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About the Growth Oriented Women Enterprise (GOWE) Kenya Program IFC’s GOWE Kenya Program is supporting women-run businesses in Kenya, helping them grow, compete, and achieve their goals by providing training and better access to loans and other financial products. Launched in November, 2006, the program combines a partial guarantee facility extended by local, commercial banks with an advisory services component that offers comprehensive business training and mentoring. The GOWE Program also supports the growth and development of partner commercial banks, business development service providers (BDSPs), and women entrepreneurship associations. This approach is aimed at giving Kenya’s women entrepreneurs the broadest possible support. The program is financed by the African Development Bank, and managed by IFC. The International Labour Organization is the technical advisory partner. Program Objectives The GOWE Kenya Program supports women entrepreneurs with a combination of investments and advisory services, helping their businesses grow and succeed. The program also works to build a better and more inviting business environment for women entrepreneurs. Specifically, the program works to:
Target Groups Primary beneficiaries are GOWEs, which are formally registered, women-owned enterprises that have proven growth potential. Other program beneficiaries include: local finance institutions, WEAs, and local BDSPs. GOWEs must meet the following requirements to participate in the program:
How the Guarantee Facility Works The main objective of a credit guarantee whether full or partial, is to share risks with the financier. In case a party to a transaction fails to perform as agreed, the third party to the transaction promises to compensate the aggrieved party in full or partially so as to reduce the loss incurred due to non performance of the other party. The GOWE Program works with commercial banks to provide loans to qualifying women-owned businesses. To access the loan and guarantee facility, the business must provide a business plan to a GOWE Program partner bank. The bank then carries out a due diligence/evaluation of the project to determine its viability. Partner banks assess and approve loans following their regular, internal procedures, but within the limits set in the eligibility criteria agreed with AfDB. The bank will process loans for successful businesses, and work with the GOWE Program to help a business access the guarantee facility if it lacks sufficient security for the loan. With the guarantee provided by the Program, women-owned businesses are able to access more financing with the same business assets. Banks may also refer businesses to the GOWE Program for special assistance. When this happens, the GOWE Program staff will identify businesses’ special needs and refer them to relevant BDSPs, where possible. Advisory Services Support The GOWE Program offers comprehensive training to women entrepreneurs aimed at sharpening their business and managerial skills. The program, working with international partners such as the ILO, has developed and sourced an impressive catalogue of training material and curriculum that will maximize a business’s growth potential. The GOWE Program also provides supporting and training for WEAs, BDSPs, and partner banks. GOWE Program training courses include:
Frequently Asked Questions Why are the AfDB, IFC, and ILO supporting women entrepreneurs? Smaller businesses provide the backbone of economic growth for most economies. This is especially true in the developing world, including Africa, where smaller businesses employ the bulk of the working population. Women own about half of all smaller businesses in Kenya, but they tend to grow less than businesses run by men. This is because women often lack the training and support they need to succeed. The GOWE Program is providing women with the tools they need to grow their businesses. Do Businesses Have to Repay the Financing They Receive? Yes. Funding obtained through the GOWE Program is a loan and must be repaid. The GOWE Program provides 50 percent of required security so that women-owned businesses can access larger loans, which are provided by partner banks. Does the GOWE Program work with start-up businesses? No. The GOWE Program only works with businesses with at least two year’s operations. Does the GOWE Program finance women’s associations? No. The GOWE Program provides partial guarantees to partner banks on loans made to legally registered enterprises that are majority owned by woman/women, and managed by woman/women at the executive level. The program offers training to women entrepreneurship associations to help them better work with their members. Why does the GOWE Program provide advisory services (training)? IFC and AfDB combine investments with advisory services in many projects across Africa to maximize developmental impact. By providing training, guidance, and support, combined with a loan or equity investment, businesses stand a better chance of succeeding. In Africa, many women entrepreneurs lack the formal training to launch or grow a business, which is why the GOWE Program is providing this support. | SITE TOOLS   KEY PUBLICATIONS
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