Adapting Women’s Markets Strategies for a Greener Future

2 Minutes Read

Small and medium-sized enterprises (SMEs) contribute 40% of private sector greenhouse gas emissions (OECD, 2023), making their transition to net-zero operations critical. Yet financing remains a significant barrier—70% of SMEs report needing additional capital to advance their climate initiatives, according to a 2023 SME Climate Hub survey.

Alliance members are now applying proven Women’s Markets strategies to address this challenge, combining tailored financial instruments with comprehensive non-financial services to help SMEs succeed in their sustainability journey.

Bank of Africa’s Ecosystem Awareness-Building

Bank of Africa has emerged as a regional leader through its Entrepreneurship Observatory, an ecosystem of over 60 public and private partners. This initiative enabled $2.4 billion in SME lending in 2023, including $700 million for climate-related projects.

The fact that Morocco has seen a reduction in the number of women participating as entrepreneurs in the past 10 years, Bank of Africa is doubling down on supporting more women to start a business as well as working with Co-Operatives of women producers of Argan Oil, Saffron and Olive Oil, to support them to export to the European Union and to meet the climate standards necessary to do so. A great example of the intersection of climate and gender.

ProCredit’s Integrated Approach

ProCredit’s research on the agricultural sectors in some of the countries in which it operates revealed that it is women who tend to be more aware of current climate impacts and future risks, as they often manage family farm operations despite not being the official owner of the farm or holding formal titles. This insight led ProCredit to integrate gender into its decarbonisation strategy early on.

The ProCredit group, whose focus is on South Eastern and Eastern Europe, leverages its strong SME client relationships to support green investments and will integrate this synergy into its strategy for implementing its net-zero target. The group’s comprehensive approach includes partnering with technical service providers – for example, offering to link solar panel suppliers directly with borrowers as part of its customer service in connection with the financing agreement.

Employee Education: A Critical Component

Both institutions emphasize staff training as crucial for effective climate finance delivery. Since green infrastructure investments may lack immediate profit visibility, frontline staff must understand their long-term benefits: building business resilience, reducing exposure to price shocks, and generating operational cost savings.

To that end, Bank of Africa is establishing a Sustainability Institute for employee training, while ProCredit organizes comprehensive environmental training in each country of operation, led by its own sustainability units at the banks and centrally at its own training facility, the ProCredit Academy in Germany.

Innovative Solutions

Fintech players are exploring novel approaches to scale climate financing. DREX Fintech’s award-winning program in Ecuador provides group solar loans to women farmers, maximizing impact through community-focused lending.

These innovative approaches are typical of what is happening within the Alliance in enabling SMEs transformation. Layering on a gender lens is critical to ensure women are part of the solution. For more examples, check out our InBrief: Building Gender-Intelligent Green Customer Value Proposition.