The African Guarantee Fund (AGF) and Visa Foundation have formalized a $2 million grant agreement designed to expand access to finance for women-led and women-owned small and medium-sized enterprises (WSMEs) across Africa. The collaboration will strengthen the Affirmative Finance Action for Women in Africa (AFAWA) Guarantee for Growth program, an initiative spearheaded by the African Development Bank (AfDB) to address systemic barriers to capital. By channeling catalytic funding and technical assistance, the partnership seeks to close Africa’s persistent gender financing gap and drive sustainable economic transformation.
Addressing Africa’s Gender Financing Gap
Women entrepreneurs represent nearly 60 percent of Africa’s entrepreneurial population yet receive only about three percent of startup funding. This financing imbalance translates into a USD 42 to 49 billion shortfall, limiting women’s ability to grow businesses and create jobs at scale. By providing first-loss capital and guarantees, the AGF-Visa Foundation partnership aims to unlock private sector lending, boosting confidence among financial institutions to extend credit to women-led enterprises.
Building on AFAWA’s Momentum
The AFAWA initiative, backed by AfDB and supported by international donors including the G7, the Netherlands, and Sweden, has already demonstrated measurable impact. To date, it has facilitated loans to more than 14,000 women-led businesses, generating over USD 600 million in incremental income and supporting more than 80,000 jobs. With Visa Foundation’s grant, AFAWA will extend its reach beyond the current 27 countries, aiming to multiply its financing effect across the continent.
Voices from the Partnership
AGF Group CEO Jules Ngankam described the grant as a turning point in scaling support for women entrepreneurs across Africa. He stressed that the initiative goes beyond capital by offering capacity-building, training, and network access to ensure long-term resilience. Ngankam emphasized that empowering women-led SMEs directly fuels inclusive growth, as women consistently reinvest in their families and communities.
Visa Foundation’s Commitment
Visa Foundation President Graham Macmillan highlighted that AGF’s track record makes it a natural partner for this initiative. He noted that the Foundation’s support is aimed at fostering financial inclusion, expanding opportunity, and ensuring that entrepreneurs thrive regardless of gender or geography. By contributing catalytic grant capital, Visa Foundation seeks to multiply the overall impact of AFAWA’s blended finance model.
Technical Assistance and Ecosystem Strengthening
The partnership is not limited to financial guarantees but also integrates AGF’s Capacity Development program to enhance the credit-readiness of women entrepreneurs. This includes equipping partner financial institutions (PFIs) with tools to better serve women-led businesses and embedding technical assistance to strengthen lending practices. Such interventions are expected to drive job creation, improve business resilience, and unlock broader economic benefits across Africa.
Broader Economic Implications
Research indicates that closing Africa’s gender financing gap could inject as much as USD 15 trillion into the continent’s economy. Given that women-owned businesses already contribute close to 20 percent of Africa’s GDP, scaling their access to finance represents a strategic growth lever. This partnership reflects a growing recognition that women entrepreneurs are essential to unlocking Africa’s full economic potential.
The USD 2 million grant from Visa Foundation to AGF signals more than just financial support—it underscores a shared commitment to women’s economic empowerment in Africa. By scaling the AFAWA initiative, the partnership seeks to remove systemic barriers, expand access to credit, and provide the training and networks necessary for long-term success. If successful, the collaboration could redefine the role of women entrepreneurs in driving Africa’s inclusive growth and sustainable development.