Kampala — In partnership with a commercial bank in Uganda, Tanzania and Nigeria, the World Bank (WB) is helping local women leverage the potential of their businesses.

These funds secured from WB's private sector arm, the International Finance Corporation (IFC) are being availed to women entrepreneurs in the small and medium scale enterprises at standing market interest rates.

Back in December 2004, the Gender Entrepreneurship Markets (GEM) programme was launched as a cross-cutting initiative to mainstream gender issues throughout IFC operations.

Its activities structured to assist the Private Enterprise Partnership Facility for the Middle East and North Africa (PEP-MENA Facility) rotate around three main goals, increasing access to finance for women, adding value to IFC investment projects and addressing gender barriers in the business enabling environment.

Only last Tuesday, the WB in partnership with dfcu group (composed of dfcu limited and dfcu bank) in Uganda rolled out a 'Women In Business' programme following the signing of a credit line of US$6 million (Ush 10.80 billion) last October.

Of the entire sum, women entrepreneurs will access a special $2 million (Ush3.6 billion) from dfcu limited to grow their businesses while the $4 million ($7.2 billion) will be devoted to export oriented businesses under a different arrangement.

According to GEM, the underserved women's market in access to finance is becoming a bigger focus of banking executives around the world and that while the spotlight is currently on the role microfinance has played in lifting poor women out of poverty, women's access to SME financing is also gaining increasing attention.

Unveiling the initiative for Uganda at the Serena Kampala Hotel last Tuesday, Ms. Cherie Blair, wife to British premier said that the traditional images of African women brewing local beer and carrying farm produce to the markets was fast changing to that of processed products, with the mobile phone as an inseparable companion.

"By improving the position of women in society, we are improving the position of everyone," she said.

In 2005, the IFC committed and disbursed a $10 million (Ush18.5 billion) senior loan to primarily assist the growth of dfcu's long term lending portfolio.

This relationship between dfcu and IFC stretches further than meets the eye. In 2004, the Uganda government and IFC sold a combined stake of 40% in the company's Initial Public Offer (IPO) allowing the latter to fully exit its investment made in 1984.

More women, a WB Group research has established, are more likely than men to contribute additional income to household poverty reduction.

50% of Uganda's gross domestic product (GDP) is produced by women, whom according to gender, labour and social affairs state minister Ms. Rukia Isanga, could increase GDP by an additional 2% if their (women) full potential is exploited.

Generally around the world, women have less access to credit. Take for example in Uganda where women own about 40% of the country's private enterprises but represent only 9% of the clientele that access credit services.

Giving more women access to credit and increasing their economic power, the WB research adds, is more likely to translate into improved livelihoods for a wide cross-section of society, and that women entrepreneurs are more likely to employ other women.

But Nigeria's Access Bank Plc, one of the fastest growing banks in the country came first on the continent on June 9, 2006 to access the first major GEM loan after signing up for $15 million.

IFC's partnership with Access Bank Plc was the beginning of a pilot programme to increase access to finance for women entrepreneurs in Africa and is anticipated to be replicated in South Africa, Mauritius, Ghana and Senegal.

"Access Bank has been searching for ways to address the needs of Nigeria's women entrepreneurs," an IFC statement quoted the bank's managing director, Mr. Aigboje Aig-Imoukhuede.

IFC's $5 million financing on February 26 made Exim Bank the first financial institution in Tanzania to dedicate lines of credit to women entrepreneurs.

As of December 2006, the bank recorded a profit of Tsh8.2 billion (net after provisions) and loan portfolio of Tsh120.8 billion with asset base at Tsh268 billion.

With interest rates in the region considerably high with most commercial banks charging between 19 to 24% per annum, the IFC is caught between a hard place and a rock.