Afrishela (meaning “her money” in Swahili) is a US$30 million, innovative Pan-African investment vehicle designed, led, and managed by African women for African women. Incubated and promoted by the Graça Machel Trust, Afrishela is a flagship initiative that facilitates the flow of capital to women-led enterprises with gender- and climate-aligned solutions. The fund has headquarters in Kenya and South Africa, with an operational presence spanning East and Southern Africa.
Afrishela was established to address Africa’s substantial gender financing gap, estimated at US$42 billion for women-owned small and medium enterprises in sub-Saharan Africa, according to the 2017 IFC MSME Finance Report. The fund specifically targets the “missing middle” segment: early-growth-stage businesses often classified as too big for microfinance, too risky for banks, and too small for traditional private equity. Afrishela’s investment thesis is strategically positioned at the intersection of gender, climate, and early-stage financing a space where few other investors operate. The fund’s theory of change centres on deploying innovative, bespoke mezzanine investment capital combined with tailored gender and climate-forward technical assistance and advocacy to create positive impact for women through job creation, increased leadership, and greater income equality, ultimately improving economic and social well-being in African communities with disproportionate impact on women and girls.
The fund employs a unique blended finance approach, combining up to 80 per cent mezzanine financing structures (including revenue-based instruments and impact-linked loans) with 20 per cent equity investments. This flexible capital structure is complemented by substantial technical assistance representing up to 15 per cent of investment capital in each business, addressing both financial and non-financial needs of women entrepreneurs, including peer support through community learnings, buddy business coaching from sector specialists, and gendered secondments (accommodating unpaid care, maternity leave, and sexual reproductive health considerations).
The fund applies an alternative credit risk assessment process specifically designed to expand access to finance, address structural inequalities, and mitigate unconscious bias that often disadvantages women entrepreneurs. This innovative approach addresses common challenges faced by women-owned businesses, including lengthy turnaround times, high interest rates, collateral requirements, and short grace periods that characterise traditional financing options.
The fund targets women-owned and led businesses demonstrating robust and scalable business models with gendered solutions, processes, and policies. Investment criteria emphasise increased participation of women within the workforce, supply chains, and value chains; contribution to carbon footprint reduction and environmental protection; and job creation or income increases for youth, marginalised communities, low-income groups, and rural populations. Impact focus extends to increased access to products and services for underserved female consumers, particularly in sexual and reproductive health, women’s health, education and training, financial services, clean water, energy, security, mobility, and wellness.
Investment Amount
Afrishela provides blended finance, including equity financing, with deal sizes ranging from $20,000 to $500,000, averaging around $300,000. Up to 80% of the portfolio is allocated to mezzanine financing structures, while 20% is allocated to equity investments.
Target
Early growth-stage women-owned and led businesses with robust and scalable models.
Focus Areas
Businesses operating in sectors such as clean energy, agriculture, manufacturing, education, health, and financial services.
