According to the National Bureau of Statistics (NBS), the increased ownership rate of MSMEs by women represents a significant contribution to economic growth and job creation.

Digital empowerment for these enterprises must move from being a social responsibility or  gender support initiative to contribute to a broader economic development.

To reach the $1 trillion GDP milestone, women-led businesses must be positioned to operate at a macroeconomic scale.

This requires moving beyond subsistence trading and into the digital value chain.  For instance, a fashion designer in Aba through digital positioning can access broader markets and commercial networks and thereby facilitate better record-keeping and data-driven decision-making, supporting improved financial record keeping, which may be considered in credit assessments by financial institutions.

FairMoney Microfinance Bank (MFB), a bank licensed and regulated by the Central Bank of Nigeria, contributes to the digital transitioning of small businesses in Nigeria, by providing tools specifically designed for the realities of the Nigerian entrepreneur.

For women, whose businesses often fluctuate with seasonal demands or family needs, the ability to protect and grow capital is paramount. FairMoney MFB offers features that empower women to move from informal ‘under-the-mattress’ savings to digitized interest-bearing savings products. By embracing digital transition, tech-based saving platforms can enable business owners to set specific goals, such as purchasing new equipment,  saving  towards business goals in a disciplined manner, while earning interest  at applicable rates.

For that business owner who requires immediate liquidity, our flexible savings feature offers interest while allowing for withdrawal access that is subject to applicable terms and conditions to cover emergency restocks.

For longer-term scaling, our fixed-term savings feature allows entrepreneurs to lock away funds for a fixed period and accrue interest based on product terms and subject to terms and conditions. By automating savings and providing interest at applicable rates, FairMoney MFB is designed to support financial planning and resilience over time for women-led SMEs.

Nigerian women are among the most entrepreneurial globally, consistently defying structural barriers to build enterprises from the ground up. According to the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN), Nigeria has approximately 39.6 million nano, micro, small, and medium enterprises. Charles Odii, Director General at SMEDAN in 2024 also recently shared that approximately 72% of these enterprises are now classified as being owned or led by women.

This is a significant jump from previous years, which hovered around 40–43%, largely due to the surge in ‘nano’ and ‘micro’ home-based businesses. These female-led enterprises are the primary engines of job creation and community stability.

Despite this drive, women entrepreneurs face a unique set of structural hurdles that stifle their ability to scale. The ‘financing gap’ remains the most formidable obstacle.

The World Bank IFC Nigeria2Equal initiative reports that while Nigeria has one of the highest female entrepreneurship rates globally, the credit gap for these women is estimated at over 2.9 trillion Naira, forcing them into the ‘savings and family’ funding model.

The case for supporting these businesses extends beyond equity; it is rooted in the ‘multiplier effect’. Research demonstrates that women reinvest up to 90% of their income into their families and communities; specifically in education, healthcare, and nutrition.

Supporting these enterprises is, therefore, a direct investment in Nigeria’s human capital.  By bringing these businesses into the formal sector, the accuracy of economic planning will be improved. When a woman-led SME flourishes, the benefits ripple across the entire socioeconomic landscape.

The future of the Nigerian economy is intrinsically tied to the success of its women. When we prioritise women-led businesses, we are not merely fulfilling a gender quota; we can contribute to unlocking economic potential across sectors.

By bridging the digital gap and providing robust financial tools for saving and credit to women-led businesses,  Nigeria can begin to support the growth of micro-enterprises over time.

A $1 trillion Nigeria is not just a dream, it represents a significant opportunity that can be progressively realised by the resilient women entrepreneurs of our nation.

Women-led businesses in Africa face a $42 billion financing gap, yet studies consistently show that gender-diverse companies outperform others by at least 20%. If African economies fully embraced inclusivity, GDP could rise by over 13%.

Today, the world marks the International Day of Women and Girls in Science and it’s necessary to move beyond rhetoric and focus on practical solutions that break long-standing limitations. 

