Bridging the Divide: Visa Foundation and AGF Team Up with $2M Boost to Tackle Africa's $49B Women’s Funding Shortfall

A groundbreaking alliance in the fight for financial equality has emerged, as the Visa Foundation joins forces with the African Guarantee Fund (AGF) to inject $2 million into empowering women entrepreneurs across the continent. This targeted grant is set to supercharge the Affirmative Finance Action for Women in Africa (AFAWA) Guarantee for Growth program, a vital effort to dismantle barriers that have long stifled access to capital for women-led businesses.

At the heart of this collaboration is a commitment to narrowing the staggering $49 billion gender finance gap that plagues African economies. Women, who make up 58% of the continent's self-employed workforce and drive almost 20% of its GDP, often find themselves sidelined by traditional lending practices. The new funding will provide risk-sharing guarantees to financial institutions, encouraging them to extend more loans to women-owned small and medium-sized enterprises (WSMEs), while also delivering hands-on technical assistance to build their operational strength.

"This partnership transcends mere financial access—it's about igniting real economic and social change," declared Jules Ngankam, CEO of AGF. He underscored the ripple effects, noting that women business owners are renowned for channeling profits back into their families and communities, fueling cycles of sustainable progress. "Initiatives like this are essential for long-term development," Ngankam added.

The Visa Foundation's involvement aligns seamlessly with its global mandate to champion financial inclusion and uplift entrepreneurs in underserved markets. Graham Macmillan, President of the Visa Foundation, voiced strong enthusiasm for the tie-up, emphasizing its potential to unlock private sector investment and amplify opportunities for women-led ventures. "We're proud to support this work, which not only empowers individuals but also strengthens entire economies," Macmillan said.

Since its inception under the African Development Bank, the AFAWA program has already made waves, channeling nearly $1 billion in loans to more than 14,000 women-led enterprises continent-wide. With the fresh infusion from Visa, AGF aims to scale these gains further, partnering with financial institutions to roll out enhanced lending options and training programs. The goal? Not just more loans, but resilient businesses that create jobs, weather economic storms, and contribute to inclusive growth.

As Africa's entrepreneurial spirit continues to flourish, this $2 million push stands as a beacon of hope, proving that targeted investments can turn systemic inequities into stories of empowerment and prosperity. Stakeholders are watching closely, eager to see how this initiative reshapes the landscape for the next generation of female trailblazers.