Risk Sharing Facilities: Mobilizing Finance for Women-Led MSMEs

Access to finance for MSMEs remains a core issue in many emerging and developing economies, especially for women. Women-led MSMEs may be perceived as too small or too risky to attract finance. Risk sharing facilities (RSF) can reduce the perceived and real risks of lending to women entrepreneurs, who are underserved by the formal financial sector.

The purpose of this toolkit is to assist AFI member institutions to conceptualize and design RSF to encourage the formal financial institutions to finance women entrepreneurs and women-led MSMEs. It is intended for policymakers, regulators, supervisors and other stakeholders involved in the formulation and implementation of policy and regulation that advance access to finance for women-led MSMEs. It is also useful for financial institutions who aim to expand their MSME portfolios or enter the market of women-led MSMEs.