Strategies for growing the pipeline of women tech founders in Africa.

Who is a woman tech founder?

A woman tech startup founder/techpreneur is a female entrepreneur who establishes and leads a technology-based startup company as a solopreneur or in partnership with one or more co-founders. The term woman tech founder refers to women who are instrumental in conceiving innovative solutions and businesses that leverage technology to address specific needs or problems. They are responsible for the strategic direction, management, and growth of their startups, often taking on a multifaceted role that encompasses product development, fundraising, marketing, and team building.

Woman tech startup founders are entrepreneurs who take the initiative to create and operate technology-driven businesses. They engage in the process of identifying opportunities, securing resources, and managing risks.?

These women founders are typically driven by the desire to innovate and introduce novel products, services, or business models that leverage technology.

The central role of technology in their startups is what differentiates women tech founders from other women entrepreneurs. Women tech founders are entrepreneurs who employ various technologies, such as software, hardware, and digital platforms, to create, deliver, and scale their products or services.

Why do we need tech startups?

In an era defined by rapid technological advancements, the significance of technology startups in shaping the future of nations cannot be overstated. These innovative ventures, often founded by enterprising individuals, have emerged as powerful engines of economic growth, employment generation, and societal transformation. Technology startups are not just disruptors; they are the driving force behind national development. Tech startups play a pivotal role in driving progress, innovation, and prosperity.

Catalysts for Economic Growth: Technology startups are catalytical to stimulating economic growth. They create new markets and revenue streams by introducing novel products, services, and business models. Moreover, startups tend to be more agile and adaptable, enabling them to respond swiftly to market changes and demands. As they scale, they generate employment, thereby reducing unemployment rates and enhancing the standard of living. A thriving startup ecosystem attracts foreign investments and promotes a culture of entrepreneurship, driving economic development.

Innovation Hubs: Technology startups are breeding grounds for innovation. They act as innovation hubs, constantly pushing the boundaries of what is possible. In their quest to solve problems and meet needs, startups develop cutting-edge solutions that can be applied in various sectors, from healthcare and education to agriculture and finance. Technology startups are pioneers, not only creating new technologies but also serving as testbeds for new ideas and concepts that can be applied at the national level.

Improved Quality of Life: National development is not solely a matter of economic growth. It also involves enhancing the quality of life for citizens. Technology startups are instrumental in this regard. They create solutions that address societal challenges, such as access to healthcare, education, and clean energy. Startups working on health tech, for instance, have the potential to revolutionize healthcare delivery, making it more accessible and affordable. Likewise, ed-tech startups are democratising education, providing learning opportunities to a broader demographic.

Digital Transformation: Technology startups are at the forefront of the digital transformation that is sweeping nations worldwide. They develop digital tools, platforms, and services that streamline processes, improve efficiency, and enhance communication. The digitization of services and industries not only boosts productivity but also leads to cost savings. As a result, governments can allocate resources more effectively, thus driving development across various sectors.

Global Competitiveness: In a globalised world, nations that do not embrace technology and innovation risk falling behind. Technology startups play a significant role in ensuring a country's competitiveness on the international stage. They have the potential to disrupt traditional industries, making them more competitive by promoting efficiency and innovation. Moreover, by exporting their innovations and technologies, startups can bolster a nation's trade balance and create new opportunities for global economic partnerships.

Technology startups are not just entrepreneurial ventures; they are architects of national development. Their ability to drive economic growth, foster innovation, improve quality of life, lead digital transformation, and enhance global competitiveness makes them indispensable to a nation's progress. Therefore, fostering a conducive environment for technology startups through policies that promote innovation, access to funding, and support for entrepreneurship is not just a wise economic strategy; it is an investment in the future of a nation. As the world continues to evolve in the digital age, the role of technology startups in national development will only become more pronounced.

Why do we need women tech-founders?

We need women tech startup founders for a multitude of reasons, as their presence and active participation in the technology entrepreneurship ecosystem bring about numerous benefits and positive outcomes. Here are several compelling reasons why women tech startup founders are essential:

Diversity and Inclusion: Women tech founders contribute to greater diversity and inclusion in the tech industry. A diverse workforce and leadership that is representative of the population that the industry serves enhances creativity, innovation, and problem-solving, which are essential in technology and startups.

