Merchant Finance Limited (MFL) and the Asian Development Bank (ADB) have launched a pioneering $10 million loan product aimed at enhancing access to finance for women-owned micro, small, and medium enterprises (MSMEs). Unveiled on Thursday, MFL intends for 75 percent of the funding to specifically cater to businesses owned by women.
In a recent interview, MFL’s CEO Veilawa Rereiwasaliwa emphasized the financial sector’s reluctance to support female entrepreneurs, attributing this to perceived difficulties. A recent study conducted by MFL highlighted that, initially, most financial services were directed toward male-owned businesses, revealing the challenges faced by women in securing loans.
To address these disparities, MFL created the Marama Finance department, focusing on lending to female-owned businesses. Rereiwasaliwa noted that previously, only 7 percent of the loans disbursed by MFL went to women-owned enterprises, but with the introduction of this new product, the goal is to increase that percentage to 25 percent.
ADB’s regional director for the Pacific Sub-Regional Office, Aaron Batten, expressed satisfaction with the collaboration, noting that the loan product would help alleviate obstacles faced by women entrepreneurs in Fiji. Batten stated that he hopes this initiative will empower women to build wealth for their families and ultimately contribute positively to the Fijian economy.
This new partnership between MFL and ADB is a promising development in bolstering support for women-led businesses and fostering economic growth within the region.
Overall, this initiative presents an optimistic outlook for gender inclusivity in entrepreneurship. By increasing financial accessibility for women-owned businesses, the partnership aims to drive a significant change in the economic landscape for women in Fiji.
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