Africa is leading the world with the highest proportion of women entrepreneurs, a trend that is particularly evident in South Africa. The continent’s female entrepreneurship rate has climbed to 25.9%, meaning that one in four women is now running her own business.
Economic Necessity and Cultural Roles
The surge in female entrepreneurship in Africa is largely driven by economic necessity and cultural roles. Many women turn to entrepreneurship to support their families and gain financial independence. In South Africa, where 40% of children grow up in single-parent households, women are increasingly becoming the primary breadwinners. With a female unemployment rate of 29%, many are compelled to find alternative means of financial stability, often through entrepreneurship.
Cultural Expectations and Informal Economy
In many African cultures, women are seen as the backbone of their families and communities. This cultural expectation often drives them to seek innovative ways to support their households, such as selling traditional foods or providing childcare services. These ventures align with their everyday responsibilities, pushing them toward entrepreneurship.
Transforming Challenges into Opportunities
African women are redefining financial independence by turning challenges into opportunities. They leverage their skills and creativity to build businesses that not only provide financial freedom but also challenge traditional workplace dynamics. By creating their own workplaces, they are leveling the playing field and fostering environments that promote equal rights and opportunities.
Empowering Examples: Hetty the Entrepreneur
Hetty Boachie-Yiadom, a business and monetization expert, exemplifies the spirit of African women entrepreneurs. She helps African businesses thrive online, focusing on digital marketing and online monetization strategies. “African women are driven by necessity and resilience,” Hetty says. “Economic challenges often force women to become entrepreneurs. There’s also a growing recognition of women’s potential as economic contributors.”
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The Role of Fintech in Supporting Female Entrepreneurs
iKhokha, a fintech company in South Africa, has observed a 30% increase in total payment volume (TPV) from women entrepreneurs between 2022 and 2023. This growth reflects the success and resilience of female-owned businesses, with 78% of them achieving profitability.
Matt Putman, CEO of iKhokha, notes, “There’s been a significant increase in the number of female-owned businesses trading with iKhokha, and we are committed to increasing this number.”
Access to working capital is crucial for the success of these businesses. Since 2019, iKhokha has provided over R1.2 billion in funding 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.
Building a Supportive Ecosystem
iKhokha offers a full ecosystem of tools designed for businesses of all sizes and industries, from card machines to business funding, ecommerce products, and an intuitive app. The company prides itself on providing entrepreneurs with the support they need to take their businesses to new heights.
Paving the Way for a Brighter Future
With support from companies like iKhokha, women entrepreneurs in Africa are transforming not only their own lives but also their communities. Their journey is a testament to strength and resilience, showing that with the right support, anything is possible. These women are paving the way for a brighter, more equitable future, proving that by believing in better business, they can achieve remarkable success.