IFC-backed $100m initiative to boost women-owned businesses in developing world

LONDON, March 2 (Reuters) – Global investment platform Fasanara Capital and the International Finance Corporation are launching an initiative to lend to women-owned small businesses in the developing world with some $100 million in firepower. 

The launch comes as developing world borrowers seek new sources of cash amid a broad Western aid pullback – and as private lenders seek the higher margins emerging markets offer. 

* The project will offer loans that would average $50,000dollars to thousands to women-owned businesses identified usingfintech platforms, Fasanara Chief Executive Francesco Filia toldReuters. * Filia said the effort is likely to garner additionalprivate investment, including potential institutional capital.He declined to comment on its size, but a source said it waslikely to launch with roughly $100 million. * “There has been more of a need, more of a pressure tobuild up alternative resources of access to capital,” Filiasaid, adding that small businesses “are in desperate need offunding because banks…focus on mainstream clients, largecorporate clients.” * In a news release, Fasanara and the IFC said thatglobally, small businesses face a $5.7 trillion financing gap,with women-owned firms hit the hardest. * Mohamed Gouled, IFC vice president for products andclients, said expanding access to financing for small businesseswas “one of the most effective ways to support job creation inemerging markets.” * Fasanara relies on more than 100 different fintechplatforms in dozens of countries to identify and filterpotential borrowers

(Reporting by Libby George; Editing by Amanda Cooper)