LONDON, March 2 (Reuters) - Global investment platform Fasanara Capital and the International Finance Corporation are launching an initiative to lend to women-owned small businesses in the developing
IFC and Fasanara Capital Launch $100M in Loans for Women-Owned Small Businesses
Initiative to Support Women-Owned Small Businesses in Developing Countries
LONDON, March 2 (Reuters) - Global investment platform Fasanara Capital and the International Finance Corporation are launching an initiative to lend to women-owned small businesses in the developing world with some $100 million in firepower.
The launch comes as developing world borrowers seek new sources of cash amid a broad Western aid pullback - and as private lenders seek the higher margins emerging markets offer.
Key Features of the Lending Project
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Loan Distribution and Target Recipients
The project will offer loans that would average $50,000 dollars to thousands to women-owned businesses identified using fintech platforms, Fasanara Chief Executive Francesco Filia told Reuters.
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Potential for Additional Investment
Filia said the effort is likely to garner additional private investment, including potential institutional capital. He declined to comment on its size, but a source said it was likely to launch with roughly $100 million.
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Addressing Funding Gaps for Small Businesses
"There has been more of a need, more of a pressure to build up alternative resources of access to capital," Filia said, adding that small businesses "are in desperate need of funding because banks...focus on mainstream clients, large corporate clients."
Global Context and Impact
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The Financing Gap for Women-Owned Firms
In a news release, Fasanara and the IFC said that globally, small businesses face a $5.7 trillion financing gap, with women-owned firms hit the hardest.
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Supporting Job Creation in Emerging Markets
IFC's Perspective
Mohamed Gouled, IFC vice president for products and clients, said expanding access to financing for small businesses was "one of the most effective ways to support job creation in emerging markets."
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Role of Fintech Platforms
Fasanara relies on more than 100 different fintech platforms in dozens of countries to identify and filter potential borrowers
Reporting and Editorial
Article Contributors
(Reporting by Libby George; Editing by Amanda Cooper)
