Women entrepreneurs in sub-Saharan Africa, like Augustina Tufuor, face an uphill battle when it comes to accessing finance and expanding their businesses. Tufuor, a 30-year-old entrepreneur from Ghana, founded Tropical Snacks, a company producing all-natural plantain chips. Despite her innovative product and early success, financial barriers stifled her growth.
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Traditional banks demanded 20,000 Cedis as collateral and required a professional evaluator before even considering her loan application. On top of this, the steep interest rate of over 36% made it nearly impossible for her to secure the funds needed to expand.
Tufuor’s struggle reflects a widespread issue that affects many women-led businesses across sub-Saharan Africa. According to the International Trade Centre (ITC), over 70% of women entrepreneurs in Africa lack access to formal financial services. This gap leaves many dependent on informal savings groups or personal networks to fund their ventures. The challenges aren’t limited to finance—many women also lack access to land, technology, and markets, further compounding their struggles.
Structural Barriers for Women Entrepreneurs
The systemic barriers faced by women entrepreneurs in Africa stem from a variety of factors. Traditional banks and lending institutions often require collateral, high-interest rates, and a level of financial literacy that many small business owners, especially women in rural areas, cannot meet. These requirements disproportionately affect women, particularly in sectors like agriculture, where ownership of assets such as land is skewed toward men. Without access to collateral, women entrepreneurs are left with limited options for growing their businesses.
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The World Bank estimates that women account for nearly half of the agricultural labor force in sub-Saharan Africa, yet they receive only a fraction of the agricultural credit, extension services, and technical support that men receive. This inequality in resource allocation stifles innovation and limits the potential of women entrepreneurs to scale their businesses.
Addressing the Financial Gap: The EWAT Program
To address these challenges, international organizations like the Food and Agriculture Organization (FAO) and the ITC have launched programs specifically designed to empower women entrepreneurs in agriculture. One such initiative is the Empowering Women and Boosting Livelihoods through Agricultural Trade (EWAT) program. Launched across six African countries, including Ghana and Nigeria, EWAT seeks to provide women entrepreneurs with the tools they need to participate in the African Continental Free Trade Area (AfCFTA).
The EWAT program offers training in areas such as product development, sales and marketing, and financial readiness. By equipping women with these critical skills, the program aims to help them overcome the barriers that have traditionally prevented them from accessing finance and scaling their businesses.
For entrepreneurs like Augustina Tufuor, these programs can be a lifeline. “The training helped me understand how to present my business in a way that is attractive to investors,” says Tufuor. “I learned how to better communicate my financial needs and how to structure my business to appeal to formal lending institutions.”
Success Stories: Women Entrepreneurs Benefiting from EWAT
Asma Begum Mirza, a 61-year-old agripreneur from Nigeria, also faced significant financial hurdles in growing her agricultural business. Like Tufuor, she struggled with high-interest rates and collateral requirements that made securing a loan nearly impossible. After attending EWAT’s Financial Readiness Bootcamp in Lagos, Mirza was able to refine her business plan and present a more compelling pitch to investors.
“The bootcamp gave me the confidence to approach financial institutions and investors,” says Mirza. “It wasn’t just about learning the technical skills—it was about building a network of support among other women entrepreneurs facing the same challenges.”
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EWAT’s focus on practical, hands-on training is coupled with efforts to engage financial institutions. By working with banks and other lenders, EWAT aims to develop loan products tailored to the needs of women in agribusiness. These products often feature more flexible collateral requirements and lower interest rates, making them more accessible to women entrepreneurs.
FAO’s Senior Gender Officer, Clara Park, emphasizes that gender equality is central to FAO’s mission. “We recognize that empowering women in agriculture is key to improving food security and economic growth in Africa. Through EWAT and other programs, we are working to break down the structural barriers that have held women back for too long.”
The Path Forward: Bridging the Gender Gap in Agriculture
The impact of programs like EWAT extends beyond the individual entrepreneurs they serve. By helping women-led businesses access new markets and finance, these initiatives are contributing to broader economic growth in the region. Research shows that closing the gender gap in agriculture could increase agricultural output in sub-Saharan Africa by up to 20%, according to the FAO.
However, much work remains to be done. While programs like EWAT are making a difference, access to finance remains one of the most significant challenges for women entrepreneurs in Africa. To truly level the playing field, more needs to be done at the policy level to address the systemic inequalities that women face.
Governments and international organizations must continue to prioritize gender equality in their development agendas. This includes reforming land ownership laws, improving access to technology, and creating financial products that are designed with women entrepreneurs in mind. By investing in women, African nations can unlock a wealth of untapped potential, driving economic growth and improving livelihoods across the continent.
By equipping women entrepreneurs in sub-Saharan Africa with the knowledge, skills, and access to finance they need, programs like EWAT are paving the way for a more equitable and prosperous future. For women like Tufuor and Mirza, the future looks brighter than ever.
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