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Kenya: Ecobank Plugs Women’s Businesses Funding Gap to Drive Urban Economic Growth

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3 years ago

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Nairobi — Kenyan women’s businesses have received a major boost following a commitment by Ecobank to channel more financial resources to support their growth.

Speaking during the ongoing Africities conference in Kisumu, Ecobank’s Director for Commercial Banking in Kenya and East Africa, Samwel Odhiambo explained that despite progress that has been made over the last two decades in mainstreaming women-owned businesses into the economy, they still face unnecessary barriers that limits them from fully participating in the economy.

“We estimate the total funding gap for women-owned businesses to be Sh4.2 trillion across the African continent, of which about 1 per cent of that figure is Kenyan. In order to address these persisting inequalities, it is important to channel all forms of support for these businesses through affirmative action,” he said.

Odhiambo added that several research studies back the move to support women’s businesses increasingly as they are more likely to be financially disciplined and less likely to default on their loan repayments.

Ecobank’s affirmative financing is banking on the women having a minimum 30 per cent of its business portfolio around women related businesses and have put in place a special program for women-owned businesses and those where at least 30 per cent of key management positions are held by female employees.

It also includes concessionary terms and conditions of access to financing for women-owned businesses some of which are access to non-collateralized lending, shorter business gestation period for accessing credit facilities, lending on business cash flows and creating a value-chain and ecosystem banking model for them.