Past the first loan: What it really takes to finance Africa’s women entrepreneurs
A woman running a profitable trading business in Lagos or Addis Ababa can get her first loan today in ways that were impossible a decade ago. Alternative data and AI-enabled scoring are helping lenders identify creditworthy women-owned businesses that traditional crediting overlooks entirely. While that’s a leap, it doesn’t go far enough. Current evidence proves […]
A sharper lens: Banks can better serve women-owned SMEs by redesigning their operating models
A sharper lens: Banks can better serve women-owned SMEs by redesigning their operating models Lending to women-owned business could be a growth engine for African banks, but revamped ’gender-intentional’ credit models may be needed to serve these borrowers profitably. Dalberg Advisors argues that alternative forms of collateral, credit scoring based on cash-flow and behavioural data, and tailored loans should replace traditional lending models. By Lillian Kidane & Chimdi Onwudiegwu In 2016, KCB Bank Kenya found that only about 7% of […]