Standard Bank’s Plan to Raise $1 Billion for Women-Led Enterprises in Africa

Standard Bank is spearheading an initiative to secure $1 billion (R17.6 billion) over the next ten years for the African Women Impact Fund (AWIF), designed to empower women fund managers throughout Africa. These funds will be invested in businesses led by women across the continent.

The need for the AWIF has become increasingly urgent. Women are greatly underrepresented in Africa’s workforce, and a 2023 report from Africa: The Big Deal reveals that female-only businesses received only 2.4% of total venture capital funding in Africa.

Thobile Finca, the AWIF programme manager at Standard Bank, emphasizes the importance of investing in women-led enterprises: “Women fund managers are twice as likely to support other female-led businesses. Unfortunately, women-led enterprises often do not get the respect they deserve compared to those run by men, which can be traced to historical biases and stereotypes.”

The AWIF is a collaborative initiative that involves the United Nations (UN) Economic Commission for Africa, UN Women, and the African Union Commission, led by the African Women Leadership Network with Standard Bank Group as the principal sponsor. RisCura Invest serves as the investment manager and fund manager incubator, while MiDA Advisors offers strategic support.

Standard Bank has partnered with the Department of Women, Youth and Persons with Disabilities to orchestrate a major event at the upcoming G20 meeting. “The aim is to unite the African continent under a shared vision for women’s economic empowerment and inclusion,” Finca remarks.

The AWIF encompasses two main components:

• The AWIF Foundation, which provides working capital and operational support to women fund managers, particularly during the fundraising phase. So far, $24 million has been raised, some of which has been allocated to assist 10 fund managers across Africa through working capital grants and back-office support. RisCura Invest ensures these ventures are sustainable, scalable, and prepared for investment.
• The AWIF Fund, which offers capital to women-led businesses. Finca notes that Africa presents various attractive opportunities for investing in women-led enterprises, essential for portfolio diversification and tapping into new growth markets. However, a significant lack of data often leaves many investors unaware of these opportunities, particularly regarding women-led startups and female entrepreneurs.

Finca, who has 12 years of experience at Standard Bank Group and previously worked at STANLIB in its multi-manager division, states, “Throughout those years, we never prioritized women-led businesses. Our investments were mostly directed toward male-dominated funds. When the opportunity to join this fund arose, I seized it – to support women in our industry’s growth and development.”

She acknowledges the challenge of convincing funders that investing in women-led businesses is worthwhile. Pension funds, family offices, and other potential funding sources often prefer traditional stock exchanges, bond markets, and sporadic private equity ventures.

“Everyone speaks about supporting women in business, but the reality shifts when it comes to funding. We are in discussions with pension funds, family offices, foundations, and any entities interested in investing in women-led businesses. They favor direct investment, viewing us as intermediaries between their capital and the investment prospects.”

“We can deploy funds through asset managers in amounts often too small for pension funds, thereby providing the scale required for compliance with their mandates. Additionally, we offer diversification across various managers, regions, and sectors.”

The challenge of securing backing for many women-led businesses arises from their limited or nonexistent track records. The selected asset managers tasked with deploying the funds each possess over a decade of experience, and RisCura Invest provides a thorough understanding of the processes and risks involved, assuring investors that the targeted 15% internal rate of return is achievable.

The AWIF promises significant advantages, despite the absence of 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, from Nigeria to Morocco, Kenya, Egypt, and South Africa, across various sectors including agriculture, healthcare, fintech, and education.

“Women generally invest with a long-term perspective 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 foster future-oriented businesses,” Finca adds.

Standard Bank aims to complete a $150 million fundraising campaign by Q4 of 2025 and has noted some progress with South African pension funds, provided these investments remain domestic. Finca is currently engaging with more 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 challenge for women SMEs is the availability of capital. There is a heavy reliance on networks and sometimes angel investors to launch their ventures. As a result, many women find themselves confined to the informal sector. They often lack sufficient revenue to attract bank interest, which is where the AWIF Foundation comes in. It aims to assist these businesses in overcoming this hurdle and becoming more bankable.”

Brought to you by Standard Bank Group.

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