It is often said that ‘if you want to go fast, go alone but if you want to go far, go together’. It is also argued that no economy can achieve its full potential without the participation of women and partnerships, a way to go together, which offer an opportunity to ensure that our economy achieves its full potential.
According to the World Bank, women-owned enterprises account for 58 per cent of all African Small and Medium Enterprises (SMEs), which contribute around 30 per cent of the continent’s overall GDP. These enterprises have thrived because of a network of social-cultural support among women, which includes pooling resources through ‘chamas’, sharing ideas, and partnering to increase impact.
If women-owned enterprises are to expand to national, continental, and even global levels, these networks must transcend local boundaries and create opportunities to connect women throughout African marketplaces. A woman in, say, Lodwar or Isiolo, given the right information and setting to discuss ideas with her peers, is empowered to broaden her world to limitless possibilities. She can dream big and pursue her goals with tenacity and courage.
Immense opportunities for African women entrepreneurs are about to open up thanks to the African Continental Free Trade Agreement (AfCFTA). This trade pact introduces many attendant benefits, including expanded markets, reduction in trade barriers, market access expansion, cost cuts as tariffs on goods exchanged between African countries are gradually phased out, and the assurance of removal of barriers like lengthy customs procedures and licensing requirements. As such, Kenyan women-owned businesses need to adequately prepare for AfCFTA by building cross-border and intra-regional investment partnerships and networks across the continent to take advantage of the trade pact.
As bankers, we witness customers connect across our network infrastructure and create new growth stories all the time. We believe financial institutions can offer the nodes that will link trade and enterprise across the continent.
As a case in point, during the recent Absa InspireMe Conference in Nairobi, the International Trade Centre (ITC) and Absa Bank Kenya brought together women entrepreneurs from different hubs across Africa to share knowledge and experiences of their business growth journeys and showcase some of their products and services to new markets.
Through these interactions, we have seen local businesses get exposure to information that has proved invaluable in the pursuit of accessing overseas markets, like regulations, clearance, quality and safety standards within different markets, to enable them to benefit from such opportunities to grow their businesses.
Looking ahead, for these women-led businesses to achieve their full potential, they will need to continually embrace partnerships and collaborations. For example, we have witnessed traditional alliances and collaborations where two businesses offering complimentary services come together to give customers better value. It becomes a game-changer when a business forges collaboration with institutions that provide them with a platform to transform and grow.
For instance, it has been proven that businesses that forge partnerships with financial institutions through business clubs, trade associations and strategic alliances have a better success rate than those operating in silos. Partnerships form a key ingredient that allows businesses to leverage additional strength, resources and networks to achieve growth and success of any business venture. Recently, Absa Bank Kenya and Old Mutual partnered to launch a bundled SME insurance solution, ‘Linda Biz’, for SMEs. The partnership leverages both institutions’ portfolios and ensures comprehensive risk management and financial stability thus offering immense benefits to SMEs.
Another example is our partnership with the African Guarantee Fund (AGF) in enhancing credit access for women-led SMEs. By providing guarantees to banks, AGF helps reduce the risk associated with lending to these businesses, making it easier for them to secure sustainable financing.
This partnership has been particularly beneficial in bridging the financing gap that often hampers the growth of women-led SMEs. As a result, many clients have been able to access the capital they need to scale their businesses and achieve their growth ambitions.
On the other hand, our collaboration with Sanad Fund for Micro, Small and Medium-sized Enterprises (MSMEs) has been instrumental in providing technical and financial support to underserved entrepreneurs, including women while partnerships with the likes of eco.business Fund continue to support sustainable economic growth by providing financing to agribusinesses that adhere to environmentally friendly practices.
The Kenyan government has also been keen on fostering partnerships with financial players in supporting women led businesses in Kenya. In partnership with The Executive Office of the President through the Office of the Women’s Rights Advisor and African Guarantee Fund, we launched a Women Economic Empowerment and Investment Curriculum in Kakamega County in May 2024. The ‘Empower Her’ program seeks to empower over 30,000 women-led MSMEs, across all the 47 counties, a testament to the immense power of partnerships.
In summary, to drive the success of women-led businesses in Africa, financial intermediaries must harness the power of partnerships and create synergies through resource mobilization, market’s access and skills transfer to drive quicker growth and better value delivery for their customers.
By Elizabeth Wasunna-Ochwa – Business Banking Director at Absa Bank Kenya PLC