Bridging the Gender Finance Gap in Africa: The Story of HerVest
After years of working in marketing for various financial services companies, Solape Akinpelu made a startling observation: there was an “alarmingly low adoption” of financial services among women in Nigeria and across Africa. This realization was not just a statistic for Akinpelu; it was a reflection of the lives of the women around her. “I could see women living the reality around me,” she recalls. Many of these women struggled to make sound financial decisions, often unaware of the better financial opportunities available to them.
The Challenge for Rural Women
The issue is particularly pronounced for women living in rural areas, especially those engaged in agriculture. These women often lack access to essential financial services, which limits their ability to invest in their futures and improve their livelihoods. Akinpelu recognized that without proper financial education and resources, these women would continue to face significant barriers.
The Birth of HerVest
In August 2020, Akinpelu teamed up with Yomi Ogunleye to establish HerVest, a Lagos-based startup designed to serve underserved women in Africa through a gender-focused lens. HerVest aims to bridge the staggering $42 billion gender finance gap, particularly for urban and rural women involved in agriculture. The startup’s mission is clear: to empower women by providing them with access to savings, fund transfers, impact investments, and financial tools that can help them make informed decisions.
A Unique Approach to Financial Inclusion
HerVest offers a unique model that combines financial literacy with investment opportunities. The platform allows women to invest in female farmers while also seeing a return on their investments. This dual approach not only provides financial resources but also equips women with the knowledge and skills they need to manage their finances effectively. “We want to address the gender gap in Africa by giving access to savings, impact investment, and credit to women, regardless of who they are and where they live,” Akinpelu emphasizes.
Rapid Growth and Community Impact
Just over a year after its launch, HerVest has attracted over 4,000 women to its platform. Earlier this year, the startup successfully raised $100,000 in a friends and family funding round, which it plans to use to expand its nine-person team, enhance its digital infrastructure, and ramp up marketing efforts. Operating primarily as a distributed company, HerVest has leveraged technology to reach women across Nigeria and beyond.
The Importance of Financial Inclusion
Akinpelu’s previous experience as head of marketing for a capital market conglomerate, along with her work in various financial brands, provided her with valuable insights into the urgent need for financial services tailored for women. The COVID-19 pandemic has further highlighted the vulnerabilities faced by low-income women, making financial inclusion even more critical for their recovery and long-term resilience.
Expanding Horizons
While HerVest is currently focused on Nigeria, Akinpelu has ambitious plans to expand into other West and East African countries. “The problem we’re solving is an African finance gender gap, not just Nigerian,” she asserts. To spread the word about HerVest, the company has utilized referrals, partnerships with cooperatives, and social media outreach. The platform is accessible via a live app on both iOS and Android, and a desktop application has recently been launched.
Cooperative Model for Impact Investment
HerVest’s cooperative model allows women with disposable income to pool their funds together as credit for smallholder female farmers. This impact investment approach not only strengthens the financial capacity of these farmers but also offers cooperative members the potential to earn annualized returns of up to 25%. Additionally, women can create automatic savings plans to help them achieve their personal financial goals. Akinpelu describes HerVest as “an inclusive neobank for women,” emphasizing the importance of accountability and transparency in fund management.
Empowering Women Farmers
By investing in women, HerVest aims to provide growth opportunities for specific crops, grain banking, livestock, and digitized e-extension services tailored for female small-scale farmers in rural areas. This holistic approach not only addresses immediate financial needs but also fosters long-term economic empowerment for women across Africa.
Through HerVest, Akinpelu and her team are not just creating a financial platform; they are building a movement aimed at transforming the financial landscape for women in Africa, one investment at a time.