Roles of Women in Strengthening Emerging Economies

Hello there, welcome again and yes, it’s Women's History Month…Whoop Whoop! The conversations are about to roll out but first, let me remind you about the roles women play and can further play in strengthening emerging economies as we inspire inclusion this 2024.

First, what is an emerging economy?

Last year, at SAIS Women Lead International Leadership Summit held at Johns Hopkins University in Washington DC, a Cameroonian lady asked the Keynote speaker, Chimamanda Ngozi Adichie why African countries are christened 'developing' while the Western carries 'developed.' She further stated, 'every society is building out, so why label Africa 'developing?'

Deep question. Deep thoughts as I exchanged glances with my friend and the event’s organizer, Chiedo Nwankwo . Chiedo is Vice Dean Education and Academic Affairs at Johns Hopkins. She is brilliant and fiery, and our banter is largely in Nigerian pidgin so, it is safe to assume our glance held unspoken ‘E don happen’ in our heads.?

Chimamanda went on to answer the question with her typical wit, told a few stories to analyze and nicely summarized around being at different stages in the build.?

In very simple terms, emerging economies (also emerging markets) are countries that are transitioning from the developing to the developed phase in their economic development.?

These countries have sustained strong growth and stability that can produce higher-value-added goods and are more like advanced economies not only in terms of income but also in participation in global trade and financial market integration.?

Some countries like Rwanda have an impressive GDP growth forecast of 6.6%, Ethiopia – 6.2%, Tanzania – 6.1%, Uganda – 5.7%, Kenya – 5.3%,? Congo – 4.7%, Angola – 3.3%, Nigeria – 3.1%, Ghana – 2.7%, and South Africa with 1.8% growth. Some of the factors considered are economic diversification, expansion and reform efforts, industrialization, favourable investment climate and so on.?

Per Capita Income (PCI) growth in several African countries like Egypt and South Africa shows potential convergence with established markets, while countries like Ethiopia and Rwanda are also on the path to having PCI growth rates of 6% – which significantly surpasses the global average of 2%.?

Generally, Africa’s emerging economies present exciting opportunities to global businesses for expansion in retail and distribution, due to its oil reserves, natural resources, human resources, entertainment and creative industries, and a thriving entrepreneurial culture. At the forefront of these developing economies and thriving entrepreneurial cultures are women.?

Although many African countries are rich in natural resources, Sub-Saharan Africa faces one of the most challenging economic environments, with high rates of poverty, poor standard of living, inflation and food insecurity. Yet, amidst these challenges, the continent is poised for substantial growth and has been highlighted as the next big market. This means that Africa has the potential to be a key player in the global marketplace.?

We can see this already playing out in many countries. Africa boasts of a youthful population with about 60% of Africans under the age of 25. It is also home to several emerging economies like South Africa, Nigeria, Egypt, Angola, Tanzania, Ghana, and so on, recognized by international organizations for their growing economic strength. The good news is that at the forefront of these developing economies are women contributing their quota and playing a pivotal role in boosting the economies of African countries.?

Women and Emerging Economies

From agriculture to science and tech, entertainment, fashion, health, and many other sectors, women play a pivotal role in ensuring the growth, development and stability of nations’ economies. Globally, women contribute 37 percent of the global GDP, and Africa has the highest percentage of women entrepreneurs in the world with 25.9% of women in the process of starting or managing a business in sub-Saharan Africa. So across sectors, countries and continents, women are pulling their weights and playing critical roles in ensuring the stability and growth of our economies.? Let’s see some of the ways women are doing this.

In agriculture

Agriculture, in Africa, is one of the most important economic sectors, accounting for about 35% of Africa’s GDP and providing a source of livelihood for more than 50% of our population. Now, as of 2023, women make up more than half of our agricultural workforce – contributing their skills, expertise and labour to the economy. African women are the backbone of small-scale agriculture – from that woman who plants Ugu, tomato and Okro at her backyard and then sells them at the market, to the woman who has a cocoyam farm and does interstate deliveries, to the really big women owned Agribusinesses like Reelfruit who have a fully-functional company processing and distributing locally-grown fruits, these women are not just feeding their families but also contributing to food security and economic growth.

