Small and Medium enterprises (SMEs) stand as pivotal threads, driving economic growth and food security in the world of agriculture. Yet, amidst their significance, access to finance remains a formidable barrier, hindering their potential. Recognizing this challenge, Finding XY designed the Women in Agriculture Impact Investment (WAII) Facility to unravel these complexities and address the challenges of access to finance for youth and Agri-Smes across the East-African region

Agricultural SMEs represent a cornerstone of rural economies, particularly in developing the different nations, where they contribute significantly to employment and income generation. However, women, who play a fundamental role in agricultural production, often encounter systemic barriers when seeking financial resources, perpetuating gender disparities and limiting the sector’s inclusive growth potential.

With support from USAID Feed the Future Agricultural Inclusive Markets Activity (FTF.IAM) and a commitment to foster inclusive economic development through addressing the intersectionality of gender and finance in the agricultural landscape, the WAII Facility delved into the nuanced challenges and opportunities faced by Agri-Smes, with a keen focus on gender dynamics.

We share some lessons picked from the project over the past two years below:

1. There are distinct financial needs and preferences among male and female entrepreneurs within the agricultural sector. While men often gravitated towards traditional loan products, women expressed a preference for flexible and tailored financial solutions that aligned with their unique circumstances and seasonal fluctuations.
2. Deep-rooted socio-cultural norms and practices are significant barriers to women’s financial inclusion, influencing their access to markets, information, and decision-making processes and addressing these constraints necessitates a holistic approach, encompassing cultural sensitization, capacity-building initiatives, and community engagement.
3. Digital financial services are a powerful enabler of gender-inclusive finance, offering innovative solutions to overcome traditional barriers such as geographic remoteness and lack of collateral. It is imperative that both men and women can access them and that there is digital literacy among women, ensuring they can fully harness the potential of digital platforms.
4. Collaborative partnerships are keystones of success, bridging the gap between financial institutions, Agri-Smes, and gender-focused organizations. By fostering dialogue, knowledge exchange, and collective action, these partnerships can catalyze the development of tailored financial products and supportive ecosystems conducive to women’s economic empowerment.
5. Policy and regulatory frameworks are critical in shaping the enabling environment for gender-inclusive finance. Advocacy efforts aimed at promoting gender-responsive policies, legal reforms, and institutional mechanisms are essential drivers of systemic change, fostering an environment conducive to women’s economic agency and empowerment.

Therefore, reducing the financing gap for women entrepreneurs is critical to the agricultural sector’s sustainability. Mitigating the challenge is a collective effort of impact investors, business advisors, financial institutions, and government agencies. If agriculture is truly the backbone of Africa’s economy, and women the biggest contributors to food security systems, then finding sustainable financing solutions for the Agri- SMEs is a pertinent issue worth immediate action.