Fresh Perspectives: Women bring unique perspectives, experiences, and insights to the tech sector, leading to the development of more well-rounded and comprehensive solutions. Their diverse backgrounds and experiences will lead to more inclusive products and services.

Addressing Unmet Needs: Women founders are often more attuned to identifying unmet needs and challenges that might be overlooked by male-dominated teams. Their startups can address issues related to women's health, education, and social well-being.

Role Models: Women tech founders serve as powerful role models for young girls and aspiring female entrepreneurs. Their success encourages more women to consider careers in technology and entrepreneurship.

Economic Growth: Women-led startups contribute significantly to economic growth. A more diverse entrepreneurial ecosystem can lead to increased job creation and wealth generation, benefiting the entire economy. Increasing women’s involvement in techpreneurship is a key strategy for poverty eradication as women make up a large portion of the world’s poor.

Innovation: Women have historically been at the forefront of groundbreaking innovations in various fields. Their involvement in tech startups will lead to the creation of novel technologies and solutions.

Investment in Human Capital: Encouraging and supporting women tech founders is an investment in human capital. It taps into the talent, skills, and creativity of a significant portion of the population.

Reducing Gender Gaps: The participation of women in tech entrepreneurship helps reduce gender disparities in income and economic opportunities. This, in turn, fosters more equitable and inclusive societies.

Access to New Markets: Women tech founders often bring products and services to market that cater to underserved and emerging markets, expanding the reach of technology to previously neglected demographics.

Competitive Advantage: Diverse teams and founders often have a competitive advantage in understanding and appealing to a broader range of customers. This can lead to greater market reach and competitiveness.

Social Impact: Many women-led tech startups are driven by a strong sense of social responsibility. They focus on creating tech solutions that can positively impact communities, promote sustainability, and address social issues.

Resilience and Leadership: Women tech founders frequently exhibit resilience and strong leadership skills in navigating the challenges of entrepreneurship. Their diverse leadership styles can enrich the entrepreneurial landscape.

In conclusion, the inclusion of women tech startup founders is not just a matter of equity; it is also a strategic imperative. Their presence contributes to more innovative, inclusive, and sustainable tech ecosystems that can drive societal progress and economic development. Encouraging and supporting women in tech entrepreneurship is an investment in a brighter, more diverse, and prosperous future.

The Current State of Women Tech Founders in Nigeria

Sub-Saharan Africa boasts the world’s highest rate of women entrepreneurs, at 27%. The MasterCard Index of Women Entrepreneurs 2017 listed two African countries, Uganda (34.8%) and Botswana (34.6%), as having the highest percentage of women entrepreneurs globally. However, a more in-depth look reveals that in many countries in Africa, most female-led enterprises are small businesses with little opportunity for growth. Also, female entrepreneurs are not evenly spread across the continent. Botswana, Ghana, Nigeria, Kenya, Uganda, and Zambia have disproportionately high numbers.

“Most of these businesses tend to have no employees and have low growth expectations: they are, for the most part, one-woman enterprises oriented to consumers,” CNN reported in 2015. In the technology industry particularly, there are very few women-owned/led start-ups. We need to provide the right incentives and support to help African women unleash their potential in the continent’s burgeoning tech sector.?

African tech’s gender problem is not getting any better, with just 20.2% of 633 funded ventures in 2022 having a female founder, down from 21.5% in 2021. Only 128 of the 633 funded African tech startups in 2022 had at least one woman on their founding team, which is marginally up from 121 in 2021 but still represented a percentage decline to 20.2% from 21.5%

A review of Africa’s leading funding destination reveals that Kenya was the “best” performer when it came to female representation amongst funded ventures, with 26.4 per cent of startups having at least one female co-founder. Morocco was also a relatively good performer, with 25.9 per cent, while South Africa had 23.1 per cent. Tunisia (21.7%) and Nigeria (20.6%) were marginally above average. Ghana (17.4%) and Egypt (13.7%) are underperformers.

