Closing the gender gap in Africa will unlock about $287 billion to the continent’s economy by 2030, boosting GDP by five percent, a new report by Mastercard Foundation and McKinsey & Company has revealed.
The report, “Young Women in Africa: Agents of Economic Growth and Transformation By 2030,” compiled to address issues hindering women’s participation, outlined solutions to reverse the steep decline of young women’s contribution to Africa’s GDP from 18 percent in 2000 to just 11 percent in 2022.
The report noted that there is a need to turn the tide regarding women’s contribution, noting that women’s input has tanked since 2000, going from 18 percent to 11 percent. “In 2022, Africa’s collective GDP was $3.1 trillion. Young women contributed just 11 percent of this $340 billion. However, their contribution has declined steadily since 2000, going from 18 percent to 11 percent,” it stated.
It added that unemployment is higher among women than men, and the COVID-19 pandemic has increased it further. More young women are not in employment, education, or training (NEET).
Another critical issue the report raised is ensuring that young women get educated. The report recommended that issues of girls’ menstrual health and hygiene should be addressed. A UNESCO report estimated that one in ten girls in Sub-Saharan Africa misses school during their menstrual cycle. According to some estimates, this equals as much as 20 percent of a given school year.
Child marriage and adolescent pregnancy also culminate in reasons why girls miss school, according to the report. Developing second-chance education programs to enable young women who dropped out of school to get the skills and diplomas needed will help increase their opportunities to access work. Additionally, Africa needs ~16.6 million educators by 2030. Creating work opportunities for young women in sectors such as education and administration would go a long way toward filling this gap.
The report advised that both government and private sector interventions are crucial to reducing the burden of care on women and enabling more young women to engage in work activities. It noted that by 2030, addressing this burden could allow 11.4 million women to participate in the workforce.
The study spotlighted Namibia as a key model for other African nations to follow in prioritising the economic benefits of gender equality, having increased women’s economic participation from 40 percent to 42 percent in just five years.
Read also: Closing the gender gap in leadership: Wilan calls for action on key areas
It stated, “Egypt, the Democratic Republic of Congo, Ethiopia, Kenya, Mali, Nigeria, Rwanda, Senegal, Tanzania, and Uganda have the potential to achieve the fastest growth should they replicate Namibia’s strategy.”
The report added that women in Africa face significantly lower access to financial services and products than men. As of 2020, 63 percent of African women were unbanked compared to 52 percent of men. The disparity extends to underbanked populations and formal credit access, with only 13 percent of women in sub-Saharan Africa having formal credit versus 16 percent of men.
Women-owned SMEs are particularly underfunded, resulting in a 34 percent lower monthly income compared to male-owned businesses. Young women often face challenges in the informal sector due to a lack of physical assets and financial products that do not meet their specific needs.
“Fundraising has been an uphill battle as a female tech founder,” said Evelyn Kaingu, a female entrepreneur. “It has been hard with most funders to be taken seriously and provide ‘validation’ to what we’re building.”
According to Disrupt Africa’s ‘Diversity Dividend: Exploring Gender Equality in the African Tech Ecosystem,’ 55 percent of female founders have cited access to funding as one of the biggest challenges in their entrepreneurial journey.
Marieme Esther Dassanou, Director of Gender Programs at the Mastercard Foundation, said, “Empowering young women in Africa is both an economic imperative and a transformative opportunity for the continent. By addressing systemic barriers, enhancing skills, and fostering gender-inclusive policies, we can unlock $287 billion in additional GDP by 2030.
“We need to create environments where women can succeed as employees and entrepreneurs, ensuring Africa’s growth will be inclusive, sustainable, and driven by the full potential of its young women’s population.”
Enhancing young women’s digital skills and implementing inclusive policies are crucial for increasing their economic participation in Africa. In countries like Ethiopia, Ghana, Kenya, and Nigeria, only 64,000 young women work in the ICT sector. By equipping them with digital knowledge and tools, they can tap into the digital economy to market their products, access financing, and secure tech industry jobs, significantly boosting their income and contribution to economic growth. Inclusive policies are also essential to support this progress.
Countries that have successfully increased women’s economic participation, such as Namibia, have done so through policy reforms focused on education, skills development, and entrepreneurship. Namibia’s National Gender Policy, which improved school completion rates and access to vocational training for women, is a prime example of how targeted policy changes can drive economic growth and enhance young women’s roles in the economy.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
