Africa Investment Forum - Capital Allocation Inefficiency Hinders Women Entrepreneurs' Potential - Nialé Kaba

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Empowering Women Entrepreneurs: A Strategic Shift in African Development

At the 2025 Africa Investment Forum Market Days, Nialé Kaba, Côte d'Ivoire's Minister of Economy, Planning and Development, emphasized the untapped potential of women entrepreneurs across the continent. She described them as "gold mines," highlighting that with the right financial instruments and political will, these ventures could become collective victories for Africa. Her remarks came during a high-level workshop hosted by the African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) program, which focused on leveraging blended finance to close the gender financing gap and drive inclusive economic growth.

Kaba pointed out that the statistics surrounding women-led businesses are not just numbers—they represent lost opportunities. "They reveal talents burned, initiatives extinguished, and economic potential unexploited," she said. She stressed that the inefficiency in capital allocation must be addressed if Africa is to achieve its full economic emergence.

Despite the fact that African women have the world's highest rate of entrepreneurship at 24 percent, they face a nearly $50 billion financing gap. Kaba, who also serves as the Bank Group's Governor for her nation, noted that women entrepreneurs demonstrate an average non-performing loan rate of just 2.4 percent—consistently lower than market averages. This highlights a clear market failure where profitability is proven but capital remains inaccessible.

Addressing the Root of the Problem

Marie-Laure Akin-Olugbade, Senior Vice President of the African Development Bank, called for a strategic shift in financial incentives. She urged the creation of mechanisms that go beyond traditional guarantees to actively reward financial institutions for lending to women entrepreneurs. "When we talk about blended finance, we often mention guarantees. Rightly so, because they provide a financial shield. They reassure banks and reduce risks," she said. "But this morning, I want to talk not about protection and defense. We want to be on the offensive."

She emphasized the need to tackle the root of the problem—the cost of credit. AFAWA's results show exceptional leverage. In Tunisia, working with Banque Tunisienne de Solidarité (BTS), it has reached nearly 6,000 women entrepreneurs. In South Africa, in partnership with ABSA, the impact has been impressive: for every million dollars in donor financing provided, AFAWA generated $75 million in financing for women entrepreneurs. This modern development finance model has a ratio of 1 to 50, 1 to 75.

Digital technology plays a crucial role in breaking down barriers. Akin-Olugbade noted that a woman entrepreneur in Nairobi or Rabat doesn't necessarily need a physical bank branch. "She simply needs a platform," she said.

Changing the Narrative Around Women Entrepreneurs

Dr. Jemima Njuki, Director of Gender, Women and Civil Society at the African Development Bank, called for a shift in the narrative around women entrepreneurs. For decades, the focus was on vulnerability, but she urged a change in perspective. "This is not a vulnerable group. This is the most dynamic and most underserved investment asset on our continent," she said.

With 194 million women entrepreneurs currently in Africa, the population is projected to surge to 239 million by 2035—the highest rate of female entrepreneurship in the world. AFAWA has moved from promise to proof of concept, with $2.8 billion approved and $1.33 billion already disbursed through partnerships with 195 financial institutions across 45 countries. The program has impacted nearly 25,000 women entrepreneurs through financing and capacity building support.

Njuki posed a critical question: "The architecture is ready, the strategy is sound, the women are ready, and the only question remaining is: are you ready to invest in the champions of Africa's economic future?"

Success Stories and Future Strategies

Yacine Fal, Special Representative of the Bank Group's President to the Africa Investment Forum, moderated a panel featuring women entrepreneurs who have successfully leveraged blended finance to scale their operations and transform communities.

Yemisi Iranloye, Founder and CEO of Psaltry International, shared her journey of revolutionizing cassava processing in rural Nigeria. "Back then, it was very hard for women to get funded," she said. "If a man had to do just five things to raise a million dollars, a woman would need to do about 15." Iranloye found success after receiving blended finance from Alitheia Capital, an AFAWA-backed Lagos-based impact investing firm. Today, Psaltry operates Africa's first cassava-based ethanol plant and supports over 10,000 women farmers.

A second panel explored strategies for unlocking domestic pension funds and commercial banks that hold trillions of dollars currently invested primarily in real estate rather than small and medium enterprises.

Kaba concluded: "Blended finance is a strategic tool that we must use massively to increase capital access for our entrepreneur sisters to liberate their full potential."