Africa stands out as the only continent where more women than men choose to become entrepreneurs, according to the World Bank. According to Proparco, women comprise 58% of the continent’s self-employed population, leading the world in the number of women business owners. The IFC estimates that Africa has the highest rate of female entrepreneurial activity globally, at about 24%. However, these impressive figures do not fully translate into the startup and tech ecosystem. According to a report by Disrupt Africa, out of 2,600 African startups surveyed, only 17.3% (483 of 2786) have at least one female co-founder, and 11.1%—310, up from 230 (9.6%) in 2023—have a female CEO.
Most Diverse Nations in Africa (Female Founder/CEO)
The funding gap between female-led startups and their male counterparts is another stark reality in the African tech ecosystem. In 2024, female CEOs in the African tech ecosystem received just 2% of the total funding, amounting to $48 million (excluding exits), as reported by Big Deal. In stark contrast, male CEOs secured nearly $2.2 billion in investments. Although tech funding across the continent appears to be declining, dropping by 25% from $2.9 billion in 2023 and even further from $4.6 billion in 2022, the impact on female founders has been even more severe, with 2024 figures (2%) being more than four times less than the 2023 (8.2%) and 2022 (2.8%) according to a 2024 Disrupt Africa Report. The 2024 figure of 2% is the lowest since 2016 and is below the ten-year average of 3%, as noted in the Briter Africa Investment Report.
Yearly % of Funding of Female Founders
The Big Deal report reveals that only $21 million went to solo female founders and $123 million to gender-diverse founding teams. In comparison, solo male founders raised $430 million, and all-male founding teams secured $1.6 billion.
Total Funding raised in 2024 (excluding exits) by CEO, Gender and Gender Mix of Founders
Even more startling is that from 2013 to 2021, less than 5% of the total $12.6 billion in funding to Africa’s tech startups went to all-female founding teams compared with 82% to all-male ones. Bringing it home to Nigeria, the Briter Africa Investment Report highlights that only 10% of funded Nigerian startups from 2019 to 2023 were female-founded, securing just 0.7% of the country’s $600 million total deal volume.
This funding disparity is not unique to Africa. Interestingly, the African tech ecosystem demonstrates relatively better female representation than other regions. A 2024 Pitchbook report reveals that in 2023, companies founded solely by women received just 2% of total capital in the US and 1.8% in Europe, which is less than Africa's 8.2%. Additionally, a Findexable report shows that about 3.2% of African fintech firms are founded solely by women, double the global average of 1.6%.
These statistics clearly show the significant underrepresentation of women in the African tech ecosystem. But what drives this disparity? A complex interplay of factors ranging from unconscious biases and stereotypes, limited access to professional mentorship, underrepresentation of women in investment committees/venture capital firms and other decision-making bodies, limited financial literacy, etc. Cultural and societal biases have long discouraged women from pursuing careers in tech. Women are often steered towards roles/professions perceived as "more suitable" or “female-oriented”, such as those in education, childcare, or hospitality.
Mentorship is a crucial area where African female tech entrepreneurs often face challenges. Cultural biases, a lack of established professional networks, and a smaller pool of successful women in the tech space contribute to limited access to mentorship. According to a 2023 report from Disrupt Africa, around 40% of venture capital investors in African startups between 2022 and 2023 had at least one female founder/general/managing partner, indicating a significant presence of female representation in African venture capital firms; however, this number is still considered low and often represents only a single female leader on a predominantly male team. The scarcity of female investors in venture capital, particularly those in decision-making roles, poses a challenge for female founders. A Harvard Business Review article advised against female founders focusing solely on pitching to female investors. The article highlighted that female investors are often concentrated in funds that target earlier-stage investments, which are riskier and involve smaller amounts of capital. As a result, female VCs do not control enough assets to support female-led firms as they grow. Therefore, female founders eventually need to attract male investors to scale their businesses.
Similarly, financial literacy is a critical aspect of economic empowerment, yet women in Africa appear to be left out. One major obstacle is the lack of access to financial education and resources. According to a 2017 study by the Global Financial Literacy Excellence Center, 76% of women in Nigeria, 70% in Ghana, and 57% in South Africa are considered financially illiterate. This lack of financial knowledge has serious consequences, including limited access to financial services. Opportunity International reports that in Sub-Saharan Africa, 63% of women do not have access to a bank account. This figure is even more striking in Northern Africa, where 82% of women have no bank accounts.
Despite these daunting challenges, it is truly inspiring to see women breaking barriers and shattering glass ceilings in the African tech ecosystem. With the odds stacked against them, many female-led businesses are making significant strides and proving their resilience and innovation. Companies like PiggyVest, Shuttlers, Tix, Edukoya, Ladda, Sabi, Tyms Africa, Fez Delivery, Auto Girl, HerVest and AppsTech are not just surviving but thriving, setting new standards and paving the way for future generations of female entrepreneurs.
Acknowledging the various initiatives to address the funding gap for female-led startups is vital. In recent years, there has been a significant increase in the number of "female-focused funds" and investment firms specifically designed to support women entrepreneurs. Some notable examples include FirstCheck, a female-focused angel fund founded by Eloho Omame (Managing Director, Endeavor Nigeria) and Odunayo Eweniyi (Co-founder & COO, PiggyVest), The African Women’s Development Fund (AWDF), ShEquity, Women in African Investments (WAI) Angel Network etc. Female-focused accelerators and mentorship communities like She Leads Africa (SLA), GreenHouse Lab, ShEquity Accelerator, Africa Women Innovation and Entrepreneurship Forum (AWIEF), Lionesses of Africa Accelerator, and initiatives by organisations like AfriLabs and VC4A, are providing funding, training, and mentorship targeted explicitly towards women entrepreneurs across various sectors.
While these initiatives are commendable, much work must be done to bridge further the gap between men and women in the tech ecosystem. Empowering women is not just a matter of equity and equality; it also has an economic impact. Studies have shown that the participation of women in economic activities is good for the economy. A 2015 McKinsey study estimates that achieving gender parity could boost global GDP by $12 trillion by 2025. Similarly, the World Bank suggests that closing the gender gap in employment and entrepreneurship could lead to a 20% increase in global GDP. Furthermore, the Global Entrepreneurship Monitor (GEM) highlights that if women were supported to start and grow businesses at the same rate as men, it could result in an additional $5 to 6 trillion in global economic output.
To truly level the playing field, however, it is essential to address the root causes of gender disparity in tech. Women should be provided with the tools and resources they need to succeed and unlock their full potential, and in turn, this will create a more inclusive and dynamic tech ecosystem. That said, creating an environment that supports female entrepreneurs requires multi-stakeholder collaboration. Governments, corporations, educational institutions, non-profit organisations and citizens must work together to implement policies and initiatives that promote gender equality. This includes creating incentives for companies that invest in female-led startups, supporting STEM education for girls, and ensuring that women have access to mentorship and networking opportunities.
Women in tech have been driving innovation and shaping the industry with their groundbreaking achievements, paving the way for a more resilient and inclusive economy. Celebrating and building on these achievements can unlock even greater potential and create a brighter future where everyone has the opportunity to thrive.
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