Kenyan women's businesses have received a major boost following a commitment by
Speaking during the ongoing Africities conference in Kisumu,
"We estimate the total funding gap for women-owned businesses to be Sh4.2 trillion across the African continent, of which about 1 per cent of that figure is Kenyan. In order to address these persisting inequalities, it is important to channel all forms of support for these businesses through affirmative action," he said.
Odhiambo added that several research studies back the move to support women's businesses increasingly as they are more likely to be financially disciplined and less likely to default on their loan repayments.
It also includes concessionary terms and conditions of access to financing for women-owned businesses some of which are access to non-collateralized lending, shorter business gestation period for accessing credit facilities, lending on business cash flows and creating a value-chain and ecosystem banking model for them.
The bank has also initiated capacity building programs through the Ecobank Africa Academy Program, where currently more than 600 women are going through business management training.
Odhiambo noted that all the supportive programs still require a conducive regulator environment to foster the level of impact on urban economic growth they are anticipated to achieve.
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The suitable regulations cover differentiated credit risk classification guidelines which can promote lending to MSMEs and women-led enterprises such as shortening the period for delisting of women-related businesses from adverse credit reporting.
"There should be a consistent, deliberate effort to legislate value chain relations between MSMEs, youth, women enterprises, and the larger corporations to create a fair share of business opportunities. Legislation supporting locally sourced supplies from MSMEs, youth and women enterprises should be encouraged," noted Odhiambo.
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