The untapped potential of
Africa’s women entrepreneurs

Women in Africa are among the most entrepreneurial in the world. In sub-Saharan Africa, they make up more than half (58%) of the self-employed population in nonagricultural sectors and are more likely to become entrepreneurs than men — the only region in the world where this is true.

But they do so in the face of a plethora of obstacles. Across the continent, gender disparities persist in many areas of daily life: A recent report found that women enjoy barely half of the social, economic, and representation opportunities available to men. Youth unemployment is higher among women, who are then disproportionately represented in vulnerable employment in the informal economy.

For entrepreneurs, this gap is exacerbated — women entrepreneurs in sub-Saharan Africa earn 34% lower profits than men. Their businesses consistently perform worse than those of their male counterparts, with fewer employees and lower average sales.

Financial institutions don’t understand young women or offer products that cater to their needs, said Esther Dassanou, director of gender programs at the Mastercard Foundation. Women entrepreneurs, for example, undergo the same financial risk assessment as male-owned enterprises or corporate businesses, despite many young women lacking the identification documents needed to open bank accounts or the property requested as collateral for loans, she explained. Notably, only about half of female business owners have a bank account, compared to 59% of male business owners.

Additionally, digital illiteracy and limited digital access, particularly in rural areas, often impede women entrepreneurs from learning about or leveraging different markets, according to Olivier Furdelle, managing director at Teranga Capital — an impact investment fund that supports small and medium-sized businesses in Senegal and Gambia.

There’s huge potential in investing in entrepreneurs such as Abdulai. According to Furdelle, women are more likely than men to reinvest in health, education, and the overall well-being of their communities. Given that they are the primary decision-makers for 89% of household purchases in Africa, investing in women entrepreneurs delivers strong economic and social returns.

A report by the Mastercard Foundation cites a staggering 2024 finding by McKinsey: Young women's participation in the African economy could add up to $287 billion to the continent's GDP — representing a 5% increase — and create 23 million jobs.

In northern Ghana, Abdulai sees clear signs that AMAATI’s collaboration with landless women is bringing benefits to entire communities. Scaling up the production and processing of fonio has created jobs across the value chain, reducing unemployment and boosting economic growth in a region where poverty is more prevalent than in the rest of the country, she said.

AMAATI’s expansion was supported through the Grains for Growth, or G4G, program, an initiative between the Mastercard Foundation and IDH, an organization that convenes private and public stakeholders to tackle challenges in global and local value chains. The G4G program, which works to develop inclusive, economically viable grain supply chains, provided an initial business analysis of AMAATI’s strengths and weaknesses. This was followed by training on post-harvest management, leading to a 10% reduction in post-harvest losses and a 30% increase in raw material supply, according to Abdulai.

Beyond improved yields, AMAATI’s collaboration with local leaders is also helping to reshape long-standing cultural norms around land ownership in rural communities. Empowering these women “elevates [their] social standing within their communities, fostering respect and greater inclusion in decision-making,” said Abdulai.

To enable young women entrepreneurs to reach their potential while unlocking billions for the African economy, Dassanou urged financial program and product designers to “challenge the status quo.”

Looking at indigenous financial mechanisms — such as village savings — and how those could be replicated to work for young women would be a good starting point, Dassanou suggested. She also referenced the idea of exploring alternative forms of collateral that don’t rely on land or property, and building risk mitigation systems so that young women aren’t left exposed at the first sign of a crisis.

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