By The North Journals Staff Writer
Based on an Op-Ed by Carmel Kistasamy, Sector Head: Development Finance, Absa CIB
Busisiwe Mdletshe once viewed herself as a small business owner. Today, she leads a formidable team of financial professionals and heads a thriving enterprise, NetVest. Her journey from modest beginnings to becoming a chief executive in South Africa’s financial sector highlights the profound impact that access to capital and capacity-building support can have on women-led businesses.
Her transformation forms part of a growing movement to close the gender financing gap in Africa, an issue that has taken center stage at this year’s African Development Bank (AfDB) Annual Meetings under the theme “Making Africa’s Capital Work Better for Africa’s Development.”
According to Carmel Kistasamy of Absa Corporate and Investment Banking, closing the gender financing gap is more than a moral imperative — it’s a developmental necessity. “It’s been repeatedly proven — and most recently reiterated by the European Investment Bank — that closing the gender financing gap ultimately benefits everyone: triggering greater, more inclusive economic growth, more stable communities, and better governance,” Kistasamy writes in an op-ed.
The World Economic Forum (WEF) estimates that women-run small and medium enterprises (SMEs) face a global financing shortfall of $1.7 trillion, despite women owning nearly a third of all SMEs. While sub-Saharan Africa has made notable progress in narrowing the economic opportunity gap — closing 68.1% of it — progress remains sluggish, increasing by just 0.4% in the past year.
Recognizing this, Absa and the AfDB have partnered on a transformative initiative aimed at unlocking capital for underrepresented groups, especially women and youth. The partnership features a R1.7 billion sustainability-linked Tier 2 loan and an additional R18 million in non-financial support for technical assistance and capacity building. The goal: to reach at least 6,000 businesses — a target already on track to be surpassed.
A further milestone is the AfDB’s R1 billion subscription to Absa’s inaugural social Tier 2 bond, with proceeds allocated to affordable housing loans for women. Already, 59% of the R2 billion housing loan target has been achieved in 2025, with two-thirds of those loans going to women.
“These are not just financial products — they are pathways to empowerment,” Kistasamy states. “To enable SMEs, the businesses that are crucial to developing Africa’s economic and social prowess, you need an equal focus on human capital.”
Beyond South Africa, Absa’s Kenya operations have joined forces with the African Guarantee Fund and Melanin Kapital to support hundreds of SMEs with sustainability training, mentorship, and networking, alongside financing opportunities. This is part of Absa’s broader commitment to mobilize $10 billion (approx. R180 billion) for women-led enterprises across Africa by 2035.
Other institutions are following suit. Equity Group Holdings recently partnered with the African Guarantee Fund in a $500 million framework to expand SME financing across East and Central Africa. Similarly, Nigeria’s Bank of Industry and AfDB launched a $50 million financing deal to support women-led businesses with capital and advisory support.
Kistasamy concludes: “If projects like these can inspire other private institutions to join the cause, together we can close the financing gap. And if we can help enable more leaders like Busisiwe Mdletshe, everybody wins.”
