This archive report was first published on 11 July 2019.
Graça Machel in Kenya to Boost Funding for Women-Led Businesses ¶
Published on July 11, 2019
Graça Machel, a renowned international advocate for women's and children's rights, is in Kenya to launch Invest2Impact, a funding initiative for women-led businesses. The initiative aims to bridge the gap between women entrepreneurs and funders or investors.
According to Graça Machel, empowering women is essential for communities to thrive. She noted that research shows that increasing women's involvement leads to improved financial management and more sustainable, thriving communities.
Invest2Impact is an entrepreneur competition targeting women-led businesses. In its pilot phase, the competition will focus on 100 participants from Kenya, Ethiopia, Tanzania, Rwanda, and Uganda. The participants will be categorized into four tracks: 2Xcelerate, 2Xcrowd, 2Xcapital, and 2Xcatalyse.
The 2Xcelerate track targets women-led businesses that support or are aligned with the UN Sustainable Development Goals. The track will see 25 finalists compete for cash prizes of Ksh.8,749,900 ($85,000), recognition at a gala winner's event, and participation in the Invest2Impact funding readiness program.
The 2Xcrowd track is designed for revenue-positive businesses seeking sizeable investment, usually over Ksh.308,700,000 ($3 million). The track will see 25 businesses receive customized, tailored support and mentorship to implement an Africa or global crowdfunding strategy.
The 2Xcapital track targets smaller businesses that seek funding less than Ksh.308,700,000 ($3 million). The track will see 25 applicants who are selected from the Invest2Impact participants benefit from access to funding programs.
The 2Xcatalyse track will see 25 female entrepreneurs selected to attend a major international expo, conference, or event in their industry sector with sponsored travel, attendance fees, and promotional material.
Ms. Machel noted that the decision to focus on women entrepreneurs was made because of the significant contribution that they make to their economies. She added that these enterprises, if allowed to achieve their full growth potential, can contribute to employment growth, enhanced regional trade, and spur more activity amongst budding entrepreneurs.
Stephanie Emond, FinDev Canada Director, noted that the Invest2Impact initiative is not a one-size-fits-all strategy. She added that the organisers work and walk with the entrepreneur, making it stand out for those looking to take part in it.
Andia Chakava, an Investment Director, noted that a lot of women operate their businesses on digital platforms such as WhatsApp groups. She added that finance institutions must take this into consideration in their messaging.
Liz Akuku, an entrepreneur and founder of Liku by Squeezie, affirmed that gender funding gaps are the biggest challenge for women-led businesses. She noted that financial institutions need to really have conversations with those in different markets as opposed to offering generalised funding.
