Looking to launch your business in Africa as a female startup founder, there are countries to prefer over others. According to Mastercard Foundation’s latest annual Index of Women Entrepreneurs (MIWE), it is easier to succeed as a woman founder in South Africa than in 11 other African countries considered in the report. The report notes that this shows progress in access to finance and entrepreneurship education for women.
“Some of the highest proportion of women’s business ownership are observed in Uganda (39.1% female business owners out of total owners), Botswana (38.5%) and Angola (30.6%) despite extremely poor support for SMEs,” the report notes.
Here Is What You Need To Know
- The Mastercard Women Entrepreneurs Index 2020 (MIWE) examined the business environment in 58 economies representing the global female workforce, an analysis using indicators on the progress made in the development of female entrepreneurship, and which classifies each economy according to its performance over the past year.
- Success factors favorable to women entrepreneurs are due to achievements in institutional support for businesses, entrepreneurship education, and the high visibility of women leaders.
- In addition, the cultural perceptions of women entrepreneurs as well as their willingness to take risks to start a business also improves the business environment for women.
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Which African Countries Rank Highest In Their Support For Women Founders?
- In this ranking, South Africa, which occupies 23rd place in the world, leads on the black continent, with a score of 64.42. Botswana, 31st in the world, occupies second place with 62.42. Ghana then comes in 3rd place (37th worldwide) with a score of 60.18. Uganda, Nigeria and Angola respectively occupy the next ranks, scoring over 50.
- Malawi and Ethiopia have the average and occupy 7th and 8th positions respectively in the African ranking.
- The bottom 3 places in Africa are occupied by Tunisia, Egypt and Algeria, which score below average and are ranked among the bottom countries globally.
- The index, however, reveals that the economic contribution of women as business owners and entrepreneurs is significantly greater in weaker economies such as Uganda, Angola, Malawi, Ghana and Botswana. In these countries, women who own 30–40% of businesses challenge socio-cultural barriers and obstacles such as lack of education and access to capital.
- This year in particular, women have been much more vulnerable to the general disruption caused by the Coronavirus pandemic. This is due to the over-representation of women in the most affected jobs and sectors (tourism, transport, retail, restaurant services, etc.), and the pre-existing gender disparity in companies (lower digital skills, financial marginalization, poor access to education, etc.).
- The Global Top 3 shows Israel at the top of the rankings (score of 97.4), largely thanks to institutional support from SMEs, focused on funding and promoting networking opportunities. In 2nd position, the United States (score of 74), due to the cultural consideration favorable to entrepreneurship, high visibility and leadership. Switzerland ranks 3rd in the world (score of 71.5) for its significant progress in supporting SMEs.
- Click here to access the full report from the Mastercard Foundation.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer