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Standard Bank, Africa’s largest lender by assets, is committing $1 billion over the next decade to support women entrepreneurs across the continent. Led by South African banker Sim Tshabalala, the bank will channel the investment through the African Women Impact Fund (AWIF), backing women fund managers who, in turn, finance women-led businesses.
Closing the gap in women’s funding
The decision responds to an imbalance highlighted in the 2023 Africa: The Big Deal report, which showed that startups founded solely by women secured just 2.4 percent of venture capital funding. The gap is not from lack of potential, says Thobile Finca, AWIF’s programme manager at Standard Bank. “Women fund managers are twice as likely to invest in female-led businesses,” she noted. “Yet, due to stereotypes and bias, these businesses are often overlooked.”
AWIF was launched by the United Nations Economic Commission for Africa, UN Women, and the African Union Commission, with Standard Bank as its lead sponsor. To date, the fund has raised $24 million, helping 10 women fund managers access working capital and professional support. Investment firm RisCura Invest provides incubation services, while MiDA Advisors serves as strategic advisor.
Standard Bank targets $150 million round
Capital is being directed to sectors such as agriculture, healthcare, fintech, and education, areas where women entrepreneurs are active and where growth opportunities remain strong. Investors are being offered a targeted 15 percent internal rate of return, with carefully selected women-led managers responsible for deployment.
Standard Bank aims to close a $150 million fundraising round by the final quarter of 2025. South African pension funds have already pledged commitments, with the condition that money is invested locally. Discussions are also underway with other African pension funds and development finance institutions to broaden the base of long-term backers. “The challenge for women SMEs is access to capital,” Finca said. “Many operate in the informal sector without networks or the financial backing needed to grow. The AWIF Foundation helps them become bankable.”
Standard Bank charts future beyond 2027
For Standard Bank, the initiative reflects a broader strategy under Tshabalala, who is due to retire in 2027 after 14 years as chief executive. Over his tenure, the bank has expanded into 20 African markets, including Kenya, Uganda, Tanzania, and Ethiopia. Today it is valued at R402 billion ($22 billion) on the Johannesburg Stock Exchange, having reported R24 billion ($1.36 billion) in headline earnings and a 19.1 percent return on equity in the first half of 2025.
Earlier this year, the bank lifted its sustainable finance commitment to R450 billion ($25.5 billion) by 2028, an 80 percent increase aimed at accelerating Africa’s energy transition. Since 2022, it has already mobilized R230 billion ($13 billion), with R53 billion ($3 billion) raised in the first half of 2025 alone. By backing AWIF, Standard Bank is extending this push into inclusive development—seeking not only to fund Africa’s growth but also to give women a bigger stake in shaping it.
