Africa’s business sector is undergoing significant transformation, with growing recognition that inclusive growth relies not only on economic reforms but also on promoting gender equality. Women in Africa have long played pivotal roles in agriculture, trade, and informal enterprises. However, despite their substantial contributions, they remain underrepresented in leadership positions and face considerable barriers to accessing equal opportunities and resources.
The gender gap in Africa’s business sector is both wide and multifaceted. While African women are notably entrepreneurial, with many managing successful small and medium-sized enterprises (SMEs), they face disproportionate challenges. According to the World Bank, women-led businesses are more likely to be underfunded than those led by men. Many lack the collateral, networks, and financial literacy required to scale their businesses.
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In the corporate world, the 2023 McKinsey & Company report on women in the workplace reveals that women hold only 24% of board seats across African countries and account for just 18% of executive managers. These figures are alarming, particularly as global studies consistently demonstrate a strong correlation between gender diversity in leadership and enhanced company performance. The absence of women in top decision-making roles deprives Africa’s business sector of the innovation and diverse perspectives that women bring.
Women face significant challenges in accessing financial resources, as traditional banking systems are often structured around male-dominated industries, with women perceived as higher-risk borrowers. In many African societies, cultural norms impose restrictive gender roles, expecting women to balance household responsibilities with work, which limits the time they can devote to their businesses.
Additionally, women in Africa frequently have less access to education and vocational training, which hampers their ability to participate fully in the business world. Skills development programmes are often male-dominated, with fewer opportunities for women to acquire the technical expertise and leadership training necessary to rise to senior positions. Furthermore, gender-based violence and harassment—both in workplaces and during business interactions—discourage women, undermining their confidence and professional growth.
Despite these significant challenges, efforts are underway across the continent to close the gender gap in business. Governments, businesses, and civil society organisations increasingly recognise the need for action and are implementing initiatives to economically empower women.
Several African governments have introduced policies to address gender inequality in the business sector. Rwanda, for example, has established benchmarks for gender equality in leadership roles, with women occupying 51% of parliamentary seats and 30% of ministerial positions. Similarly, countries like South Africa, Kenya, and Nigeria have implemented national gender equality policies and initiatives aimed at increasing women’s economic participation.
Financial institutions, both domestic and international, are increasingly investing in women-led businesses. Initiatives like SheTrades by the International Trade Centre and funds such as the African Women Impact Fund provide women entrepreneurs with greater access to financing, training, and networking opportunities. Venture capitalists and angel investors are also showing greater interest in women-led startups. In Kenya, for instance, initiatives such as Women in Technology Kenya and African Women in Technology offer platforms for women entrepreneurs in the tech space to pitch ideas, gain mentorship, and secure funding.
Mentorship and role models are critical for fostering women’s leadership in business. Programmes like the African Women’s Entrepreneurship Programme (AWEP) and the Women’s Investment Club provide invaluable support by connecting women with experienced mentors, professional networks, and educational resources. Corporate Africa is also acknowledging the value of boardroom diversity. Companies such as Safaricom, Zenith Bank, and AngloGold Ashanti have made significant progress towards achieving gender balance in senior leadership.
Bridging the gender gap in Africa’s business sector will not happen overnight, but the progress being made suggests a brighter future. Increased participation of women in the economy will accelerate the continent’s journey towards achieving the United Nations Sustainable Development Goals (SDGs). The key to sustained progress lies in continued advocacy for gender equality, robust public-private partnerships, and dismantling the structural barriers that constrain women’s potential.
