Women-led businesses get boost in Sh1.2bn SBM deal
From left : Cate Ndichu, Moezz Mirr of SBM Bank Kenya, African Guarantee Fund Group CEO Jules Ngankam, AGF’s Maureen Kayamba and SBM Kenya’s Beth Muthoi during the risk-sharing agreement between the African Guarantee Fund (AGF) and SBM Bank Kenya.
What you need to know:
- The five-year partnership with African Guarantee Fund is expected to transform SMEs and support businesses owned by women to access credit on favourable terms.
- SBM CEO Moezz Mir noted that women entrepreneurs face many financial and non-financial barriers that prevent them from fully participating in the formal economy.
SBM Bank Kenya on Monday sealed a $10 million (about Sh1.2 billion) risk-sharing agreement with the African Guarantee Fund (AGF) to increase its financing of women-led micro, small and medium-sized enterprises.
The five-year partnership is expected to transform the SMEs sector and support women-owned businesses to access credit on favourable terms. It would also capacitate them to scale up their businesses and increase their contribution to wealth and jobs creation.
Speaking during the signing ceremony in Nairobi, SBM CEO Moezz Mir noted that women entrepreneurs face many financial and non-financial barriers that prevent them from fully participating in the formal economy.
“Due to structural inequalities and discrimination, women access less capital and fewer resources than their male counterparts in these complex value chains. Additionally, they have limited access to social capital, resulting in missed potential opportunities to grow their businesses,” he stated.
Mr Mir said the bank through its SBM Women Market Programme, would continue providing linkages that educate, empower and protect women entrepreneurs through advisory services, investment, insurance, and wealth management.
Pivotal role
Also present was AGF Group CEO Jules Ngankam, who asserted that it was time to invest in women to ensure one half of the population is as equally productive and not left behind. He said the partnership with SBM Bank would empower women SMEs to play their pivotal role in economic development and innovation in the country.
“The paradox is that Africa has the highest number of women entrepreneurs, yet when it comes to those who can access and secure financing, we have the lowest numbers in the world,” he said.
Mr Ngankam said the partnership will empower women entrepreneurs through Affirmative Finance Action for Women in Africa (Afawa) Guarantee for Growth product while fostering sustainable growth by increasing financing of climate-focused SMEs through their Green Guarantee facility.
Moreover, it would support small businesses to ramp up their skills in areas such as leadership, human capital management, technology, financial management and marketing, which would boost their credit requirement threshold.
