Empowering Women Entrepreneurs in Africa: A Collaborative Effort
By Carmel Kistasamy, Sector Head: Development Finance, Absa CIB
Busisiwe Mdletshe’s journey from a small business owner to a strategic chief executive is a testament to the transformative power of investment in women entrepreneurs. Leading NetVest, a financial services provider in South Africa, Mdletshe emphasizes the importance of continuous investment, not just financially, in order to scale her business and unlock her full potential as a leader in the finance sector.
Through targeted loans and flexible overdraft facilities, Mdletshe was able to secure the working capital needed for operational stability while also participating in skills development programs like the Fetola’s Emerging Entrepreneurs Mentorship Programme and the International Executive Leadership Programme at the Frankfurt School of Finance and Management. These initiatives equipped her with executive-level skills, enabling NetVest to pursue larger clients and more complex projects.
Mdletshe’s success story reflects a global effort to close the gender financing gap, as highlighted by the World Economic Forum’s findings on the disparity in financing for women-run SMEs. While progress has been made, there is still work to be done to ensure equal access to capital for women entrepreneurs across the continent.
Recognizing the significance of investing in women-led businesses, Absa has partnered with the African Development Bank (AfDB) to launch a transformative multibillion-rand financial package aimed at supporting underserved segments, with a strong focus on women entrepreneurs. This partnership includes sustainability-linked loans, non-financial support for capacity building, and initiatives like affordable housing loans for female homeowners.
The collaboration between Absa and AfDB exemplifies how Development Finance Institutions and private banks can work together to empower women entrepreneurs in Africa. By providing financing, capacity building, and mentorship opportunities, these institutions are paving the way for sustainable growth and economic empowerment for women-led businesses.
In addition to Absa’s regional commitment to secure $10 billion for women enterprises by 2035, other institutions like Equity Group Holdings and the African Guarantee Fund are also scaling up efforts to accelerate SME funding, particularly for women and youth-led businesses in East and Central Africa. The Bank of Industry in Nigeria has also partnered with AfDB to provide financial and business advisory assistance to women-led enterprises.
Through collaborative initiatives and targeted investments, the financing gap for women entrepreneurs in Africa can be closed, leading to greater economic growth, stability, and inclusive development across the continent. As more leaders like Busisiwe Mdletshe emerge, the future of women entrepreneurship in Africa looks brighter than ever.
