AfDB and AXIAN Launch Programme to Support 34,000 Women Led Businesses: What It Means for African SMEs

A New Push for Women Entrepreneurs

The African Development Bank (AfDB) and AXIAN Group have launched a new digital finance programme aimed at supporting more than 34,000 women led businesses across Africa. Backed by AfDB’s Affirmative Finance Action for Women in Africa (AFAWA) and the Women Entrepreneurs Finance Initiative (We-Fi), the programme will combine digital lending, financial literacy, business development support and digital inclusion.

The programme will provide tailored digital financial products to 34,000 women led MSMEs in Madagascar, Tanzania and Senegal, while 25,000 women across Madagascar, Tanzania, Senegal, Togo and Comoros will receive financial literacy, digital skills and entrepreneurship training. The initiative will use AXIAN’s Mixx and MVola digital finance platforms and alternative credit assessment to reach businesses traditionally underserved by conventional lenders.

The most important feature is that this is not simply a funding programme as it combines finance, technology and business capability. That combination is critical because providing capital to a poorly structured business rarely solves the underlying problem.

The Women’s SME Financing Gap

Africa has the world’s highest rate of female entrepreneurship, yet women entrepreneurs face an estimated $49 billion financing gap. In Nigeria, the challenge is particularly relevant, as women own approximately 40% of MSMEs, while 52% of women led firms identify access to finance as a major growth constraint.

Although Nigeria is not among the five countries directly targeted by this particular AXIAN programme, the initiative is highly relevant to Nigerian SMEs because it demonstrates where SME financing is heading: digital lending, cash flow based credit, financial literacy and tailored financing products.

Nigeria already has a significant policy and financing push in this direction. In May 2026, the AfDB approved a $61 million financing package for the Development Bank of Nigeria, including a $50 million gender-focused credit line, $8 million concessional facility and $3 million grant, specifically to expand affordable finance for women-owned and women-led businesses.

The Importance of a Digital Financial Footprint

The broader lesson for Nigerian SME owners is straightforward: access to capital is increasingly becoming connected to the quality of your business data and digital financial footprint. Entrepreneurs who maintain proper records, transact formally, separate personal and business finances and demonstrate consistent cash flows will increasingly be better positioned to access finance.

For financial institutions and fintechs, the opportunity is equally significant. Cash flow based lending and alternative credit assessment can help reach viable businesses that traditional collateral requirements exclude. World Bank evidence from Nigeria has already shown that such approaches can increase both the number and size of loans available to women entrepreneurs.

The Bigger Picture for African SMEs

The real opportunity is therefore bigger than 34,000 businesses rather, the programme reinforces a broader shift in African SME finance from collateral heavy lending towards data driven digitally enabled and business specific financing.

For SMEs in Nigerian the message is clear which is build a structured, financially visible and digitally active business today because that is increasingly what lenders will use to determine who gets financed tomorrow.

About the Author
Dr. Ozemoya Osikpemhi Amos Onoshoze Pedro is an accounting and finance scholar, researcher, and professional with over a decade of industry experience. Holding a Ph.D. in Accounting and Finance, his expertise spans corporate finance, strategic management, governance, and business innovation. He is passionate about producing research that bridges academic theory with practical business solutions, helping organizations achieve sustainable growth and financial excellence. You can reach him on LinkedIn