 Basadi-Women Growth Fund aimed at closing South Africa’s gender financing gap){kind=link}
Business Partners Limited has launched a 90 million rand ($4.8 million) Basadi-Women Growth Fund aimed at closing South Africa’s gender financing gap by expanding access to capital for women-owned small and medium-sized enterprises.
The fund targets women entrepreneurs operating formal SMEs who struggle to secure finance through traditional lending channels, at a time when women-owned businesses are exiting the market at a higher rate than new ventures are being created.
According to the 2024 GEM South Africa Special Report on Women’s Entrepreneurship, 21.5% of women entrepreneurs cite difficulty accessing finance as the main reason for business failure, compared with 17.2% of men. The report also shows that women entrepreneurs are significantly less likely to scale their businesses, with only 4.9% reaching 20 or more employees versus 11.8% of male-led enterprises.
Business Partners Limited said the new fund will provide tailored financing ranging from 250,000 rand to 5 million rand to support women-owned businesses with growth potential.
“South African women experience higher unemployment rates and lower education levels than men, and this inequality is mirrored in entrepreneurship,” said René Botha, regional investment manager at Business Partners Limited. Men own nearly twice as many established businesses as women, with ownership rates of 7.9% compared with 4.1%, she added.
The report identifies lack of profitability as the leading cause of business exits for both genders, but the impact is more severe for women, at 34.4% versus 21.5% for men. Family and personal responsibilities and limited access to finance rank among the most significant gender-specific barriers facing women entrepreneurs.
While men often exit businesses to pursue new opportunities or retire, women rarely do so, highlighting deeper sustainability challenges within female-led enterprises, the report found.
The Basadi-Women Growth Fund offers financing for working capital, equipment, property acquisition, acquisitions, replacement finance and franchise purchases. A key feature of the fund is its flexible repayment structure, which includes options for interest capitalisation or a repayment moratorium of up to six months.
Eligible businesses must be at least 50% women-owned and operated, structured as private companies or close corporations, and generate annual turnover below 20 million rand.
Beyond funding, Business Partners Limited said it will provide technical support, mentorship and access to business networks to help women entrepreneurs overcome structural barriers to growth.
“Women’s entrepreneurial success does not only benefit individuals – it drives job creation, community development and broader economic growth,” Botha said.
Applications for the fund are now open and can be submitted online through Business Partners Limited’s website.