The African Development Bank and the Bank of Industry have finalized a loan agreement amounting to $50 million aimed at supporting enterprises led by women in Nigeria.

 

The Affirmative Finance Action for Women in Africa (AFAWA) initiative of the African Development Bank Group is allocating $50 million to bolster enterprises led by women in Nigeria.

On Thursday, December 5, during the Africa Investment Forum in Rabat, the African Guarantee Fund, which is affiliated with the AfDB and aims to assist financial institutions in enhancing their support for small and medium-sized enterprises (SMEs), formalized a $50 million loan portfolio guarantee framework with the Bank of Industry (BOI), as reported by the AfDB.

According to the AfDB, this transaction will be executed in three phases over a decade and is expected to significantly enhance lending from the Bank of Industry, Nigeria's oldest and largest development financing institution, to SMEs across the nation.

The facility is designed to support women-led businesses through the AFAWA Guarantee for Growth programme, which provides access to financing for women entrepreneurs by implementing de-risking strategies and offering technical assistance. The African Guarantee Fund is responsible for executing this programme.

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