KEY POINTS

• FSD Africa has committed $335,000, funded by the UK Government, to establish the RiTA Investment Network.
• The network aims to raise $2.7 million, about ₦3.75 billion, from Nigerian investors to finance 15 women-led businesses.
• Nigeria’s small businesses face an estimated ₦13 trillion financing gap, while women entrepreneurs face higher credit rejection rates.
• RiTA aims to mobilise domestic capital and provide a structured way to finance women-led businesses in naira.

MAIN STORY

FSD Africa has committed $335,000 to establish an investment network aimed at improving access to growth capital for women-led businesses in Nigeria, with funding from the UK Government through the British High Commission in Nigeria.

The initiative, known as the RiTA Investment Network, was established by Rising Tide Africa, a women-led pan-African network of angel investors. It aims to mobilise $2.7 million, equivalent to about ₦3.75 billion, from Nigerian investors, including high-net-worth individuals, angel investors and family offices.

The funds are expected to support 15 small and growing women-led businesses across the country, helping them obtain capital to expand their operations.

The initiative targets a major financing challenge facing Nigerian businesses. The International Finance Corporation estimates that small businesses in Nigeria face a financing gap of about ₦13 trillion, with 19 in 20 unable to access formal finance.

Women entrepreneurs face additional barriers. They own about 40 per cent of Nigeria’s small businesses but are rejected for credit at more than three times the rate of men, according to the information provided on the initiative.

For many women business owners, the difficulty is not necessarily the ability to run a viable business or repay a loan, but the lack of assets such as land that banks traditionally require as collateral.

Paul Healey, Head of Green Growth and Private Sector Development at the British High Commission, said the initiative forms part of the UK Government’s broader support for improving access to finance for promising small and growing businesses.

Juliet Munro, Director for Early-Stage Finance at FSD Africa, said the network could help mobilise domestic investment and direct it towards businesses with growth potential and the capacity to create jobs.

Yemi Keri, general partner and spokesperson for the RiTA Investment Network, said FSD Africa’s support would help the network build the structure, discipline and data needed to expand its financing activities.

The network also has a broader ambition to raise $10 million in local currency to support women-owned enterprises in Nigeria.

THE ISSUES

The financing challenge facing women entrepreneurs goes beyond whether they have a promising business idea. A business may have customers and room to expand but still struggle to secure funding if its owner cannot provide the property or other assets required by lenders.

This can limit businesses’ ability to increase production, hire workers and enter new markets. It also means that entrepreneurs without substantial assets may find it harder to obtain formal financing, even when their businesses have growth potential.

The RiTA Investment Network seeks to address this gap by connecting women-led businesses with investors and creating a structured way to deploy domestic capital. Raising funds in naira could also allow the network to finance local businesses without relying entirely on foreign-currency investment.

However, the $335,000 commitment is intended to establish the network, while the $2.7 million is its fundraising target. The two figures represent different stages of the initiative and should not be treated as money already disbursed to businesses.

The network’s impact will depend on how much investment it ultimately mobilises, which businesses receive funding and whether the capital helps them expand and create jobs. The source material does not specify the financing terms, selection criteria or expected job numbers for the 15 businesses.

WHAT’S BEING SAID

“Women entrepreneurs are building successful businesses across Nigeria, but many still face barriers to accessing the investment they need to grow. This partnership between the UK Government, FSD Africa and Rising Tide Africa is changing that.” – Paul Healey, Head of Green Growth and Private Sector Development at the British High Commission.

“Nigeria does not lack capital. Women angel investors in Rising Tide Africa have shown for years that they will back women-led businesses with their own money. The RiTA Investment Network gives that capital the structure and instrument to grow, in Naira, and at scale.” – Juliet Munro, Director for Early-Stage Finance at FSD Africa.

“Women-led businesses in Nigeria are growing, and they need lenders who understand how they work. We founded RiTA to give investors a disciplined way to lend to them, one business at a time. FSD Africa’s support lets us build the structure, the discipline and the data to do this at scale,” – Yemi Keri, general partner and spokesperson for the RiTA Investment Network.

WHAT’S NEXT

The network aims to raise $2.7 million from Nigerian investors and channel the funding to 15 women-led businesses. Its longer-term ambition is to mobilise $10 million in local currency.

The next steps will involve attracting investors, identifying businesses for financing and establishing the systems needed to manage and monitor the investments. The amount raised and the results achieved by recipient businesses will determine how far the network can meet its objectives.

BOTTOM LINE

FSD Africa’s commitment is intended to help women-led businesses overcome barriers to growth capital by building a structured connection between Nigerian investors and entrepreneurs. The key test will be whether the network can turn its fundraising ambitions into financing that helps businesses expand and create jobs.