Investing in Female-Led Startups in Africa: A Call for Change
Investing in female-led startups in Africa is not just a matter of equity; it’s a pressing issue that reflects the broader challenges of gender disparity in funding across the continent. As of the first half of 2023, female-founded ventures secured a mere $22 million in equity funding, a stark decline compared to previous years. According to ‘The Big Deal,’ an African investment tracker, a staggering 98% of funding flowed towards startups with at least one male founder. This alarming statistic underscores the systemic challenges faced by female entrepreneurs in Africa.
The Stark Funding Disparity
The disparity in funding allocation is glaring. Female-founded startups received only 22% of equity funding, while their male counterparts secured a significant 79% share. These figures illustrate the hurdles that female founders continue to encounter in a landscape that is often skewed in favor of their male counterparts. The urgent need for gender balance in Africa’s startup ecosystem cannot be overstated, as it not only affects the entrepreneurs but also the economic growth potential of the continent.
Spotlight on Resilient Female-Led Startups
Despite these challenges, a number of resilient female-led startups are making significant strides in Africa’s tech ecosystem. We highlight 15 such startups, as identified by four prominent African investors: Uwem Umemakpan, Opeyemi Awoyemi, Isaac Ewaleifoh, and Joseph Benson-Aruna. These startups are not only overcoming barriers but are also making impactful contributions to their respective sectors.
Mwanga
Founded in 2018 by Echika Obijiaku, Mwanga is a Business Process Outsourcing firm that specializes in debt recovery for businesses in Africa. Utilizing digital-first models, Mwanga assists clients like Fairmoney and Carbon in debt recovery, customer support, and telemarketing. Opeyemi Awoyemi, managing partner at Fast Forward, emphasizes the essential nature of Mwanga’s work in the financial landscape.
Outsource Global
Opeyemi Awoyemi also highlights Outsource Global, founded in 2013, as a key player in business process outsourcing. With offices in Abuja, Lagos, and Kaduna, the startup helps businesses reduce operational costs and time. Recognized by the World Bank in August 2023 for its job creation efforts, Outsource Global has created over 2,000 jobs, with more than 50% of its workforce being female.
Herconomy
Herconomy, founded by Ife Durosimi-Etti in 2018, is a fintech startup focused on empowering women with access to financial services. Initially a community for women to access opportunities and grants, it has evolved into a paid community with 1,500 members. The startup has raised a total of $750,000, including $150,000 from the Google Black Founders Fund in 2023.
Bankly
Co-founded by Tomilola Adejana and Fredrick Adams in 2018, Bankly is a licensed microfinance digital bank offering tailored banking services. The startup has raised a total of $2.1 million, with its latest funding round in August 2023 supporting the launch of new features and services.
Healthtracka
Healthtracka, co-founded by Ifeoluwa Johnson and Victor Amusan in 2021, addresses stigmatization in healthcare by providing discreet at-home testing and diagnosis. The startup raised $1.5 million in pre-seed funding in 2022 and has been recognized for its innovative approach to health tech.
Shecluded
Founded by Ifeoma Uddoh in 2019, Shecluded provides microloans and business training to women who struggle to access credit. With a community of over 20,000 female entrepreneurs, the startup has disbursed over $500,000 in growth loans and received $100,000 from the Google Black Founders Fund in 2023.
Amini
Amini, a Kenyan climate-tech startup founded by Kate Kallot in December 2022, utilizes AI and satellite technology to gather environmental data. The startup raised $2 million in pre-seed funding in March 2023, marking a significant step in addressing environmental data scarcity in Africa.
Emergency Response Africa
Folake Adunni founded Emergency Response Africa to improve emergency healthcare infrastructure in Nigeria. With a focus on quality healthcare delivery, the startup has secured over $400,000 in funding since its inception, including investments from the Google Black Founders Fund and Techstars.
Kwara
Kwara, co-founded by Cynthia, has evolved from a pure credit platform to a back-office solution for credit unions. With a total funding of $7.5 million, the startup is recognized as one of Launch Africa’s top-performing portfolio companies.
Susu
Susu, founded by Bola Bardet, focuses on health insurance in Francophone Africa. The startup has expanded into several countries and raised $2.2 million in pre-seed funding to enhance access to affordable healthcare.
Credrails
Clara, the founder of Credrails, is building a scalable fintech infrastructure that connects businesses across East Africa and Nigeria. The startup has raised $2.5 million in total funding, positioning itself as a key player in the open finance sector.
Tushop
Founded by Cathy Chekpemboi in 2021, Tushop enables group buying of fast-moving consumer goods in Kenya. The startup raised $3 million in pre-seed funding to scale its operations, addressing the cost of living in the region.
Famasi
Famasi, co-founded by Adeola Ayoola and Umar Faruq, is a digital health platform that simplifies access to medications. The startup raised an undisclosed pre-seed round of funding in February 2023, showcasing its potential in the health tech space.
Debbo Africa
Debbo Africa, co-founded by Zara Modibbo and Aisha Wanka, focuses on providing accessible health services for women. The startup offers virtual consultations and personalized diagnostics, addressing critical health issues.
Maad
Maad, co-founded by Sidy Niang and Jessica Long, is modernizing FMCG infrastructure for informal markets in Francophone Africa. The startup has raised $530,000 in funding, enhancing the distribution and accessibility of essential products.
A Diverse Landscape of Innovation
The nominated startups reflect a clear regional and sectoral distribution, with Nigerian-based startups leading the pack, followed by notable representations from Kenya and Senegal. The health-tech sector emerges as the dominant domain among these startups, closely followed by fintech ventures, indicating a significant focus on innovative solutions that address pressing needs within the continent.
In a landscape where female entrepreneurs face significant barriers, these startups exemplify resilience and innovation. They are not only paving the way for future generations of female founders but also contributing to the economic growth and development of Africa. The journey towards gender equity in funding is ongoing, but the impact of these female-led startups is undeniable.