In Africa, and always, women and entrepreneurship go hand in hand !

Women entrepreneurs represent a vital component of the flourishing economy of the African continent. This is an undeniable fact. Indeed, Africa has the highest rate of women entrepreneurs in the world, with approximately 26% of adult women involved in entrepreneurial activities.

By Dhekra Khelifi, founding partner 216 CAPITAL.

The Women in Africa Entrepreneurship Study (2018) by Roland Berger revealed that women entrepreneurs contributed between $250 and $300 billion to Africa’s economic growth in 2016, which is equivalent to about 13% of the continent’s GDP. Additionally, according to McKinsey, the female economy is the largest emerging market in the world, with the potential to add $12 trillion to the global GDP by 2025.

These women inject renewed dynamism, constant innovation, as well as unmatched creativity and resilience into their businesses. However, despite their rich tradition of entrepreneurship and their prominent presence in various economic sectors, they unfortunately remain underrepresented, especially in the fields of technology and digital.

Fewer women in technology and digital

This under representation of women entrepreneurs in the technology and digital sectors can be explained by a set of factors. Among these, structural barriers in several countries on the continent such as limited access to education and financial resources can be cited. Additionally, gender stereotypes and socio-cultural expectations, as well as unconscious and systemic biases from investors, also contribute to this situation.

Investor biases:

Investors, whether consciously or not, can fall victim to biases that directly impact their investment decisions. Missing out on an investment opportunity due to these often unconscious practices is a significant loss for the investor because their role is to unearth startups that will ensure economic gains throughout the value chain. Passing up on 50% of the sample size by excluding startups led by women due to prejudices is certainly the biggest missed opportunity in this industry!

These biases, often overlooked, and the often underestimated economic gain mean that the number of startups led by women accessing investment is very low, bordering on embarrassment.

To read the full interview and dive deeper into our conversation with Africa News Agency, click here.

In Africa, and always, women and entrepreneurship go hand in hand !