Exploring Microfinance Opportunities for Women-Led Social Enterprises in the Middle East & Africa
“The purpose of human life is to serve and to show compassion and the will to help others.” Albert Schweitzer
Natacha Fazal Karim, the founder of the HerMeNow Accelerator, is dedicated to making a profound impact on the lives of the program's participants. Over its last two years of operation, the accelerator has supported over 60 semi-finalists through intensive training phases and has provided funding, training and access to resources to 18 finalists, helping them advance their social impact and business goals.
HerMeNow aims to address the shortcomings of many accelerator programs by offering both financial and non-financial support well beyond the program’s duration.
Early-stage social enterprises in the Middle East & Africa, particularly those led by women, often face significant challenges in securing funding. The total funding gap for social enterprises in the Middle East and Africa is approximately $270 billion. Banks typically require collateral for loans, which many SMEs cannot provide and loan sharks impose exorbitant interest rates. As a result, due to limited financing options and a lack of financial literacy, 91% of these enterprises fail within 4 to 6 years.
In its steadfast commitment to supporting women-led social entrepreneurs, HerMeNow continues to lead the way. To further this mission, HerMeNow has partnered with Rama Impact, a venture philanthropy organization that provides both enabling finance and non-financial assistance to early stage women-owned social enterprises in the region. This collaboration is designed to ensure the continuity of HerMeNow’s impact by offering female social entrepreneurs secure microfinance opportunities to sustain, grow and expand their businesses.
Challenges Women-Led Social Enterprises Face in Securing Funding
Early-stage social enterprises, particularly those led by women, encounter a tough financial landscape in the Middle East & Africa region. Despite having explored traditional funding sources like grants and personal savings, these enterprises often struggle to find ways to sustain and grow their businesses.
The lack of tailored financing options and a well-developed support system for impact-driven businesses hinders their ability to connect with both local and international markets. Furthermore, many of these social entrepreneurs are still in their formative stages and have yet to capture the interest of commercial financiers and investors.
To address these challenges and enhance funding and stability, the Middle East & Africa social enterprise ecosystem requires a collaborative effort from public and private sectors, as well as international organizations.
Our Impact and Its Expanding Reach
Rama Impact offers collateral-free, 0% interest loans to women-owned social enterprises operating in underserved communities in Middle East and Africa. These loans range from $5,000 to $40,000 and are awarded following a thorough vetting process. The repayment plans are customized to fit each business's model, ensuring manageable repayments.
In addition to financial support, Rama Impact provides a suite of non-financial assistance, including technical assistance to enhance both impact and revenue models, wellness programs and a dedicated mentor is assigned to each founder for the duration of the repayment period. Women founders also gain access to a supportive online community of like-minded women.
These loans aim to drive business growth by funding the purchase of equipment & supplies, the expansion of the sales team (including training & development) and the enhancement of digital marketing, all with the goal of significantly increasing the social enterprises' revenue and impact.
The Benefits
This opportunity allows women social entrepreneurs to avoid lengthy regulatory processes, high interest rates and repeated rejections due to lack of collateral. It also provides tailored repayment terms that ease cash flow constraints and minimize repayment pressure on the funds they have raised.
By leveraging enabling finance and receiving technical assistance from experts to bolster their capacity-building and internal efficiency, women-led social enterprises operating in Middle East and Africa can overcome challenges related to scaling operations and accessing growth opportunities. The goal is to assist conscious women social entrepreneurs in expanding their enterprises and making a meaningful impact in their communities, which is the central mission of both HerMeNow and Rama Impact.
Eligibility Criteria to apply to RAMA Impact
All HerMeNow alumni and other women-owned social enterprises that are innovatively tackling challenges related to sustainable development and economic empowerment in underserved communities in the Middle East and Africa, especially in Egypt, Kenya, and Lebanon, are welcome to apply. The key focus areas include agribusiness (food security), waste management, and ethical and sustainable fashion.
To qualify, the organization must also be a women-led social enterprise (with majority female ownership), registered as a for-profit entity, have at least two or three team members and generate a minimum annual revenue of USD 25,000. Additionally, the enterprise must demonstrate sustainable and scalable business and impact models.
These loans are intended to enhance business growth by funding equipment & supplies, hiring & training sales employees and/or investing in digital marketing.
HerMeNow aims to make a meaningful difference in the lives of women social entrepreneurs committed to sustainability. Through this partnership, HerMeNow is now able to offer like-minded women in regions with limited support for female social entrepreneurs the opportunity to grow resilient, successful and responsible businesses. This initiative provides a valuable chance for these enterprises to expand and enhance their positive impact on their communities.
For more information about Rama Impact and its offerings, visit www.ramaimpact.com.
If you are a HerMeNow participant or alumni, book your free coaching session now through the HerMeNow website https://www.hermenow.com/wellness.
Anam Anjum
Wellness Consultant
+971 52 629 9656