This $200mn fund aims to advance gender equity in entrepreneurship

The Mastercard Foundation Africa Growth Fund has recently launched a $200 million fund aimed at advancing gender equity in entrepreneurship across the African continent. In an exclusive interview with CNBC Africa, Samuel Akyianu, Chief of Party of the Mastercard Foundation Africa Growth Fund, discussed the fund's intent to empower women entrepreneurs and the progress they are making towards achieving this goal. Akyianu highlighted that the growth fund operates as a fund of funds, seeking to invest in up to 20 different financial intermediaries or capital investment vehicles that will support small and medium-sized enterprises (SMEs) in Africa. The fund is specifically focused on impacting women and youth entrepreneurs on the continent, with a strategic focus on gender lens investing. Gender lens investing involves actively seeking investment vehicles that incorporate governance representatives of accomplished women, have gender-diverse senior teams, and invest in businesses that cater to or are led by women. While the fund prioritizes women-centric businesses, it also emphasizes gender diversity in its investment portfolio. Akyianu pointed out that currently, the percentage of women-owned businesses receiving financial support in Africa is below 20%, with some estimates placing it as low as 15%. The Mastercard Foundation Africa Growth Fund aims to address this disparity by providing capital investment ranging from $50,000 to early millions to support businesses of varying sizes. The fund's approach involves not only providing financial support but also offering technical assistance to help women-led businesses navigate their growth paths. Akyianu emphasized the importance of disrupting biases in financing and providing the necessary support for businesses to succeed. One key aspect of the fund's strategy is to assist SMEs in accessing growth capital and creating sustainable job opportunities. By investing in a diverse range of businesses and industries, the fund aims to not only support individual entrepreneurs but also contribute to the economic development of Africa as a whole. Overall, the Mastercard Foundation Africa Growth Fund is committed to driving meaningful change in the entrepreneurial landscape by empowering women entrepreneurs, promoting gender equity, and fostering sustainable business growth across Africa.