Absa Bank Kshs. 50M programme to train 1,500 women entrepreneurs

Absa Bank Kenya and the German Development Cooperation have rolled out a Kshs. 50 million programme that will increase growth and competitiveness of 1,500 women-owned Micro, Small and Medium Enterprises.

The programme targets women-led MSMEs which have been hurt as a result of the COVID-19 pandemic.

The partnership is under the Employment and Skills for Development in Africa (E4D) Programme commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and Absa Bank Kenya.

Dubbed SHE Stars, the project will offer a business skills training for the 1500 female entrepreneurs running small businesses in various sectors of the economy that have been negatively affected by the current COVID-29 pandemic.

“Absa Bank is committed to making financial services more accessible and improving financial literacy among women entrepreneurs. We are exploring possibilities that would reduce inequalities within the society so as to enable their economic development,” said Elizabeth Wasunna, Absa Bank Business Banking Director.

The programme aims to address business gaps and training needs that women entrepreneurs face, such as inadequate access to finance, mentorship, information and markets.

“Women-led businesses in Kenya and beyond have proven multiplier financial effects both on the national economy and on households. This partnership therefore aims to address capacity, structural and financial challenges, as well as the impacts of the current pandemic, these MSME’s face to realize their full potential in accelerating these multiplier effects,” added Thomas Jaeschke, E4D Head of Programme.

The 1,500 SHE Stars will be enrolled in a Technical Business Management Programme facilitated by Yunus Environment Hub under the Absa SHE Business Academy as part of the program.

Among other things, the programme will cover cash flow analysis, risk management, income diversification, branding, fundraising, leadership, and people management. As part of the training program, Absa Bank will also provide loan facilities.

The initiative is in line with Absa’s women agenda and commitment to empower over 1 million women entrepreneurs across the country with the necessary financial and non-financial support to scale up and take their businesses to the next level over the next five years.

Absa Bank launched its SHE women in business account in May this year, providing access to unsecured loans of up to Kshs. 8 million payable over six years.

“We need to encourage as many women entrepreneurs as possible to register their businesses, formalise their operations and maintain good records of their transactions. These are important factors that determine entrepreneurs’ ability to attract investment, credit, and other business opportunities,” added Wasunna.

Women-owned businesses will be able to access the funds through existing banking products such as unsecured and secured loans, trade finance, asset finance, property finance and working capital facilities.

According to a 2018 report published by the Central Bank of Kenya, there are 517,000 registered women-owned businesses in Kenya, accounting for 33% of all women-owned small and medium enterprises.

As per a separate study conducted by the International Finance Corporation, more than 70% of women-led SMEs in every region are either financially unserved or underserved.