Female ‘Techpreneurs’ are Taking Their Place in Africa’s Male-Dominated Fintech Boom, but Gender Bias Makes It Harder for Them to Access Finance and Grow Their Businesses
In recent years, Africa has emerged as a vibrant hub for fintech innovation, with a growing number of startups revolutionizing financial services across the continent. However, while the fintech boom is often celebrated, it is crucial to recognize the challenges faced by female entrepreneurs in this space. Despite their significant contributions, women in fintech encounter systemic barriers that hinder their access to finance and opportunities for growth.
The Rise of Female Techpreneurs
One inspiring example of female entrepreneurship in Africa’s fintech landscape is Oluwatosin Olaseinde. After spending a decade abroad, she returned to Nigeria in 2013 and quickly identified a gap in financial literacy resources for young professionals. Motivated by her own experiences, Olaseinde began sharing her knowledge through engaging tutorials on Instagram. To her surprise, her platform, MoneyAfrica, gained immense popularity, leading her to establish a comprehensive online financial literacy portal. Today, MoneyAfrica boasts a community of over 300,000 followers and is projected to earn $1 million in revenue this year.
Olaseinde’s journey exemplifies the potential of female techpreneurs in Africa. As the fintech sector expands, women like her are stepping into leadership roles, driving innovation in areas ranging from digital payments to investment platforms. Yet, despite their successes, many female entrepreneurs continue to face significant hurdles.
The Gender Funding Gap
The funding landscape for female-led startups in Africa is starkly imbalanced. From 2013 to 2021, less than 5% of the total $12.6 billion in funding for tech startups went to all-female founding teams, while a staggering 82% was allocated to all-male teams. This disparity highlights the systemic gender biases that persist within the investment community.
Industry experts argue that the narrative surrounding the lack of female techpreneurs is misleading. Martha Mghendi-Fisher, founder of African Women in Fintech and Payments, asserts that investors often overlook the wealth of female talent in the sector. “It’s nonsense for investors to claim that there aren’t any women entrepreneurs in fintech to invest in,” she states. This sentiment is echoed by many female founders who report facing additional scrutiny and hurdles when seeking investment.
Breaking Into the Boys’ Club
Despite the challenges, Africa’s fintech sector is making strides in promoting gender diversity. Research indicates that around 3.2% of fintech firms in Africa are founded solely by women, which is double the global average of 1.6%. Moreover, African fintechs tend to have more female board members compared to other regions.
Trailblazers like Jihan Abass, founder of Lami Technologies, are paving the way for future generations. Abass’s company aims to increase insurance coverage among Africans through innovative digital solutions. Since its inception, Lami has raised over $1.8 million in seed funding and partnered with major institutions to sell thousands of policies. Similarly, Fara Ashiru Jituboh, co-founder of Okra, is transforming financial services in Africa with her open finance platform, which has attracted significant venture capital.
The Role of Accelerators and Support Networks
To address the funding gap and support female entrepreneurs, an increasing number of accelerators and venture capital firms are focusing on women-led businesses. Initiatives like the Catalyst Fund are crucial in providing mentorship, training, and financing to female founders. Maelis Carraro, managing director of the Catalyst Fund, emphasizes the need for a more inclusive approach to investment, advocating for changes in how investors interact with female entrepreneurs.
Creating a supportive ecosystem for women in fintech requires a multifaceted approach. This includes diversifying VC boards, promoting STEM education for girls, and celebrating successful female founders to inspire others. As Delila Kidanu, co-founder of Koa, points out, training on gender biases can help investors recognize how their decisions may adversely affect women entrepreneurs.
The Path Forward
While female techpreneurs are making significant strides in Africa’s fintech boom, the journey is far from over. The systemic barriers that hinder their access to finance and growth opportunities must be addressed to create a more equitable landscape. By fostering a culture of inclusivity and support, the fintech sector can unlock the full potential of female entrepreneurs, driving innovation and economic growth across the continent.
As the narrative around women in fintech continues to evolve, it is essential to amplify their voices and successes, ensuring that the contributions of female techpreneurs are recognized and valued in Africa’s burgeoning fintech revolution.