Women-led businesses in Africa receive only a fraction of available capital despite high entrepreneurship rates​​

  • Women-led businesses in Africa raise significantly less funding than male-led counterparts. In 2017, female-led startups secured only $1 for every $25 raised by male-led startups, and this disparity persisted through 2024.
  • Despite making up 26% of all entrepreneurs in Africa, women receive less than 10% of total investment capital.
  • Women in Africa face structural financing challenges, including limited collateral, fewer investment networks, and biases in lending decisions.
  • While some countries have introduced financial inclusion programmes, overall access to credit for women remains disproportionately low.
  • The rise of women-focused venture funds, such as WIC Capital and Janngo, signals a slow but emerging shift towards more equitable funding distribution.
  • If this trend continues, Africa risks stifling economic growth by not fully leveraging the entrepreneurial potential of women-led businesses.​​

The gender financing gap remains a barrier to inclusive economic development in Africa. Women entrepreneurs continue to struggle with access to capital, with financing gaps driven by structural biases, regulatory constraints, and limited access to financial institutions.

Between 2017 and 2024, data shows that while overall investment in African startups grew, funding to female-led enterprises stagnated, widening the gap. The limited access to capital restricts business expansion, job creation, and economic resilience.​​

A shift toward more inclusive financing mechanisms, such as targeted credit products, blended finance models, and women-led investment funds, could help close the gender financing gap and unlock Africa’s full economic potential.

Source:

Media Report, Bill & Melinda Gates Foundation

Period:

2024
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