Funds to Support Women & Youth In Agribusiness approved by African Development Bank Group Board

The European Union (EU) contributed the funds through its cooperation with the African Development Bank Group, which was authorised on June 6, 2023.

The African Development Bank Group's Board of Directors (www.AfDB.org) has authorised an equity investment of €18 million in the Africa Guarantee Fund (AGF) and an additional €1.2 million to help young and female business owners working in Kenyan agricultural value chains.

The European Union (EU), in accordance with its collaboration with the African Development Bank Group, contributed the cash, which was authorised on June 6, 2023.

The clearance, according to Ms. Nnenna Nwabufo, the director general of the Bank Group for East Africa, is "another milestone in the implementation of the partnership with the EU, which also signals the importance given to the role of women and youth in the agricultural sector in Kenya." 

The Covid-19 pandemic's repercussions have made the demand for Micro, Small, and Medium Enterprises (MSME) finance in Kenya even more pressing. According to the International funding Corporation (IFC), the country's GDP, or $19.38 billion, is needed to close the SME funding gap.

According to the Covid-19 Business Pulse Survey (BPS) by the World Bank, many potentially successful businesses are still having difficulties. The majority of the population, particularly in rural regions, is employed in the agricultural industry, which also generates 60% of Kenya's exports. Youth (18 to 35 years old) make up 64% of Kenyans without jobs, according to statistics from the Kenya Youth Agribusiness Strategy 2017–2022, with the majority leaving agriculture for rapidly expanding non-agricultural industries in urban areas.

There are several barriers that women must overcome in order to acquire financing and expand their enterprises.  Inadequate access to networks and information, legal, societal, and regulatory restrictions, a lack of company management skills, and insufficient funding choices that address their particular requirements are a few of these.

Due to the poor quality or scarcity of available assets as security and the typical lower firm sizes, banks frequently view women-owned enterprises as dangerous. Therefore, encouraging private investment in this sector and assisting women entrepreneurs are essential steps to promote inclusive economic growth in Kenya.

The Kenya National Bureau of Statistics' 2017 Economic Survey indicates that commercial bank lending to the industry in 2016 was just 3% due to the significant risk associated with this client category.