Why Africa Has More Women Entrepreneurs Than Anywhere Else
The statistics are compelling: Africa has the highest proportion of female entrepreneurs globally, and the numbers in South Africa are a testament to this dynamic change. The entrepreneurship rate for women on the continent has increased to 25.9%, with 1 in 4women running their own businesses.
Africa’s high number of women entrepreneurs is deeply rooted in economic necessity, cultural roles, and extensive participation in the informal economy.
Economic necessity drives many women to entrepreneurship to support their families and achieve financial independence. With 4 in 10 children growing up in single-parent homes in South Africa, women are stepping up as primary breadwinners in a movement fuelled by resilience, innovation and a fierce determination to succeed.
As the responsibility of raising the next generation falls largely on single mothers, many face the harsh reality of limited formal employment opportunities. The 29%unemployment rate amongst women pushes them to seek alternative paths to financial stability.
In many African societies, women are traditionally seen as the backbone of their families and communities. Cultural expectations often push women to find innovative ways to support their families, such as selling traditional foods and offering childcare services. This drives them toward business ventures that align with their everyday responsibilities.
Women are rewriting their stories, transforming challenges into opportunities and redefining what it means to be financially independent. They’re leveraging their skills and creativity to build businesses that free them financially and challenge traditional workplace dynamics. By developing their own workplaces, they’re also levelling playing fields and cultivating spaces that promote equal rights and opportunities.
An example of a woman entrepreneur taking the reins is Hetty the Entrepreneur, a business and monetisation guru who helps African businesses thrive online. Through her business, Hetty Boachie-Yiadom seeks to grow Africa’s digital footprint through online monetisation and digital marketing strategies.
“I’ve always had an entrepreneurial spirit. African women are driven by necessity and resilience. Economic challenges often force women to become entrepreneurs. Additionally, there’s a growing recognition of women’s potential as economic contributors,” she says.
Working closely with South African entrepreneurs, iKhokha has observed a significant 30% increase in total payment volume (TPV) from women entrepreneurs between 2022 and 2023. This growth mirrors the success and resilience of female-owned businesses, with 78% of them in South Africa achieving profitability, as noted by SME Toolkit.
Matt Putman, CEO of iKhokha, states: “There’s been a significant increase in the number of female-owned businesses trading with iKhokha, and we are committed to increasing this number.”
A critical element for the success of these businesses is access to working capital. iKhokha has advanced more than R1.2bn since 2019 to female entrepreneurs, enabling them to scale their operations and achieve greater success.
“iKhokha is investing in the future of South Africa by equipping women with the resources and confidence to build sustainable, impactful businesses,” says Putman.
From a range of card machines to business funding, ecommerce products and an intuitive app, the iKhokha’s full ecosystem is designed for businesses of all sizes and industries. The fintech prides itself on providing entrepreneurs with the support and tools they need to take their businesses to new heights.
With support from companies like iKhokha, women are transforming their lives and their communities, paving the way for a brighter, more equitable future. The journey of these entrepreneurs is a testament to their strength and resilience, demonstrating that by believing in better business and having access to the right support, anything is possible.
