African financial institutions launch new initiatives for SME and women entrepreneur funding

African financial institutions and central banks are implementing various strategies to bolster economic stability and financial inclusion across the continent.

The Central Bank of West African States (BCEAO) has maintained its key interest rates, with the main refinancing rate at 3.00% and the marginal lending rate at 5.00%. This decision comes amid rising inflation in the West African Economic and Monetary Union (UEMOA), which reached 1.7% in August 2026, driven by increased transport and housing costs.

In a push for long-term investment, the African Development Bank (AfDB) has entered a reinforced partnership with African depositary funds. This collaboration, highlighted at the Forum of Depositary Funds in Benin, aims to channel domestic savings into productive sectors, specifically targeting SMEs and startups through pilot facilities involving Benin, Senegal, and Côte d'Ivoire.

Additionally, the AfDB and Axian Group are launching a digital finance program to address the $49 billion funding gap for women entrepreneurs in Africa. The initiative will provide tailored digital financial services and training to tens of thousands of women in Madagascar, Tanzania, Senegal, Togo, and the Comoros. Meanwhile, the Export Development Fund for Africa (FEDA) continues to expand, with Senegal and Liberia joining as members and Angola and Zimbabwe ratifying its founding agreement.