In the workforce?

If you look around you in today’s world, the conversations about women and the workforce have tilted heavily towards women working, climbing the career ladder and being on boards and management. In 2023, there were estimated to be approximately 3.4 billion people employed worldwide – two billion were male, and 1.3 billion were female. This means that women account for 47.7% of the global workforce. So, women are working, paying taxes, leading companies, improving sectors, and making policies that develop our economies.

In entrepreneurship and SMEs

Did you know that women make up 58% of Africa’s self-employed population and are more likely to become entrepreneurs than men? Okay, now you know! This data implies that through these small and large-scale businesses, women can provide opportunities for more women at different sectors and levels, thus driving women empowerment and income equality. The significance of this is that:

• Women are contributing to the economic landscape and increasing the GDP across countries.?
• Women are contributing to the diversification of the economy. From skitmakers to content creators, influencers and industries like fashion, makeup, and so on, female-led businesses are likely to ditch traditional industries and operate in diverse sectors.?
• Many women-led SMEs are also addressing challenges at the local level. Many SMEs are community-focused and are solving problems at even grassroots level. (I’d like to add how HerVest is doing this)?

So that female-owned business that started in a kiosk and has since moved to a small shop and then a big supermarket is also boosting the economy of the country and continent at large.

While these show women’s diverse contributions to boosting our economy, it is still a teensy fraction of women’s (untapped) potential.

In the Stanford Social Innovation Review , Anu Madgavkar, Kweilin Elingrud, and Mekala Krishnan say that women could add as much as $28 trillion or 26 percent to annual global GDP in 2025, if they were to participate in the economy identically to men. It is even better in Africa. In a best case scenario, Africa could add $316 billion or 10 percent to its GDP by 2025, if we advance women’s equality. That is the power of gender parity. By consciously dismantling existing barriers and actively promoting economic gender parity and inclusion, we can unlock a new level of economic growth, innovation, and societal well-being.??

Every unpaid labour counts!

Perhaps one of the most intense debates, particularly on social media, is whether or not stay-at-home wives are “just eating and sleeping and doing nothing.” The International Labour Organization (ILO) estimates that unpaid care and domestic work by country is valued to be 10–39% of GDP. It has also been noted that in some economies, unpaid care can contribute more to the economy than the manufacturing, commerce or transportation sectors. Imagine if we paid women for every washed plate, childcare, home care, and every other support they offer??

What’s hindering economic gender parity?

Social beliefs, culture and customs are some of the biggest barriers to economic gender parity across African countries. From the family, to the classroom, to the workplace – society’s belief about who a woman should be, whether or not she should earn, how she should aspire, and so on hinder women’s economic progress. Let’s quickly explore some ways women are being stunted, economically.?

• As of 2020, only 15% of women in Africa had equal inheritance rights as men. This means that, compared to their male counterparts, the other 85% are already at a disadvantage in terms of building wealth and accessing resources. That’s why in my published book Stripped, I not only emphasised the importance of African women building generational wealth, but also included nuggets on how to build this.
• From gender pay gap to harassment, discrimination against women in the workforce has led to more restricted options for paid work and fewer opportunities in management. 58% of women around the world report experiencing gender discrimination in the workplace, and 35% of working women were paid below minimum wage in Africa. This means more women live in multidimensional poverty, compared to men, and find it difficult to attain financial stability.
• Women in emerging economies also face barriers including limited access to credit, markets, economic resources and lower financial literacy levels, especially on account of lower levels of education. To bridge this gap, we must strive to combat harmful societal norms and beliefs. Enacting strong legal frameworks and policies that guarantee women’s equal rights to fair wages in our companies is crucial. Finally, it’s important to encourage and boost financial literacy among women; it’s one reason we’re pioneering inclusive finance for the African woman at HerVest . By addressing these issues, we can create a future where women have equal economic opportunities and can contribute better to the continent’s economic growth.