Women’s Accelerator Mentorship programme in Africa – Access to Finance workshop

As part of the Accelerator Mentorship Programme, FAO is working together with the International Agri-Food Network (IAFN) to support 50 women entrepreneurs from across Sub-Saharan Africa to address key challenges and constraints and expand their businesses. 

More than 80 women entrepreneurs came together on March 8 for Access to Finance, the third and final workshop organized by FAO and IAFN to connect up-and-coming women entrepreneurs from across Sub-Saharan Africa with leaders in agriculture, finance and business. The workshop gathered experts in the agri-food business and finance field to provide mentees with practical skills and knowledge to enhance their ability to obtain financing capital for their enterprises.  

By the end of the workshop, mentees had been provided with in-depth information on running company bank accounts, managing investments and revenues, and boosting their savings; creating business plans; applying for and managing loans, enhancing creditworthiness and diversifying the sources of company funding; and gaining access to sources for financing through loans, investments, grants, and fundraising. 

Throughout the panel discussion, speakers shared their experience in identifying financing venues and options, including those beyond commercial banks such as grants, foundations and angel investors.

In the discussion on Value chain financing, entrepreneurs learned how they could leverage the information that only they possessed to attract investors to their projects. Mr. Massimo Pera, FAO’s Agribusiness Officer from the Regional Office for Africa (RAF), explained that banks, microfinance institutions and investors can sometimes lack crucial information, as these entities generally have no dedicated intelligence unit for identifying specific opportunities. This is precisely, he said, where the mentees can leverage their own specific knowledge and information. Massimo said that the actors throughout the value chain, such as buyers, traders, input providers, farmers and processors, often have access to information that financial institutions typically do not.  FAO’s role is to bring together these different actors, and to act as a broker and facilitator between them.   

Moreover, Massimo stressed, a sound business plan is vital. He gave concrete examples from the cassava value chains in Malawi and Cote D’Ivoire where, based on sound business plans showing good financial returns, investors were eager to go the field and invest due to the information they were presented with. If banks do not want the burden of risk, the risk can instead be distributed among the value chain actors through, for example, tripartite agreements to leverage on outgrower schemes, or asset guarantees such as warehouse receipt systems.  

The remaining speakers provided insights on the typical challenges that women-led businesses face such as the difficulty in accessing conventional financing. Panelists gave attendees practical suggestions on the importance of opening a bank account to create a simple yet effective record of their business, showing in-depth knowledge of their sector to prospective investors, having business and marketing plans at the ready as well as a pitch deck to provide a snapshot of their finances. 

Lastly, the panel discussed traditional and alternative instruments to serve women start-ups and SMEs such as debt, grants and equity, including angel investment and VCs. For instance, grants through foundations generally have more flexible payment plans, compared with angel investors who aside from financing come in with their own knowledge that can be vital for the success of the business. Alternative instruments included revenue-based financing, debt agreements based on a percentage of revenue, and redeemable equity, where investors can purchase shares and share buy-backs. 

During the Breakout room session, participants had the opportunity to engage directly with the panel of experts and contributors. The mentees each had the opportunity to give a two-minute “elevator pitch’’ presenting their business and products, and to expand upon the kind of investment they were looking for.

Workshop speakers:

The breakout rooms were divided based on the mentees’ region: West Africa (English), West Africa (French), East Africa (English) and South Africa (English). 

Moderator: Ms. Marieme Esther Dassanou, Coordinator of Affirmative Finance Action, African Development Bank (AfDB)

Firestarter Panel:

• Mr. Massimo Pera, Agribusiness Officer, FAO Regional Office for Africa (RAF)
• Ms. Maya Stewart, Co-Founder, Lenziemill Milling Ltd.
• Ms. Rachel Macauley, Principal, Draper Richards Kaplan Foundation
• Ms. Mirte Smits, Rabo Partnerships, Rabobank

Firestarter and Breakout Rooms:

- East Africa group (English)

• Ms. Rachel Macauley, Principal, Draper Richards Kaplan Foundation
• Ms. Nicole Kamanzi, Regional Business Manager, Bank of Kigali
• Ms. Charity Jepkosgei, Corporate Financial Analyst, Raisin Capital & Investments
• Ms. Jona Repishti, Head of Global Gender Programs, Digital Green

- West Africa group (English)

• Dr. Bettina Prato, Lead Policy and Technical Advisor to the Associate-Vice President for Programme Management, IFAD 
• Ms. Stefania Lenoci, Head of Private Sector Investment Unit, International Fund for Agricultural Development (IFAD)
• Mr. Cesare Antonio, Private Sector Advisory and Implementation Unit (PAI) Consultant, International Fund for Agricultural Development (IFAD)

- West Africa group (French)

• Mr. Massimo Pera, Agribusiness Officer, FAO Regional Office for Africa (RAF) 
• Ms. Marieme Esther Dassanou, Coordinator of Affirmative Finance Action, AfDB

- South Africa group (English)

• Ms. Niki Neumann, Head, Agri-business Platforms & Innovation, Standard Bank Group (Facilitator)
• Ms. Maya Stewart, Cofounder, Lenziemill Milling Ltd.
• Ms. Lara Gilmour, Editor in Chief, Global Pulse Confederation
• Ms. Mirte Smits, Rabo Partnerships, Rabobank
• Mr. Motsipiri Mojapelo, Standard Bank Group 
• Ms. Morongoa Kobe, Standard Bank Group 
• Ms. Auxilia Kambasha, Standard Bank Group 

More about the Programme:

FAO-IAFN Accelerator Mentorship Programme is a joint initiative to select fifty women entrepreneurs from countries across Sub-Saharan Africa to participate as mentees in a six-month programme (October 2022 to March 2023). The mentorship will focus on helping participants grow their businesses and adapt to the demands of an ever-changing marketplace. Participants are paired with a mentor – a leader in their field who can share their knowledge and experience – and receive one-on-one mentoring throughout the duration of the programme. The programme is accompanied by the FAO eLearning Academy coursework, helping participants deepen their skills in business development, marketing and leadership, and complemented by a series of expert-led workshops on selected topics designed to facilitate peer-to-peer learning and networking. 

Private sector involvement through Micro, Small, Medium-Sized Enterprises (MSMEs), particularly those led by women are crucial to rural economic development and growth. While being key agents in bringing about sustainable agricultural development, women entrepreneurs continue to face numerous challenges and constraints in their businesses. Through this programme, FAO and IAFN aim to tap into women’s crucial role in contributing to food security and agri-food system transformation.