Women’s entrepreneurship in Africa

The report argues that Africa's economic future depends on enhancing women's economic roles, but cautions against legislative quotas for gender parity, such as South Africa's proposed Women Empowerment and Gender Equality Bill. While sub-Saharan Africa has the world's highest entrepreneurship rates, women face significant barriers including lower literacy rates (75% of men's) and discriminatory customary laws. The author suggests that general business environment reforms and prioritizing girls' education are more effective than gender-specific mandates.

• The South African government is pursuing the Women Empowerment and Gender Equality Bill, which would allow the minister for women, children and people with disabilities to designate companies that must fill 50% of decision-making positions with women. The bill also introduces "gender mainstreaming," requiring public and private sector policies to be measured by their impact on women. Non-compliance could result in fines of up to 10% of a firm's turnover.
• Sub-Saharan Africa has a higher rate of entrepreneurship than any other region. According to a 2013 Global Entrepreneurship Monitor (GEM) report, 27% of the workforce operates an early-stage business (less than three-and-a-half years old) and 15% operate an established firm. In comparison, Latin America has 19% in young businesses and 8% in older ones; Asia and the Pacific have 12% in both; and the European Union has 8% in fledgling and 6% in proven businesses.
• Women's entrepreneurship in Africa exists in two primary forms: a dominant group of "market women" in the informal sector who operate without licenses and work for survival, and a smaller group of educated women leading prosperous formal enterprises. Women in the formal sector often have smaller firms than men and may exhibit a greater aversion to risk due to the challenge of balancing careers with family interests.
• Significant barriers hinder women's transition to the formal sector, including incomplete legal equality, discriminatory customary laws, and education gaps. A 2011 UNICEF study found that women's adult literacy rate is only 75% that of men, and while primary education enrolment is near parity (96%), it drops to 87% at the secondary level.
• The document suggests that general improvements to the business environment—such as reducing red tape and improving governance—are more effective for women than gender-specific quotas. It cites Rwanda as a positive example for outlawing discrimination in property rights and streamlining regulatory burdens, while noting that gender-sensitive policies in Nordic countries have inadvertently drawn women away from entrepreneurship toward salaried employment.

APA

Corrigan, T. (2021). Women’s entrepreneurship in Africa. Good Governance Africa. https://gga.org/skirting-the-real-issue/

Chicago

Corrigan, Terence. Women’s entrepreneurship in Africa. Good Governance Africa, 2021. https://gga.org/skirting-the-real-issue/.

Wikipedia

{{cite report |last1=Corrigan |first1=Terence |title=Women’s entrepreneurship in Africa |publisher=Good Governance Africa |date=10 June 2021 |url=https://gga.org/skirting-the-real-issue/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{corrigan2021womens, author = {Corrigan, Terence}, title = {{Women’s entrepreneurship in Africa}}, institution = {Good Governance Africa}, year = {2021}, month = jun, url = {https://gga.org/skirting-the-real-issue/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }