The economic landscape of Africa, with its dynamic markets and innovative ecosystems, stands as a testament to the continent’s evolving narrative. Central to this transformation is the undeniable role of women, who operate more than 40% of small and large medium enterprises across the continent. Without their participation, Africa’s economic vitality would be markedly diminished. However, despite their critical involvement, female entrepreneurs face significant challenges, including a financing gap exceeding $40 billion. This stark reality underscores a broader issue: the need for enhanced female participation in Africa’s burgeoning tech sector to bridge this gap and leverage the global emerging market potential.
Sub-Saharan Africa is distinguished by having the highest rate of female entrepreneurship globally, with around 26% of female adults engaged in entrepreneurial ventures. This statistic is not just a marker of participation but a clear indicator of the significant impact women have on the continent’s economy.
The Roland Berger Women in Africa Entrepreneurship Study (2018) revealed that female entrepreneurs contributed between US$250 billion and US$300 billion to African economic growth in 2016, which equated to about 13% of the continent’s GDP (Berger 2018).
This contribution is substantial, reflecting the potential of women entrepreneurs to drive economic expansion and innovation.
A McKinsey report highlights the global significance of the female economy, predicting it could add up to US$12 trillion to the global GDP by 2025. This potential underscores the urgency of integrating more women into the tech-driven sectors of the economy. The rapid advancement of technology presents a transformative opportunity for female entrepreneurs to address and potentially close the financing gap while contributing to economic growth on a global scale.
Through my extensive collaboration with startups across multiple countries, regions, and continents, it has become evident to me that businesses led by women often exhibit stronger fundamentals than those led by their male counterparts. This observation is attributed to the resilience and determination of female entrepreneurs, who navigate through a myriad of challenges to achieve success. Their ability to create sustainable, growth-oriented businesses in the face of adversity is not only commendable but essential for the economic future of Africa.
However, the path to harnessing this potential is fraught with challenges, particularly in the tech ecosystem. The current pace of technological advancement necessitates a strategic focus on cultivating female tech entrepreneurs in Africa. It is imperative to recognise this as an urgent priority to capitalise on the opportunities presented by the global market.
The integration of technology in empowering women entrepreneurs is crucial. Digital tools and platforms offer unprecedented opportunities for women to access new markets, secure financing, and scale their operations. Initiatives aimed at improving digital literacy among women, providing easier access to capital, and fostering supportive networks are vital steps towards achieving this goal.
The call to action is clear: we must invest in, support, and advocate for female entrepreneurs in Africa. Our collective efforts can not only help bridge the financing gap but also create a more inclusive, equitable, and prosperous economic landscape.
The narrative of Africa’s economic growth is directly linked to the empowerment of women entrepreneurs. Their role is not merely contributory; it is transformative and pivotal to the continent’s future. As we move forward, our strategies and investments must reflect a commitment to supporting the rise of women in business. The challenges are significant, but with a focus on leveraging technology and fostering inclusion, we can unlock a future of limitless potential for Africa and beyond.
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