Description

Benin and Burkina Faso – Window 1: Investments in SMEs and Financial Institutions

Overview

This funding window is part of the C$16 million Investing in Women’s Entrepreneurship for a Greener Economy programme, funded by Global Affairs Canada (GAC). It provides a total of C$7.5 million under Window 1, combining repayable and non-repayable grants.

The programme targets women-owned and women-led SMEs in climate-smart agriculture, with a dual focus on strengthening agribusiness development and improving access to finance through de-risked financial intermediaries. Overall, it aims to reduce structural gender inequalities in high-impact economic sectors while supporting greener, more inclusive value chains.

Programme Objectives

The initiative seeks to strengthen the role of women as economic actors by increasing both private and public investment in women-owned SMEs and enterprises that generate economic opportunities for women. It also promotes structural change by addressing gender barriers in environmentally sensitive markets and supporting more inclusive private sector participation.

Fund Objectives

The fund is designed to improve access to finance for SMEs and financial institutions that actively support women’s economic participation, including through job creation, value chain strengthening, and tailored financial services. It also provides technical assistance to enhance the capacity of women-owned enterprises and promote gender mainstreaming practices.

In addition, the programme aims to raise awareness of the economic and environmental benefits of investing in women and to promote the adoption of climate-smart agricultural practices across targeted value chains.

Areas of Intervention

Eligible applicants include women-owned and women-led SMEs operating in Benin or Burkina Faso, as well as financial institutions and intermediaries such as microfinance institutions and savings groups. SMEs must demonstrate majority women ownership (at least 51%) or strong female leadership and participation across management, employees, and value chains.

Financial institutions are expected to design or expand financial products that address barriers women face in accessing finance. While the programme is not limited to specific sectors, priority value chains include shea, rice, groundnuts, soya, and poultry.

Eligibility Criteria (Key Requirements)

Applicants must:

• Be legally registered and operating in Benin and/or Burkina Faso
• Have at least 2 years of business operations
• Demonstrate gender equality and women’s empowerment commitment
• Integrate climate change mitigation or adaptation into business models
• Comply with national laws, tax, labour, environmental and human rights standards
• Be free from corruption, sanctions, or prohibited activities (incl. terrorism, money laundering)
• Be open to due diligence, monitoring, and verification processes
• Provide evidence of matching contribution requirements

Eligible Business Models

The call supports a wide range of business models that strengthen women’s participation in value chains and promote environmentally sustainable solutions. This includes market aggregation platforms, digital and information services that improve market access, and processing or manufacturing activities that generate employment opportunities for women.

It also supports climate-smart technologies such as mechanisation, storage, refrigeration, and distribution systems, as well as business models that strengthen end-to-end value chains and improve women’s access to services, inputs, and markets.

For financial institutions, eligible models include innovative financial products tailored to women entrepreneurs, value-chain financing mechanisms, and risk-sharing instruments designed to expand access to credit.

Funding Available

Funding is provided as a mix of grants and repayable grants (soft loans).

SMEs

• CAD 50,000 – CAD 750,000
• Can be grant, loan, or combination

Financial Institutions / Intermediaries

• CAD 100,000 – CAD 1,000,000
• Includes concessional loans and/or grants

Funding is tailored based on:

• Business maturity
• Risk profile
• Project viability and scalability

Matching Contribution Requirements

Applicants must co-finance their projects:

• SMEs: minimum 1:0.5 (grant to equity ratio)
  • Reduced requirement (1:0.25) possible for high-impact, small-scale innovative women-led businesses
• Financial Institutions: minimum 1:1 matching contribution

In-kind contributions may be accepted (up to 75% for SMEs in specific cases).

Expected Socio-Economic Impact

Projects must demonstrate clear and measurable benefits for women and local communities. This includes increased incomes, job creation (with a strong emphasis on women’s employment), improved access to climate-smart technologies, and stronger participation of women in value chains.

Impact will also be measured through indicators such as the volume of trade involving women-owned SMEs, the number of beneficiaries reached through services and awareness programmes, and improvements in productivity, resilience, and livelihoods in rural and peri-urban areas. Environmental sustainability and climate adaptation outcomes are also key expectations.

Investment Principles

All funding decisions are guided by AECF’s investment principles, which prioritise private-sector-led solutions, high-impact models, systemic market change, and risk-sharing approaches. The programme also emphasises transparency, portfolio diversification, environmental responsibility, and long-term business sustainability, while ensuring that all investments follow a strict “Do No Harm” approach.

Environmental and Compliance Requirements

All funded projects must integrate climate-smart approaches and comply with environmental regulations, including the need for environmental impact assessments where applicable. Continuous monitoring is required to ensure compliance with legal, social, and environmental standards throughout the project lifecycle.