Digital entrepreneurship is emerging as a lifeline for African women facing rising unemployment, inequality and funding barriers.
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Africa’s timeline to achieve economic gender parity has been pushed back by an estimated 50 years, according to a new report by Boston Consulting Group, which warned that worsening economic conditions and persistent funding barriers are slowing progress for women across the continent.
The report, titled Financing Women's Digital Entrepreneurship: A Pathway to Closing Africa's Economic Gender Gap, found that women’s economic participation in Africa has fallen 0.6 percentage points below 2022 levels, extending the region’s projected path to economic parity from 120 years to around 170 years.
The study drew on BCG’s Africa Women’s Voices Survey 2025, which surveyed approximately 3,000 women and men across South Africa, Nigeria, Ethiopia, Kenya, Morocco and Egypt.
According to the report, Africa’s post pandemic recovery has been slow and uneven, with GDP per capita growth averaging just 1.2% annually between 2021 and 2024, compared with the global average of 2.5%.
The report noted that women have been disproportionately affected because 70% remain concentrated in vulnerable and informal employment sectors.
Zineb Sqalli, managing director and partner at BCG and global lead for Gender Equality and Women Empowerment, said the findings reveal a troubling social regression alongside economic decline.
“What makes this data particularly concerning is that the regression is not limited to structural barriers,” said Sqalli.
“When we see women themselves becoming less likely to advocate for their own economic rights, it signals how deeply these setbacks are being felt at a social level. The window for intervention is narrowing.”
The report found that attitudes toward gender equality have deteriorated since 2023, with women increasingly less likely to support equal pay, financial autonomy and equal access to education.
Concerns around gender based violence and access to economic opportunities have also intensified, with 61% of women surveyed identifying gender based violence as a major concern.
Despite the setbacks, the report identified digital entrepreneurship as one of the most promising pathways for economic inclusion.
According to the survey, 66% of women across the six countries aspire to run their own businesses, with the figure exceeding 80% in Nigeria and Kenya.
One in five women surveyed already operates an online business, while two thirds are considering starting one.
Digital platforms including Facebook Marketplace and Jumia reportedly have between 40% and 50% female sellers in several African markets.
The report highlighted the practical advantages of digital entrepreneurship for women, particularly the ability to work from home, reduce exposure to unsafe commuting environments and manage household responsibilities.
However, researchers warned that access to finance remains one of the biggest barriers facing women entrepreneurs.
Women led startups attracted less than 1% of Africa’s total venture capital funding in 2024, creating an estimated $2.5 billion funding gap compared with male founded businesses over the past five years.
This is despite evidence showing that female founded ventures generate twice the revenue per dollar invested and achieve 10% higher long term growth than male led startups.
Vishakha Chopra, project leader in BCG’s Johannesburg office, said the problem lies within the structure of the investment ecosystem itself.
“Women entrepreneurs in Africa are building businesses that solve real problems in health, education, retail and agriculture, sectors that are deeply connected to community needs,” said Chopra.
“They are outperforming on the metrics that matter. The issue is not the quality of their ventures. It is that the investment ecosystem was not built with them in mind.”
The report identified several obstacles within the investment chain, including male dominated evaluation teams, perceptions that women led businesses are too risky or too early stage, and limited awareness among female founders about which investors to approach.
Researchers also called for more flexible financing structures better suited to women led businesses, including smaller funding rounds, blended finance models and increased non financial support such as mentorship and investor networking opportunities.
The report further urged Development Finance Institutions to play a more active role by deploying first loss capital and supporting gender focused venture capital funds.
Governments were also encouraged to address digital access barriers, with the report finding that 45% of women surveyed still lack regular internet access due largely to affordability challenges.
BCG said improving affordable connectivity would be just as critical as closing the funding gap if Africa hopes to accelerate women’s economic participation and entrepreneurial growth.
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