Move Over ‘Tech Bros’: Women Entrepreneurs Join Africa’s Fintech Boom

When financial analyst Oluwatosin Olaseinde returned to Nigeria in 2013 after a decade abroad, she was determined to take charge of her finances. Diving into the world of stocks and mutual funds, she quickly realized the lack of accessible financial guidance for young professionals. This realization sparked her journey into entrepreneurship, leading her to share her insights through engaging, bite-sized tutorials on Instagram. To her surprise, her posts resonated widely, going viral and attracting a community eager for financial literacy.

“Just like me, there were young people who wanted to know how to manage their finances, but needed information in an easy-to-understand way,” Olaseinde reflected. Fast forward nearly four years, and she now heads MoneyAfrica, an online financial literacy platform that offers courses on budgeting, currency risk, inflation, and treasury bills. Additionally, she founded Ladda, an app-based investment platform, which collectively boasts a community of 300,000 on social media and over 15,000 active users. MoneyAfrica is projected to earn $1 million in revenue this year, while Ladda manages $700,000 in assets.

The Fintech Landscape in Africa

Africa has emerged as a vibrant hub for fintech innovation, particularly since the introduction of mobile money services in the late 2000s. The continent is home to a plethora of startups aiming to serve its unbanked population. In 2022 alone, fintech companies attracted over 60% of the nearly $5 billion invested in African startups, according to Briter Bridges, a market intelligence firm.

However, female entrepreneurs in this space face significant hurdles. Despite the booming sector, gender biases often limit their access to funding and opportunities. From 2013 to 2021, less than 5% of the total $12.6 billion in funding for Africa’s tech startups went to all-female founding teams, while a staggering 82% was allocated to all-male teams.

Breaking Into the ‘Boys’ Club’

Despite being a “boys’ club,” Africa’s fintech sector shows promise for female leadership. Approximately 3.2% of fintech firms on the continent are founded solely by women, which is double the global average of 1.6%. Moreover, African fintechs have a higher percentage of female board members compared to other regions, as highlighted by Findexable’s 2021 data.

Trailblazers like Jihan Abass, who founded Nairobi-based Lami Technologies in 2018, are paving the way for others. Abass’s interest in insurance was sparked by a conversation with a waiter who lacked medical coverage. Lami’s API allows businesses to offer flexible digital insurance products, and since its inception, the company has raised over $1.8 million in seed funding, partnering with major players like Kenya Commercial Bank.

In Nigeria, Fara Ashiru Jituboh co-founded Okra in 2020, aiming to digitize financial services across Africa. Okra’s open finance platform connects individuals and businesses to third-party applications in real-time, facilitating seamless financial transactions. In less than two years, Okra has attracted over 400 clients, including more than 20 banks, and raised $4.5 million in venture capital.

The Funding Gap

Despite these success stories, a stark funding gap persists between male- and female-led startups. Some attribute this disparity to a perceived shortage of female “techpreneurs,” but many industry experts challenge this notion. Martha Mghendi-Fisher, founder of African Women in Fintech and Payments, argues that investors simply need to look harder for viable female entrepreneurs.

Female founders often face additional scrutiny when pitching to venture capital firms, leading to lower valuations and funding amounts. Faith Mokgalaka, founder of Johannesburg-based Puno, noted that while VC panels may not be overtly sexist, the pressure on female entrepreneurs is palpable. “More questions are asked, additional documentation and due diligence is required,” she explained.

A recent study cited by Findexable revealed that white men control 93% of venture capital dollars, underscoring the need for more diverse investment panels.

Shifting the Narrative

In response to these challenges, an increasing number of accelerators and venture capital firms are focusing on women-led businesses. The Catalyst Fund, for instance, has supported 61 companies, with over one-third founded by women. Maelis Carraro, the fund’s managing director, emphasizes the need for a more inclusive approach to interactions with female entrepreneurs. “The whole setup in the VC space… has to change,” she stated.

Entrepreneurs advocate for more diverse VC boards, programs encouraging girls to pursue STEM careers, and initiatives celebrating successful women founders. Delila Kidanu, co-founder of Koa, an app-based savings and investment platform, highlighted the importance of training on gender biases to foster a more supportive environment for women entrepreneurs.

As Africa’s fintech landscape continues to evolve, the contributions of women entrepreneurs are becoming increasingly vital. Their innovative solutions and unique perspectives are not only transforming the financial sector but also inspiring a new generation of female leaders in technology.