Women in Africa are among the most entrepreneurial in the world. In sub-Saharan Africa, they make up more than half (58%) of the self-employed population in nonagricultural sectors and are more likely to become entrepreneurs than men — the only region in the world where this is true.
But they do so in the face of a plethora of obstacles. Across the continent, gender disparities persist in many areas of daily life: A recent report found that women enjoy barely half of the social, economic, and representation opportunities available to men. Youth unemployment is higher among women, who are then disproportionately represented in vulnerable employment in the informal economy.
For entrepreneurs, this gap is exacerbated — women entrepreneurs in sub-Saharan Africa earn 34% lower profits than men. Their businesses consistently perform worse than those of their male counterparts, with fewer employees and lower average sales.
Women entrepreneurs face difficulties in accessing loans and other financial services: There is an estimated $42 billion gender financing gap across the continent. Data from 10 African countries found that the typical male-owned firm has over six times the capital investment of female-owned enterprises.
With more inclusive policies and practices, however, young women have the potential to boost Africa’s gross domestic product and create tens of millions of jobs. Betting on young women entrepreneurs just may be the key to unlocking the continent’s growth.
About the author
Emma Smith@emmasmith_bcn
For four years, Emma Smith covered careers and recruitment, among other topics, for Devex. She now freelances for Devex and has a special interest in mental health, immigration, and sexual and reproductive health. She holds a degree in journalism from Glasgow Caledonian University and a master’s in media and international conflict.
