The United Kingdom has announced a significant investment of $335,000 to establish the RiTA Investment Network, a new initiative designed to channel more domestic capital into women-led businesses in Nigeria. This effort, supported by the British High Commission in Nigeria and spearheaded by Rising Tide Africa, aims to mobilize a total of $2.7 million from local investors to support 15 small and growing enterprises owned by women across the country.
This initiative is particularly crucial given the persistent financing challenges faced by Nigerian small businesses, especially those owned by women. According to the International Finance Corporation, there exists a staggering N13 trillion financing gap for small businesses in Nigeria, with women entrepreneurs being disproportionately affected. They are often rejected for credit at rates more than three times higher than their male counterparts, primarily due to the lack of collateral traditionally required by banks. The RiTA Investment Network seeks to bridge this gap by providing structured support and access to capital for these businesses, which are vital for economic growth.
Looking ahead, the RiTA Investment Network aims to raise $10 million in local-currency funding, which is essential for mitigating the currency risks associated with dollar-denominated financing. As the naira continues to experience volatility, businesses that generate revenue in local currency face increased challenges in servicing foreign debt. This initiative not only supports women entrepreneurs but also aligns with the UK’s broader strategy to deepen Nigeria's capital markets, potentially unlocking further investment opportunities in the region.