The Rise of Spotify and Female Empowerment in Africa: A Deep Dive

In the latest edition of Marketplace Africa, CNN’s Eleni Giokos engages with Phiona Okumu, Spotify’s Head of Music for sub-Saharan Africa, to explore how the streaming giant is making waves in the African market. This conversation highlights not only Spotify’s strategic growth but also the broader narrative of female empowerment in Africa’s tech landscape, as illustrated by the experiences of entrepreneurs like Ife Durosinmi-Etti and Fara Ashiru Jituboh.

Spotify’s Strategic Expansion in Africa

Spotify made its debut in South Africa in 2018 and expanded to 38 additional African countries in 2021. According to Okumu, the platform is resonating with a youthful audience, which is crucial in a continent characterized by its diversity. "We needed to make sure that the product was custom-made for the region," she emphasizes, acknowledging the unique musical complexities of Africa.

Okumu points out that the global music scene is increasingly recognizing African talent. Artists like Wizkid have achieved Billboard success, a feat that seemed unattainable a decade ago. "Streaming is enabling discovery," she states, underscoring how platforms like Spotify are transforming the music industry.

Adapting to Local Needs

One of the significant challenges Spotify faced was the financial landscape in Africa, where many individuals are unbanked and do not use credit cards. To address this, Spotify partnered with M-PESA, a mobile payment service popular in Kenya. This partnership exemplifies Spotify’s commitment to understanding and adapting to the local lifestyle, ensuring that their product aligns with the needs of their audience.

The playlist "African Heat" serves as a prime example of Spotify’s tailored approach, showcasing a variety of African music and enabling global listeners to discover the continent’s rich musical heritage. Okumu notes, "When you see them being reflected in global charts, then you know that it’s not just a story that we are telling ourselves; the success is global, it’s real, it’s exciting."

The Female Fintech Gap

Shifting focus to the tech landscape, CNN’s conversation with Ife Durosinmi-Etti, founder and CEO of Herconomy, sheds light on the challenges women face in securing funding for their startups. According to the World Bank, female-led startups received only 3% of the nearly $2 billion invested in African tech startups from 2013 to 2021. Durosinmi-Etti articulates a pressing issue: "Women are over mentored and underfunded. We need to do more to fund more women and ensure that their businesses actually grow from small businesses to big businesses."

Success Stories in Female Entrepreneurship

Fara Ashiru Jituboh, founder and CEO of Okra, offers a contrasting narrative. In 2021, she successfully raised $3.5 million in venture capital funding, highlighting a growing trend of increased investment in female-led ventures. "Last year was one of the biggest funding years generally across the board," she notes, emphasizing the surge in venture capital flowing into technology companies.

Maya Horgan Famodu, founder of Ingressive Capital, adds another layer to this discussion. She believes that advancements in technical contributions, talent, and infrastructure are propelling Africa into a new era of technology. "We’re seeing the version 4.0 of a typical emerging market technology ecosystem," she states, pointing to the increasing presence of women in leadership roles within the tech industry.

The Importance of Diversity

Horgan Famodu also highlights the importance of diversity in investment. With regulations now requiring that at least 30% of board members be female in Nigeria, there is a growing recognition of the value that diverse teams bring to the table. "There is a literal higher return on investment and higher IRR with diverse teams," she asserts, reinforcing the idea that inclusivity is not just a moral imperative but also a smart business strategy.

A Changing Landscape

Despite the challenges, Durosinmi-Etti remains optimistic about the future. "While funding is very difficult for women to get, some women are getting it, and it is opening up. Things are changing," she concludes. Horgan Famodu echoes this sentiment, stating, "We are all capable and we are all requisite. We’re all required to build a better Africa."

In this evolving landscape, both Spotify’s innovative approach to music streaming and the growing recognition of female entrepreneurs illustrate a dynamic shift in Africa’s economic narrative. The continent is not just a market; it is a vibrant ecosystem of talent, creativity, and resilience, poised for a promising future.