Celebrating the Rising Power of Women Entrepreneurs in Africa’s Economic Future

By SOLmate

As Africa commemorates Africa Month, various data underscores the vital role women entrepreneurs play in shaping the continent's economic landscape. According to the OECD, Africa has the highest proportion of women-led businesses globally, with over a quarter of all startups owned or operated by women—far surpassing the 5.7% in Europe.

This dynamic entrepreneurial wave is fuelling Africa’s economic engine. The World Economic Forum reports women account for 58% of the continent’s self-employed population and contribute roughly $300 billion annually - about 13% of Africa’s GDP.

Jonathan Holden, COO of leading digital wallet provider SOLmate, emphasises the significance: “African women entrepreneurs are transforming markets and driving growth. Their success is essential for Africa’s future prosperity, especially as we celebrate Africa Month and reflect on our shared economic journey.”

The rise of female entrepreneurship in Africa is particularly evident in countries like Botswana, South Africa and Ghana, which, according to the MasterCard Index of Women Entrepreneurs 2021, rank among nations with the highest percentage of women entrepreneurs worldwide. In South Africa specifically, women are establishing businesses across diverse sectors, from technology to agriculture, retail to manufacturing.

Despite their significant contributions, African women entrepreneurs face substantial barriers, and financial inclusion remains a critical accelerator for women's entrepreneurial success. The World Bank reports women entrepreneurs across sub-Saharan Africa earn 34 per cent less profit than men on average, with persistent challenges including limited access to capital, inadequate financial infrastructure and lingering gender discrimination. They therefore stand to benefit considerably from innovations in financial technology, including, notably, the rise of digital wallets.

Digital wallets offer a safer and more convenient way to make payments, eliminating the need to carry cash or physical cards. This is particularly advantageous for women, providing them with greater financial control and security. Digital wallets provide women with a convenient and secure way to manage their finances without needing a traditional bank account. This accessibility is crucial for women in rural areas or those with limited access to banking services, helping them to participate more actively in the economy.

"Our digital wallet solutions are helping to bridge the $42 billion funding gap for women entrepreneurs in Sub-Saharan Africa," Holden explains. "Almost half of SOLmate’s clients are women, and SOLmate remains committed to empowering women entrepreneurs across the continent with the financial tools they need to succeed. By providing secure, accessible financial tools, we enable women to overcome traditional banking barriers, manage international remittances and build business credit histories."

The impact extends beyond individual businesses. Research from the African Development Bank confirms that female-led startups serve as key drivers of economic development, contributing significantly to job creation, community development and financial integration. Women entrepreneurs are more likely to employ other women, reinvest in their communities and drive positive social change alongside commercial success.

Looking ahead, the continued growth of women's entrepreneurship in Africa depends on creating an ecosystem that addresses both financial and social barriers. Digital financial solutions like SOLmate provide a crucial foundation, offering women entrepreneurs the tools to manage finances, accept payments and build business credit regardless of location or previous banking relationships.

“The future of African business is increasingly female-led,” Holden concludes. “Although their contribution is already exceptional, there is so much more opportunity for participation.

A recent McKinsey study showed that sub-Saharan Africa could add an additional 12 per cent to its annual GDP if the gender gap between men and women was closed. By supporting women's economic participation we are investing in Africa's most powerful catalyst for sustainable growth and prosperity. The entrepreneurial spirit of African women represents not just an economic opportunity, but a transformative force for the continent's future.”