AfDB and Ecobank Expand Financing for Women Entrepreneurs in Africa

The African Development Bank Group’s Affirmative Finance Action for Women in Africa (AFAWA) initiative is helping transform how banks finance women-led businesses across the continent by reducing barriers that have long limited women entrepreneurs’ access to credit.

Through a growing partnership with Ecobank, one of Africa’s largest pan-African banking groups, the initiative is enabling banks to move beyond traditional collateral requirements and instead focus on business performance, cash flow, and growth potential.

The collaboration is already producing significant results, helping thousands of women entrepreneurs access financing, expand businesses, create jobs, and challenge long-standing stereotypes about women in business.

Traditional Banking Barriers Limit Women Entrepreneurs

In many African banking systems, lending decisions are heavily based on collateral — assets such as land or property pledged as security for loans.

However, many women entrepreneurs across Africa face systemic barriers to owning property or acquiring formal assets, making it difficult to qualify for traditional business financing.

As a result, otherwise viable businesses are frequently denied access to credit despite strong performance or growth potential.

Development experts say this financing gap continues to limit entrepreneurship, economic inclusion, and job creation across the continent.

The African Development Bank believes addressing this challenge requires not only policy reforms but also a fundamental shift in how financial institutions assess risk.

Ecobank Adopts “Outside-In” Customer Approach

At Ecobank, which operates in 33 African countries, the effort to improve women’s access to finance has involved redesigning products and lending systems around the actual needs of entrepreneurs.

Carol Oyedeji, Ecobank’s Group Commercial Banking Head, explained that the bank uses what it describes as an “outside-in” approach.

“We believe in designing solutions from the customer’s perspective,” Oyedeji said.

The strategy focuses on understanding the realities women entrepreneurs face and developing financing products that are more accessible and responsive to those needs.

AFAWA Guarantee Reduces Lending Risk

A major turning point in the partnership came through AFAWA’s “Guarantee for Growth” mechanism.

Under the programme, AFAWA covers up to 75 percent of the risk on loans made to women-led businesses.

The guarantee reduces the financial exposure faced by banks, allowing lending officers to become more flexible when evaluating applications.

With lower risk exposure, Ecobank says its credit teams can focus more on:

• Business performance

• Cash flow

• Commercial viability

• Growth prospects

rather than relying heavily on collateral requirements.

“The guarantee materially influences decision-making,” Oyedeji explained.

“It makes officers more open to approving loans that might otherwise be declined.”

Beyond Financing: Capacity Building and Innovation

The partnership extends beyond guarantees and direct financing.

AFAWA also provides capacity development support that helps partner banks improve internal systems, product design, and service delivery for women entrepreneurs.

At Ecobank, this support has contributed to the development of several specialized financial products and services, including:

• Contract-based financing

• Merchant cash advances

• The Ellevate programme for women-led businesses

The Ellevate initiative combines financing with:

• Business training

• Market access support

• Advisory services

• Capacity development

The programme aims to address broader structural barriers women entrepreneurs often face beyond financing alone.

Sierra Leone Entrepreneur Expands Business Through Programme

One entrepreneur benefiting from the programme is Sierra Leone businesswoman Fatima Sesay, founder of freight forwarding company Unimax.

Despite operating a successful business with a strong track record, Sesay previously struggled to access financing through conventional banking channels.

Through Ecobank’s Ellevate programme and the AFAWA guarantee, she was able to secure funding based on confirmed business contracts rather than traditional collateral.

“When it comes to financing, I don’t joke around – I use my financing for what I say it will be used for,” Sesay said.

She emphasized the importance of responsible loan management and repayment discipline.

The financing allowed her company to scale operations significantly by taking on major contracts with organizations including:

• The World Health Organization (WHO)

• DHL

• Other international clients

Financing Supports Job Creation and Growth

With the new financing, Sesay expanded her transportation and logistics operations.

She purchased four trucks and hired:

• Drivers

• Apprentices

• A transport manager

As a result, her company’s workforce grew by 13 employees.

Sesay said the experience also helped challenge stereotypes surrounding women entrepreneurs.

“I feel that my performance contributed to breaking some of the stereotypes of women in business,” she said.

According to Ecobank, support for Sesay’s business has grown steadily over time, increasing from an initial loan of $5,000 to $40,000.

Ecobank Expands Women-Led Business Portfolio

The partnership with AFAWA has produced major growth in Ecobank’s women-focused business portfolio.

According to the bank:

• Its number of women-led business clients increased from 9,400 in 2021 to more than 83,000 by the end of 2024

• Lending to women-led businesses reached approximately $265 million

The results demonstrate growing demand for inclusive financing solutions tailored to women entrepreneurs across Africa.

Ecobank says the programme has shown that lending to women-owned businesses is not only socially important but also commercially viable.

Recognition at African Banker Awards

In recognition of its efforts to expand financial inclusion for women entrepreneurs, Ecobank was named “AFAWA Bank of the Year” at the African Banker Awards in May 2025.

The award highlighted the bank’s leadership in developing innovative approaches to financing women-led enterprises across multiple African markets.

AFAWA Expands Reach Across Africa

The African Development Bank’s AFAWA initiative was established to address the estimated multi-billion-dollar financing gap faced by women entrepreneurs across Africa.

Melissa Basque-Roux, AFAWA’s coordinator, said the Ecobank partnership demonstrates the transformative potential of de-risking mechanisms and financial innovation.

“AFAWA’s mission is to transform Africa’s financial landscape to make it truly work for women,” she said.

“The Guarantee for Growth partnership with Ecobank is a best-in-class example of this vision in action.”

She added that the programme demonstrates what becomes possible when financial institutions are empowered to innovate and rethink traditional lending models.

More Than $3.1 Billion Mobilized

Across Africa, AFAWA has now partnered with more than 200 financial institutions.

Together, these partnerships have helped channel over $3.1 billion in financing to women-led businesses throughout the continent.

The initiative seeks to expand access to finance while also supporting:

• Entrepreneurship

• Employment generation

• Economic inclusion

• Private sector development

• Women’s economic empowerment

Development experts say expanding women’s access to finance can generate broad economic benefits by increasing productivity, strengthening household incomes, and creating jobs.

Rethinking Banking for Inclusive Growth

The Ecobank-AFAWA partnership reflects a broader shift in African banking toward more inclusive and innovative financing approaches.

Rather than relying solely on traditional collateral models, institutions are increasingly exploring alternative methods based on:

• Cash flow analysis

• Contract financing

• Risk-sharing guarantees

• Business performance data

Supporters say these models can help unlock significant untapped economic potential across Africa, particularly among women- and youth-led businesses that have historically faced exclusion from formal financial systems.

As African economies continue seeking more inclusive and diversified growth, initiatives like AFAWA are increasingly being viewed as important tools for strengthening entrepreneurship, reducing inequality, and expanding economic opportunity across the continent.