FSDAi Nyala Facility BV has extended a USD 1 million loan to WIC Capital to invest in women-owned and managed Small and Growing Businesses (SGBs) in Senegal and Côte D’Ivoire.
Led by Ms. Evelyne Dioh Simpa, an experienced Fund Manager, WIC Capital works provides first-time external capital as well as business training and mentorship to early-stage, women-owned/ led enterprises.
According to Evelyne Dioh, Managing Director of WIC Capital, “This partnership will be catalytic in the development of a local capital provider that has the potential to profoundly change the local ecosystem, by providing risk capital and business support to women led small and growing businesses (SGBs), with the ultimate goal of increasing women’s agency and economic benefit.
WIC Capital’s mission aligns with FSDAi’s desire to address the disfunctions of African capital markets, which include the structural barriers that small businesses face in accessing financing, specifically when they are women led. With this investment, WIC Capital is closing its first fund, and believe this partnership will help it accelerate the mobilization of its second fund to serve SMEs generating a strong impact in Senegal and Côte d’Ivoire.
Just 3.5% of women entrepreneurs access credit from financial institutions in Senegal, WIC Capital focuses exclusively on investing in businesses owned and/ or led by women, demonstrating that the financing gap for female-owned enterprises in West Africa can be addressed. Furthermore, WIC Capital stands out for its innovative product structures tailored to local SGBs. Notably, its origins in an exclusive women’s angel network, adds to its uniqueness within the FSDAi Nyala Facility portfolio, making it an invaluable learning opportunity for all investors in the small and growing businesses investing ecosystem.
“I am proud that the UK is investing US$1 million in WIC Capital through Financial Sector Deepening Africa Investments. I have seen first-hand WIC Capital’s inspiring work and know that they are a deeply impact-focused organisation. They support young female entrepreneurs in a market where access to funding is a huge barrier for their growth. At the heart of building sustainable and inclusive businesses lies the need to advance gender equality through women’s economic empowerment. I look forward to continuing our collaboration to create jobs and empower Senegal’s talented women,” noted Juliette John, UK Ambassador to Senegal.
Women entrepreneurs in Africa not only encounter challenges when it comes to access to finance but also grapple with the scarcity of platforms offering the essential knowledge and assistance required for the expansion of their businesses.
“Through its investment in WIC, FSDAi is backing an African women-led capital allocator with deep local angel networks, a creative funding structure and financing solution for small and growing businesses in West Africa. With our investment, WIC can position itself to attract bigger pools of capital to expand its strategy in Senegal and Cote d’Ivoire., said Anne-Marie Chidzero, Chief Investment Officer at FSD Africa Investments.