Absa Bank Kenya has committed a Sh10 billion loan ($100 million) fund for women-led startups and small and micro enterprises (SMEs) in Kenya amid rising banking competition and calls for support of the sector by the government. Customers will access loans of up to Sh3 million ($30,000) within a 48-hour turnaround period, facilitated through a new facility dubbed Wezesha Express.
“The Wezesha Express is a new proposition we included because we know the customers need speed and efficiency. Customers will need to produce 12-month bank statements from any bank or M-Pesa transactions,” director of business banking at Absa Bank Kenya, Elizabeth Wasunna said.
Here Is All You Need To Know
- The Absa Bank fund for startups and SMEs was announced during a Women in Business Forum organised in conjunction with the International Trade Centre (ITC) as part of the SheTradesKE Programme which the bank has been implementing in Kenya over the last four years.
- Under the initiative, loans will be advanced at 13 percent interest rate and repaid within three years.
“The kitty will be available to any woman who has a viable business plan and already doing business across all sectors.”.
- The announcements on the kitty boost are expected to boost the lender’s existing Wezesha Biashara campaign that was launched in 2016 to target SMEs.
- Recently, it revamped this financing product to include unsecured loans of up to Sh10 million with repayment period of six years, local purchase order financing and invoice discounting of up to Sh50 million.
- Absa Bank will also be training the women in a partnership deal with United States International University.
- According to ITC, women-led SMEs represent 20 percent of the businesses involved in international trade. Through the SheTrades initiative, ITC is planning to bring more than 3 million women-led businesses to market by 2021.
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- In Kenya, the SheTradesKE programme aims to empower more than 10,000 women in the SMEs sector with the skills and resources they need to effectively compete on the global stage. So far, more than 3 500 Kenyan women have benefitted from the programme through mentorship, training and capacity building conducted via Webinar, face to face interactions and workshops.
“Women form over 50% of the local and global population and account for a significant percentage of the SME sector. However, their participation in national economic development is often stifled by limited access to financial resources and social-cultural restrictions. We are confident that this proposition, coupled with the additional interventions we continue to make, will go a long way in boosting their growth,” Absa Bank Kenya Managing Director Jeremy Awori said.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.
He could be contacted at udohrapulu@gmail.com