At the Gender Bonds Toolkit Dissemination Workshop organised by FSD Africa, Techeconomy had an insightful conversation with Tokunboh Ishmael, managing director and co-founder of Alitheia Capital. 

She shared her journey in ensuring gender-focused investments, the strategies used to break investor scepticism, and the systemic changes required to promote an inclusive business environment.

Breaking Investor Scepticism on Gender Initiatives

TE: While speaking earlier, you mentioned that it took years to convince investors to support the gender initiative. What strategies were you able to use to break the scepticism behind it or to gain traction for initiatives that address gender-based inequalities?

TI: In the first instance, we showed that there was actually an economic gain and impact from including everybody. When you heard me earlier, I said that everyone should picture their favourite football team playing with just half of the players—were they likely to win? And everybody was like, no, they’re going to lose.

We showed that there was economic potential. The female economy is worth $12 trillion globally. The African economy could have an uplift of over 13% in GDP contribution if we build more inclusive companies and economies. 

At the company level, you have better decision-making at boards, better governance, and better ideas that create products benefiting everyone.

Another key thing we did was launch a Gender Lens Toolkit for investing in companies, showing how, at every stage of the investment process, gender is a factor for success. 

It provides a framework to rate companies from gender-negative to gender-strategic and guides them in developing gender action plans. These plans help businesses diversify their income, increase revenue, and drive down costs.

Research has shown that gender-diverse companies outperform by at least 20%. In showing this and providing practical guidance on gender-smart investing, we were able to convince investors to come along.

Measuring the Impact of Gender-Focused Investments

TE: With over 70% of your fund investors focused on women, what tools or metrics do you use to measure the long-term impact of this investment on local economies and communities?

TI: Just as I mentioned, we track several key areas:

• Female Founders: We intentionally invest in female-led businesses, which is why we can maintain a portfolio where over 70% of our investments go to women.
• Board Representation: In many companies, boards are overwhelmingly male, with women as the minority or even nonexistent. We work on increasing female representation.
• Employment Practices: We assess hiring policies to ensure more high-level jobs are accessible to women.
• Product Inclusion: We ensure that the products developed by these businesses support not just half of the population but the entire population. Being intentional about creating essential products for female consumers is key.

Beyond Funding: Systemic Changes to Support Women in Business

TE: You mentioned the $42 billion financing gap for women-led businesses in Africa. Beyond funding, what systemic changes or policies do you believe are essential to creating an enabling environment for women?

TI: First of all, we need intentionality—both in investment and policymaking. We need policies ensuring that capital allocation isn’t overwhelmingly skewed toward men. There must be diversity at the investment allocation stage, meaning pension funds, insurance companies, and other investors must actively consider female-led businesses.

Why? Because you know what you know—if investors don’t have diverse perspectives, they won’t naturally identify opportunities that target women.

So, for me, the key elements are:

• Intentionality in investment decisions.
• Diverse allocation of capital at the funding stage.
• A clear goal to ensure Africa reaches its full economic potential through inclusive investing.

Again, the enabling business environment plays a huge role. It’s not just about injecting money into businesses; it’s also about ensuring lower costs of doing business, improved infrastructure, and overall business-friendly policies. 

Most SMEs in Africa are led by women, so when we talk about creating a better ecosystem, we are indirectly supporting these women-led businesses.

Solving the Root Cause of Gender Inequality

TE: Many organisations have launched initiatives to bridge gender inequality, yet the gap remains wide. What is the root problem that we need to address?

TI: Money makes the world go round, and we need to move beyond lip service when it comes to capital allocation.

The gender financing gap amounts to billions of dollars. Our fund is just $100 million, which is a drop in the ocean compared to the need.

If we continue prioritising only short-term, high-gain investments, then we’re not serious about sustainable development. Leaders in Nigeria and Africa must put their money where their mouth is.

