NCBA has recently renewed its partnership with the African Guarantee Fund (AGF) to offer enhanced financial support to small and medium-sized enterprises (SMEs) in Kenya, especially women-led businesses.

This renewal, which expands the credit facility to KES 3 billion over the next 10 years, highlights the commitment of both organisations to empower SMEs and promote gender-inclusive economic growth.

Supporting Women Entrepreneurs with Tailored Financial Solutions

The renewed pact focuses on offering flexible, long-term financial solutions, particularly for women entrepreneurs, by leveraging AGF’s risk-sharing model.

This mechanism enables NCBA to provide credit facilities with reduced risk, allowing more SMEs, especially those led by women and youth, to access much-needed financing.

The partnership has already yielded impressive results: NCBA has disbursed KES 17 billion in loans, supporting 696 SMEs and creating over 7,200 jobs, with 2,200 of those jobs benefiting women.

Addressing Barriers to Accessing Capital for Women

This partnership is a direct response to the challenges women entrepreneurs face in accessing capital. Women often encounter significant barriers when seeking financial support, such as limited collateral and biased lending practices.

The renewed agreement allows NCBA to offer more tailored financial solutions that specifically address these challenges.

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NCBA’s Group Managing Director, John Gachora, noted, this partnership is a testament to the bank’s devotion to supporting women-led businesses, especially those championing sustainable practices.

Mentorship and Education for Women Entrepreneurs

In addition to providing loans, NCBA is focused on offering business education and mentorship to women entrepreneurs.

The bank aims to equip women with the necessary skills and networks to scale their businesses. A recent International Women’s Day dinner in Kapsabet showcased NCBA’s continued commitment to women’s economic empowerment, where the group highlighted its role in promoting gender parity in business.

Programs like these ensure that women are not only supported financially but are also given the resources to build sustainable and successful enterprises.

Promoting Sustainability Through Green Projects and Women’s Empowerment

The partnership also emphasises the importance of sustainability. NCBA and AGF are particularly keen on supporting businesses in renewable energy and sustainable agriculture sectors, areas where many women entrepreneurs are already active.

By offering tailored loans to businesses in these fields, NCBA is helping women-led businesses contribute to Kenya’s green economy, which is crucial for long-term growth.

This aligns with the AGF’s Affirmative Finance Action for Women in Africa (AFAWA) initiative, which seeks to increase access to financing for women entrepreneurs across Africa.

Capacity Development for Women-Led SMEs

Furthermore, AGF’s Capacity Development grant will help NCBA build a pipeline of credit-ready women-led SMEs.

This initiative will help address the skills gap among women entrepreneurs and ensure that they are better prepared to access financing. This is crucial in helping women-led businesses grow and thrive in competitive industries.

Building Inclusion and Diversity

The renewed partnership also supports NCBA’s broader goals of promoting inclusion and diversity. For instance, the Group has committed to directing at least 30% of its procurement to women and youth, ensuring that these groups have access to opportunities in various sectors.

Through its collaboration with Proparco, NCBA has also committed KES 6.5 billion to support green financing and women’s economic empowerment. These efforts align with the bank’s broader agenda to foster economic growth and support sustainable development.

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Community Investment and Long-Term Impact

Additionally, NCBA invests KES 150 million annually in community development, education, and sports. This commitment further enhances its efforts to create an inclusive society where women entrepreneurs can access resources, networks, and opportunities to succeed.

Empowering Women-Led Businesses for a Stronger Economy

In conclusion, the renewal of the NCBA-AGF partnership is a significant step forward in empowering women-led businesses in Kenya.

By providing tailored financial solutions, business education, and a supportive environment for growth, this collaboration is helping women entrepreneurs overcome the barriers to success.

As the Kenyan economy continues to evolve, women-led enterprises, with the support of NCBA and AGF, are positioned to play a key role in driving innovation, creating jobs, and contributing to sustainable economic growth.