Standard Bank’s Initiative to Secure $1 Billion for Women-Led Businesses in Africa

Standard Bank is leading an initiative to secure $1 billion (R17.6 billion) over the next decade for the African Women Impact Fund (AWIF), aimed at empowering women fund managers across Africa. These funds will subsequently be invested in businesses led by women throughout the continent.

The urgency for the AWIF has never been more apparent. Women are significantly underrepresented in Africa’s workforce, and a 2023 report from Africa: The Big Deal indicates that female-only businesses received a mere 2.4% of total venture capital funding in Africa.

Thobile Finca, the AWIF programme manager at Standard Bank, highlights the rationale for investing in women-led enterprises: “Women fund managers are twice as likely to support other female-led businesses. Unfortunately, women-led enterprises often don’t receive the same level of respect as those run by men, which can be attributed to historical biases and stereotypes.”

The AWIF is a collaborative effort involving the United Nations (UN) Economic Commission for Africa, UN Women, and the African Union Commission, spearheaded by the African Women Leadership Network with Standard Bank Group as the main sponsor. RisCura Invest acts as the investment manager and fund manager incubator, with MiDA Advisors providing strategic guidance.

Standard Bank has collaborated with the Department of Women, Youth and Persons with Disabilities to host a significant event at the upcoming G20 meeting. “The goal is to unify the African continent under a common vision for women’s economic empowerment and inclusion,” Finca notes.

The AWIF consists of two primary components:

• The AWIF Foundation, which supplies working capital and operational support to women fund managers, particularly those in the fundraising phase. So far, $24 million has been raised, with some of it allocated to assist 10 fund managers across Africa through working capital grants and back-office support. RisCura Invest ensures these businesses are sustainable, scalable, and ready for investment.
• The AWIF Fund, which provides capital to women-led businesses. Finca mentions that Africa offers numerous appealing opportunities for investing in women-led enterprises, crucial for portfolio diversification and accessing new growth markets. However, a lack of data often leaves many investors unaware of these opportunities, especially regarding women-led startups and female entrepreneurs.

Finca, with 12 years at Standard Bank Group and prior experience at STANLIB in its multi-manager division, says, “Throughout those years, we never focused on women-led businesses. Our investments leaned towards male-dominated funds. When the chance arose to partake in this fund, I seized it – for the opportunity to support women in our industry’s growth and development.”

She acknowledges the challenge of persuading funders that investing in women-led businesses is viable. Pension funds, family offices, and other potential funding sources tend to favor traditional stock exchanges, bond markets, and occasional private equity ventures.

“Everyone talks about supporting women in business, but the reality shifts when it comes to providing funding. We engage with pension funds, family offices, foundations, and anyone seeking to invest in women-led businesses. They prefer direct investment, viewing us as an intermediary between their capital and the investment opportunities.”

“We have the advantage of deploying funds with asset managers in amounts often too small for pension funds, thus providing the scale needed for compliance with their mandates. Furthermore, we offer diversification across various managers, regions, and sectors.”

The challenge of securing support for many women-led businesses lies in their limited or nonexistent track record. The asset managers chosen to deploy the funds each have over a decade of experience, and RisCura Invest brings a comprehensive understanding of the processes and risks involved, reassuring investors that the anticipated 15% internal rate of return is attainable.

The AWIF promises convincing benefits despite lacking historical performance data: the funds will be regionally allocated across Africa, and of the 55 asset managers in the AWIF pipeline, 23 have been shortlisted and vetted for fund deployment. These are women-led asset managers actively investing in private markets within their communities, spanning from Nigeria to Morocco, Kenya, Egypt, and South Africa, across a range of sectors including agriculture, healthcare, fintech, and education.

“Women typically invest with a future focus and often in underserved sectors. They make excellent fund managers. Extensive research shows they are meticulous with finances, cautious about incurring debt, and eager to support future-oriented businesses,” Finca adds.

Standard Bank aims to finalize a $150 million fundraising by Q4 of 2025 and has seen some progress with South African pension funds, provided these investments remain within South Africa. Finca is currently engaging with additional pension funds and development finance institutions (DFIs) across Africa to encourage them to act as anchors for the fund. Standard Bank will also contribute funds.

“The main issue for women SMEs is the availability of capital. There’s a heavy reliance on networks and sometimes angel investors to kick-start their ventures. Consequently, many women find themselves trapped in the informal sector. They often lack sufficient revenue to attract the interest of banks, and this is where the AWIF Foundation steps in. It aims to help these businesses overcome this obstacle and become more bankable.”

Brought to you by Standard Bank Group.

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