The UK Government, through FSD Africa, has committed $335,000 to establish an investment network designed to improve access to finance for women-led businesses in Nigeria. This initiative, known as the RiTA Investment Network, was established by Rising Tide Africa, a pan-African network of women angel investors. The network aims to mobilise $2.7 million from Nigerian investors over three years to support 15 small and growing businesses led by women.
The initiative comes amid persistent financing challenges for small businesses in Nigeria. According to reports, Nigeria's small businesses face an estimated ₦13 trillion financing gap, while women entrepreneurs often struggle to secure loans because they lack collateral, such as land. This financing gap has hindered the growth of many businesses, particularly those led by women.
The RiTA Investment Network aims to connect women entrepreneurs with local investors and reduce barriers to accessing growth finance. The network will mainly provide revenue-based finance, allowing repayments to fluctuate with business sales. This model is designed for profitable businesses that lack conventional collateral and want to retain ownership rather than sell equity.
Paul Healey, Head of Green Growth and Private Sector Development at the British High Commission, said the partnership would strengthen connections between women-led businesses and investors, creating opportunities for business growth and job creation. This partnership is expected to have a positive impact on the Nigerian economy.
Juliet Munro, FSD Africa's Director for Early-Stage Finance, said Nigeria had capital that could support women entrepreneurs but needed better structures to channel domestic investment into their businesses. The RiTA Investment Network has secured about $1.5 million in soft commitments from its network and completed its first transaction in September.
The first transaction was a syndicated corporate note to Ororo Waste Management Limited, while two other businesses are undergoing structuring and due diligence. The initiative is also expected to lay the groundwork for a proposed $10 million growth debt fund denominated in naira, with the longer-term goal of attracting institutional investors and expanding financing options for women-led enterprises.
Women-led businesses seeking growth finance can contact [email protected]. The UK Government's commitment of $335,000 is a significant boost to this initiative, which has the potential to make a positive impact on the lives of many women entrepreneurs in Nigeria.
Key points
- The UK Government has committed $335,000 to support women-led businesses in Nigeria.
- The RiTA Investment Network aims to mobilise $2.7 million from Nigerian investors over three years.
- The initiative has secured $1.5 million in soft commitments and completed its first investment transaction.
