In this Issue: Green Finance for WMSMEs
This week we kicked off our four-part Primer on the Strategic and Business Case for WMSMEs, showcasing the world’s best use cases. With a record number of registrations (450+) this series equips FSPs with insights to effectively serve women entrepreneurs as a distinct market segment and foster an organizational culture that drives programmatic success. Designed to support WE Finance Code signatories, we are delighted to see such a high level of interest—another mark of the momentum the Code is building, with 28 countries now signed up.
When we segment the WMSME market, the ‘missing middle’ are in the space above where typical microfinance institutions serve and below where typical commercial banks SME lending serve. These ‘very small enterprises’ (VSEs) are often semi-formal, do not meet conventional collateral requirements and do not have projected cash-flows at the ready. This is where many women entrepreneurs are. If the WE Finance Code is to be successful, improving lending to this segment is vital.
Fintech’s are filling some of this gap. Last week’s Fintech Fridays session showcased three innovative small business lenders on their solutions for this segment—Boost Capital, Jumo and Retail Capital. Speakers walked through the many adaptations they have made to sales funnel to ensure women are on-boarded and get access to finance. You can watch the session here for key insights.
Alliance member banks are Best Practice on this in their markets, and this month we are very proud to welcome new member First National Bank whose Head of Women in Business, Nicole Sykes, shares how they are supporting WSMEs in Sub-Saharan Africa.
Earlier this month we were in Germany to train ProCredit Group on designing and implementing a Women’s Markets program. Founded by IPC, a consulting company that pioneered cash-flow based lending for VSEs, ProCredit Group made a strategic choice to support SMEs with green finance a number of years back. This includes an individualized advisory to each small business, achievable through an otherwise low-cost distribution model with banking services provided digitally. ProCredit’s operational approach to green finance, along with Bank of Africa’s, is the topic of this week’s Ask The Expert Series. Key takeaways can be read here.
This month we are also proud to showcase DREX, a climate-tech in Ecuador with an innovative model which links women-owned businesses with women-owned solar farms covering up to 100 percent of their energy requirements. We interview CEO and Founder Joselyne del Rosario, who shares DREX’s strategy for this comprehensive strategy.
Finally, a big shout out to all the 100+ students awarded certificates for successfully completing all the WMSME Gender Data Learning Series coursework. This is a great milestone for you and for us, as once again we have surpassed our previous record.
We look forward to you joining our Alliance and continuing the great work.
In community,