When leaders talk about Nigeria being a tough place to invest, they should realise that they have the power to change that narrative. Investment in sustainable growth means investing in:

• The future of every African,
• The future of every Nigerian,
• And creating an environment where every citizen can reach their full potential.

Our conversation with Tokunboh Ishmael stressed the need to ensure financial access for female-led businesses. Bridging the gender gap has become an economic necessity. 

Today we celebrate International Day of Women and Girls in Science, and it’s time to stop treating gender inclusion as a side issue and recognise it as the foundation for long-term prosperity.

Designed to empower and advance women entrepreneurs across Nigeria, the AWIEF Growth Accelerator seeks to provide high-level business development training, growth strategy insights, mentorship, access to networks, and opportunities for financing.

The program specifically targets multi-sector businesses, with top priority given to technology-based and tech-enabled businesses operating in sectors such as agriculture, health, education, creative industry, financial services, renewable energy, logistics, and climate-smart solutions.

Benefits 

The AWIEF Growth Accelerator Program supports women-owned or women-led SMEs in Nigeria a unique opportunity to:

• Access high-level business development and growth strategy training.
• Receive corporate advisory and mentorship from industry experts.
• Gain individualized support tailored to their business needs.
• Expand their networks and access to potential investors.
• Enhance their readiness to access funding opportunities and scale up their ventures.

Eligibility

To be considered for selection, businesses must meet the following criteria:

• Businesses should be women-owned (>51%) or women-led at C-Suite or equivalent level OR Product or service specifically or disproportionately benefit women.
• Businesses should be based and operating in Nigeria.
• Must be highly innovative and scalable ventures.
• Must be in the post-revenue stage.
• Must have been in operation for not less than three years.
• Should be owned or led by ambitious and committed women entrepreneurs.
• These businesses must be seeking investment or funding to scale and expand.

How to Apply

If you are a woman entrepreneur in Africa looking to accelerate the growth of your business, then you might be interested in applying for the AWIEF Growth Accelerator Program. 

Submit your application before the deadline on Sunday, March 24, 2024, at 11:59 pm West Africa Time (WAT). Don’t miss this opportunity to take your business to the next level.

The partnership will increase access to finance and markets for women-owned and women-led small and medium enterprises (WSMEs) across Southern, East, and West Africa.

Themed “Solutions Catalysing Increased Access to Capital for the Success of Women Entrepreneurs”, the partnership births a programme that seeks to stimulate efforts to address gender inequality and drive inclusive economic transformation.

More than 500 growth-oriented WSMEs will be supported for scale, access to markets, and investment readiness across 8 African countries: Nigeria, Kenya, South Africa, Zambia, Rwanda, Malawi, Tanzania, and Zimbabwe.

The two-year programme will create a profitable pipeline of investable businesses ready to access finance.

Programme Components

The programme is organized under 4 components:

AWIEF Growth Accelerator (in partnership with Nedbank) – to enhance investment readiness and increase access to finance.

eCommerce Capacity Development (in partnership with UNIDO) – for building knowledge, capacity, and skills in digital channels to increase participation and success in online business.

Digital Skills (in partnership with Amazon Web Services) – to strengthen WSMEs capacity to embrace technology innovation.

Mentorship and Advisory – enhancing the visibility and access to role models for WSMEs through a mentorship platform.

Call for Applications for 2022 Cohort

Applications are invited from WSMEs for participation in any one of these programme components: 1) AWIEF Growth Accelerator; 2) eCommerce Capacity Development; 3) Digital Skills.

Selection Criteria

WSMEs registered and operating in: Nigeria, Kenya, South Africa, Zambia, Rwanda, Malawi, Tanzania, and Zimbabwe. Priority sectors include: Technology, Agriculture & Agribusiness, Creative Industry, eCommerce, Renewable Energy, Manufacturing, Retail, Construction, Logistics.

How to apply

Submit your application before the deadline on Monday, 18 July 2022 at 11:59pm Central Africa Time (CAT).