Across Africa, more women than in the past are using digital tools to build businesses that create jobs, support local artisans, improve education and tackle other problems in society.
From selling products on Meta’s messaging platform WhatsApp, to developing their own mobile apps and online marketplaces, they are using technology to reach new customers and grow their companies.
That’s according to fresh research from ESCP Business School, the Gordon Institute of Business Science in South Africa, and the United Nations Conference on Trade and Development (UNCTAD). It finds that Africa’s growing number of women entrepreneurs are boosting their local economies but still face steep barriers, from poor internet access and limited financing to gender bias.
The research, led by Alisa Sydow, associate professor of entrepreneurship and innovation at ESCP, shows how technology is helping them overcome some of these challenges, while calling for governments and investors to do more to turn that progress into lasting change.
“Ambitious female entrepreneurs realise that digital tools and business models can help them achieve their goals,” Sydow says.
“The combination of creating societal impact and solving institutional problems while using new digital technologies is fascinating. This was the starting point for exploring women’s entrepreneurship in the digital economy in Africa.”
The study draws on surveys and interviews with more than 90 women entrepreneurs from 13 countries in Sub-Saharan Africa.
Ambitious female entrepreneurs realise that digital tools and business models can help them achieve their goals.
Exporting smartly
For Sydow, the key point was not the findings themselves, but what they say about progress toward gender equality in entrepreneurship.
“Most of the key findings were already well-known; we are at a stage where we don’t need more studies highlighting challenges and barriers,” she says. “What we need is change and action to start improving the situation.”
One new insight from the data showed how many women are exporting goods abroad from Africa, but often without a clear strategy.
Sydow says that 64% of women-led businesses in Africa export, but most do so on a limited scale: 68% export less than a quarter of their total sales, and 75% sell to only a few countries.
Most exports happen by chance, through personal connections, rather than as part of a long-term plan. “If your export business only accounts for 1% of total sales, it is probably not worthwhile,” she says.
While exporting is often unplanned, many women are very deliberate in how they use digital tools to sell their goods and services across borders.
“For small-scale founders, Instagram and WhatsApp are some of the most important digital platforms for online sales, despite how simple they may seem,” Sydow says. “Most of them do not focus on building an e-commerce platform, but rather on selling directly through [social media].”
Some are also building their own apps and online platforms, showing that they are moving beyond ready-made tools like WhatsApp to create original digital products and businesses.
Barriers that refuse to budge
Yet, many obstacles remain. Access to reliable internet and affordable digital tools continues to limit growth.
“In some countries, such as Kenya and Nigeria, access is guaranteed, but the issue is that they cost too much,” says Sydow. “In countries like Benin and Mali, access may not even be guaranteed in some areas, especially outside the main cities.”
Cultural barriers also persist. “We have heard many examples, from sexual harassment during business meetings to being asked to make tea and coffee just because she was the only woman in the room,” Sydow says. “This clearly shows that new policies and regulations are not enough; they must be implemented and followed.”
Still, many women continue to succeed despite these problems. “The strength of these women entrepreneurs is their ability to cope with and circumvent these challenges to build their businesses,” she adds.
The strength of these women entrepreneurs is their ability to cope with and circumvent these challenges to build their businesses.
What needs to change
Sydow outlines three key actions for governments and investors that could help remove barriers and create better conditions for women entrepreneurs.
First, policymakers should make international trade simpler and more accessible for women entrepreneurs. She suggests creating an online platform that helps women understand how to handle exports, payments and taxes, which can be complicated.
Second, she says governments and banks should also improve access to finance, as many women still rely on personal savings to grow their companies. “There need to be more customised offerings, such as loans, to make it more attractive for women to ask local banks for credit,” Sydow says.
She also suggests offering tax breaks or deductions to investors who fund women-led companies.
Finally, governments, media and business networks should help raise the visibility of women entrepreneurs and their successes. “Communities such as eTrade for Women are providing visibility to the excellent work women are already doing,” she says. “These communities can serve as cultural change makers and role models.”
The study ultimately shows that women entrepreneurs are driving innovation across Africa, but they still need more support to grow and scale their companies.
“We must ensure that we start changing things and tracking the changes to understand if we are moving in the right direction,” Sydow says. So the next step is not more research but concrete action, putting solutions in place and tracking progress to see whether conditions for women entrepreneurs are truly improving.