A looming $31bn drop in global aid this year threatens to put pressure on credit and support systems for women-led SMEs and fintechs. Only around 2% of African startup funding (~$10m) went to female founders in Q1 this year amid a $49bn financing gap for Africa’s women-led businesses. Despite scarce funding, some women-founded businesses are breaking through: in 2025, South Africa’s Naked raised $38m, and Kenya’s Pula secured $10m to insure smallholder farmers. As shifting global geopolitics put international concessional finance and donor-backed guarantees at risk, how can African financial institutions bridge the gap for women entrepreneurs?
Key points:
- How can African banks and insurers design sustainable instruments to finance women-led SMEs and fintechs post-aid?
- What role can fintech and Insurtech innovation (mobile money, alternative credit scoring) play in widening access to finance for women entrepreneurs?
- In a transactional world, what level of support can be expected from DFIs and overseas sovereign aid to develop women’s entrepreneurship?