The International Finance Corporation is urging financial institutions across Africa, particularly Nigeria, to adopt data-driven lending and alternative credit assessment methods to expand financing access for women-owned businesses. Marieme Niang, the IFC Africa Regional Lead for Gender Solutions and Impact, said banks should move beyond traditional collateral requirements and instead use reliable business records, cash flow data and digital transaction histories to evaluate creditworthiness. The IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets and developing economies, providing investment, advisory services and capital mobilisation.
Niang explained that many small businesses rely heavily on cash transactions, which makes it difficult for lenders to assess their financial performance. She advocated treating data as new collateral for trusted information and stressed that cash flow analysis should give banks confidence to lend without traditional guarantees. She also called for banks to develop financing products tailored specifically to women entrepreneurs rather than treating all small and medium enterprises the same way. Greater digitalisation of business transactions would establish reliable financial records needed for this approach, she added.
The IFC official highlighted that women entrepreneurs frequently report inadequate financing, while lenders argue that many businesses lack investment readiness. The IFC is addressing both challenges through business coaching, mentorship, technical assistance and investor connections. The first phase of the She Wins Africa initiative supported 100 women entrepreneurs across 23 countries and mobilised more than $4m, with beneficiaries operating in healthcare, agribusiness, tourism, technology and creative industries. The second phase, She Wins Africa Academy, aims to support 1,000 women-led businesses with greater emphasis on peer learning and business development.
Niang also advocated adoption of the WeFinance Code, which encourages financial institutions to report gender-disaggregated data, develop women-focused financial products and increase female representation in leadership. She noted that central bank involvement could strengthen implementation of this framework. The IFC is designing its Sourcing2Equal programme for Nigeria to connect women-owned businesses with major corporate buyers. The initiative has already been implemented in Kenya, where it supported 345 enterprises from a pool of 1,122 women entrepreneurs. Similar programmes are being rolled out in Senegal and Mozambique.
Regarding Nigeria's business environment, Niang praised the country's creative industries but identified fragmentation and inadequate collaboration as obstacles to expansion. She urged entrepreneurs to strengthen corporate governance, develop sustainable business strategies and embrace partnerships. Niang advised entrepreneurs to seek financing appropriate to their business development stages, starting with fintech and microfinance options before approaching commercial banks and investment funds as their enterprises mature.