A quiet revolution is brewing across Africa, with women taking centre stage as entrepreneurs. They’re driving innovation, shaping the continent’s future, and representing a vast, untapped wellspring of talent. Studies by McKinsey & Company show companies with the highest gender diversity on executive teams outperform financially by 27 percent. However, despite their dedication and undeniable talent, these women entrepreneurs face a gauntlet of challenges. Limited access to funding, the scarcity of experienced mentors, and the persistence of outdated societal norms all conspire to hinder their progress.
Empowering women isn’t simply the right thing to do; it’s a strategic imperative for a thriving Africa.
Q: “These women demonstrate remarkable financial acumen, stretching resources further and achieving superior profitability even with less capital.”
A win for businesses, communities, and women
Investing in female entrepreneurs creates a ripple effect of positive change. They represent a vast pool of untapped talent. Multiple studies have documented the financial benefits of this untapped resource, highlighting how businesses led by women deliver superior returns on equity. We not only unlock their potential but also unleash a cascade of positive change that strengthens businesses, communities, and the continent as a whole by investing in them.
Read also: Access bank supports women entrepreneurs to tap $2bn event industry opportunity
Take Wendy Luhabe, a pioneering South African social entrepreneur. Recognising the challenges women faced in the formal economy, she founded Women Investment Holdings in 1993, the first woman-owned company on the Johannesburg Stock Exchange. This groundbreaking initiative shattered glass ceilings and empowered countless women entrepreneurs by providing them with the critical resources and opportunities they needed to thrive. Luhabe’s commitment to social change continues to inspire generations, solidifying her place as a pioneer who paved the way for a more equitable and prosperous Africa.
Throughout my career driving positive change across Africa, from finance to healthcare access and infrastructure development, I’ve consistently witnessed the profound power of women’s leadership. I get to collaborate with an amazing group of women leaders and business owners who are coming up with brand new solutions for healthcare. Mentoring future female business leaders makes this even clearer. Their incredible determination and the pure genius of their ideas constantly inspire me. It shows just how much positive change can happen when we support these women.
The power of women entrepreneurs
Women entrepreneurs are a driving force for innovation and community development in Africa. They often target underserved markets or create solutions specifically tailored to their communities’ needs. This injects fresh ideas and fosters a more innovative business landscape across the continent. Furthermore, these businesses are deeply invested in their local areas. Women entrepreneurs understand the challenges their communities face and are more likely to reinvest profits back into local development, creating a positive ripple effect that strengthens the communities they serve. The impact extends beyond social good. These women demonstrate remarkable financial acumen, stretching resources further and achieving superior profitability even with less capital. This financial prowess translates into sustainable businesses that benefit not only the entrepreneurs themselves but also all stakeholders involved.
Building the ecosystem for success
To help them thrive, a multi-pronged approach is needed. Firstly, access to funding is crucial. Special funds and investors focused on women-owned businesses are critical. This can involve public-private partnerships, where governments collaborate with companies to create funding mechanisms. Impact investors, driven by social good alongside financial returns, can also play a vital role. Furthermore, networks of successful individuals who are passionate about supporting female founders can be a powerful source of financial resources.
Secondly, strong support systems are essential. Connecting experienced business leaders with these rising stars provides invaluable mentorship and guidance. Training programmes designed for their needs, in areas like finance, marketing, and business strategy, equip them with the tools they need to succeed. Building strong networks is equally important. Creating platforms for women entrepreneurs to connect, share experiences, and learn from each other fosters collaboration, knowledge sharing, and a sense of community. This collective voice becomes a powerful tool for advocacy and further fuels their success.
Finally, policy and regulatory reform play a vital role. Governments can enact policies promoting gender equality in the workplace, facilitate access to finance, and provide childcare options for women entrepreneurs. These reforms will create a more level playing field and break down traditional barriers, allowing these talented women to thrive.
The future is female, and Africa is flourishing.Q: “These women demonstrate remarkable financial acumen, stretching resources further and achieving superior profitability even with less capital.”
We invest in a brighter future for Africa by investing in female entrepreneurs. Their success isn’t just a social good; it’s a strategic economic driver. As leaders, we have a responsibility to recognise their potential, provide the necessary support, and watch them become the architects of Africa’s thriving future.
About the Author:
Ota Akhigbe is a leader with over 15 years of experience driving positive change in Africa. Throughout her career, she has consistently demonstrated a strategic approach, securing substantial funding, forging strategic partnerships, and leading complex programmes with measurable improvements in various outcomes and community development. Leveraging her data-driven approach and multi-faceted expertise, Ota is a champion for sustainable development initiatives across the continent.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
