reach in supporting women-led or owned businesses.