According to a 2019 African Development Bank report, African women entrepreneurs still face a $42 billion finance gap. Traditional banks often view women-led businesses as high-risk, making loans complicated to obtain and expensive. Many women need more business and financial skills to qualify for these loans. Legal and regulatory hurdles further limit the potential of women-owned enterprises. The Women Creating Wealth (WCW) programme and the Trusts' investment fund Afrishela, recently held a workshop in Tanzania, focusing on alternative financing models that could help women entrepreneurs access capital to address this issue.
WCW's role in supporting women
WCW is more than a programme; it is a movement transforming economic opportunities for African women entrepreneurs. As Ms. Anabahati Mlay, WCW Country Lead- Tanzania, explained, the programme has already supported numerous entrepreneurs, helping them expand their businesses and contribute to economic growth. WCW continues to make significant strides by supporting 1,000 entrepreneurs, generating $1 billion in revenue, and creating 200,000 jobs for youth.
"Through WCW, we have built a community of successful women entrepreneurs," said Anabahati. "We want to invest in women-owned businesses and create a network focused on wealth creation for women."
In Tanzania, Kenya, Malawi, South Africa, Senegal, and Zambia, WCW helps businesses become more visible and fundable. The programme addresses financial mindset, bookkeeping, negotiation skills, and efficient processes.
How the programme is helping women explore alternative financing
The workshop introduced several alternative financing options:
- Crowdfunding: Raising small amounts of money from many people, usually online.
- Private Equity: Investment funds that provide capital to private companies in exchange for ownership shares.
- Venture Capital: Funding for startups and early-stage companies with high growth potential.
- Angel Investors: Wealthy individuals who invest in startups, often for convertible debt or equity.
These options offer more accessible funding than traditional bank loans, which often have high interest rates and require collateral.
During the workshop, Ms. Jane Muia from the Graça Machel Trust in Kenya took the stage to present the Afrishela Fund, highlighting on important alternative financing option for women entrepreneurs. Afrishela, meaning "Her Money," is an impact fund created by African women for African women. "We saw a critical gap in the capital," explained Jane. "We wanted to create a fund designed by African women, targeting African women with responsive capital." She detailed how Afrishela supports women-led businesses across Africa, particularly those focused on climate-smart and sustainable initiatives. By offering flexible capital options--including loans with rebates or discounts, grace periods, and terms tailored to women-owned enterprises--the fund makes financial support more accessible and adaptable to their unique needs. Operating in South Africa, Zambia, Tanzania, Uganda, and Rwanda, Afrishela has invested in numerous early-stage businesses across the region. Jane's presentation seamlessly connected with the workshop's goal of exploring diverse financing models, demonstrating how Afrishela complements WCW's efforts to bridge the $42 billion finance gap faced by African women entrepreneurs.
Having invested in several companies, Afrishela plans to support six more in the next six months, continuing to assist women entrepreneurs' growth.
Success stories
The real impact of programmes like WCW and alternative financing is seen in the stories of women entrepreneurs.
Maida Waziri, Chairperson of the Voice of Women Entrepreneurs (VOWET) and a WCW alumna shared her journey: "I have learned and grown from the WCW programme and sessions like this. I am now classified as a large contractor nationally, the largest woman-owned contractor in Tanzania. I have won national and regional awards. I credit part of my growth to WCW. Women should take this programme seriously--it pays off." Maida's story shows how access to resources and support can help women scale their businesses.
Patricia Kakorozya, CEO of WA Farmwise Tanzania and alumna of WCW shared: "Running and sustaining a business is hard work. Sometimes, you fail, but you must get back up. Sessions like these are critical, and women must use them. You must absorb at least 80% of the knowledge to grow your business. It's not enough to leave with only 30%." Patricia's words emphasise the importance of fully engaging with learning opportunities.
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The need for preparation
It was highlighted in the workshop that access to finance is only part of the solution; women entrepreneurs must also be prepared to meet investors' demands. This involves establishing strong business operations, cultivating a positive financial mindset, maintaining accurate bookkeeping, improving negotiation skills, and recognizing the importance of networks and mentorship. As Ms. Anabahati noted, "Access to finance has been a cry for many women, but we have to be ready."
Programmes like WCW and funds like Afrishela are providing the knowledge, skills, and capital that women need to succeed. The success stories of Maida and the CEO of WA Farmwise Tanzania demonstrate what is possible when women have equal opportunities. Supporting women entrepreneurs leads to job creation, innovation, and sustainable development.