In 2020, less than five per cent of global venture capital went to female-led companies, and the trend is negative due to the global pandemic. This under-representation of women plays out as much in Africa as anywhere else. Investors point to a pipeline problem, but female founders cite decision-making bias and a lack of early conviction by investors. Study after study proves that women are right: venture fundraising processes favour male founders from very early on, particularly at the pitch stage. And yet, women are starting more companies than ever.

Challenges to growing the pipeline of women tech founders in Nigeria

African women face several challenges and issues that can prevent them from starting tech companies. These challenges are often a result of a combination of cultural, economic, and social factors. Some of the key challenges and issues include:

Gender Discrimination: Gender discrimination is a pervasive issue in many African societies, which can manifest in unequal access to resources, opportunities, and support for women entrepreneurs. Women may face biases in access to funding, mentorship, and networking.

Lack of Access to Funding: Access to capital is a significant challenge for many African women looking to start tech companies. They often struggle to secure investment due to bias from investors and a lack of female representation in venture capital firms. As a result, many female-led companies are usually bootstrapped, and they prefer bank loans because of the difficulties faced when securing funding. This causes most female-led startups to grow and expand at a slower pace than their male counterparts while tackling other challenges like the inability to attract and hire top talent who would eventually build better products.

Limited Technical Skills and Education: Disparities in access to quality STEM education can affect women's ability to start tech companies. Many African women may not have the technical skills required for techpreneurship.

Cultural and Societal Norms: Deep-seated cultural norms and societal expectations can limit women's freedom to pursue careers in technology and entrepreneurship. Traditional gender roles may discourage women from venturing into male-dominated fields.

Lack of Role Models: The absence of visible female role models in the African tech industry can make it difficult for women to envision themselves as tech founders and leaders. Role models can play a crucial role in inspiring and mentoring aspiring entrepreneurs.

Limited Access to Networks: Building a strong network is essential for success in the tech industry. Women may have limited access to mentorship, networking events, and connections that can help them launch and grow their tech companies.

Access to Technology and Infrastructure: Inadequate access to technology and infrastructure can be a barrier to starting tech companies. Sub-Saharan African women are 37% less likely than men to use the mobile internet - the largest gender gap globally. Many women and girls have also not acquired the necessary skills to participate in the digital space, perpetuating their economic exclusion.

Work-Life Balance: Balancing the demands of a tech startup with family and other responsibilities can be especially challenging for African women. According to the International Labour Organisation (ILO), African women spend 3.4 more time in unpaid care work than men. Unpaid care work is one of the main barriers preventing women from getting into, remaining, and progressing in the labour force.

Legal and Regulatory Hurdles: Navigating the legal and regulatory landscape can be complicated and expensive. Women tech founders often encounter gender-specific legal obstacles or lack access to legal resources.

Mentorship and Support Networks: The scarcity of female mentors and support networks tailored to the needs of women tech founders can hinder their growth and development.

Market Challenges: Women tech founders may encounter gender-specific market challenges, such as bias from potential customers or clients who may prefer to work with male-led businesses.

Despite these challenges, many African women have overcome these barriers and successfully started tech companies. Efforts to address these issues include the establishment of support programs, increased awareness of gender disparities, and advocacy for greater diversity and inclusion in the tech industry. Empowering African women in tech entrepreneurship is essential for fostering innovation and economic growth on the continent.

What is being done to address these challenges, what has worked and what hasn’t?

In the efforts to increase the number of women tech founders in Africa, some strategies have shown promise, while others have faced challenges or limitations. Here's an overview of what has worked, what hasn't, and what more needs to be done:

What Has Worked?

Education and Training Programs: Providing STEM education, coding bootcamps, and tech-related training programs for women has been successful in equipping them with the necessary skills to enter the tech sector. SheCodes is one organisation providing women in African countries with the opportunity to learn how to code for free. SheCodes and several other organizations focus on empowering women to fill any role in the African tech space. The Nigerian Startup Bill and other similar bills on the continent also make provisions for training, capacity, and development programs to empower more women and have them skilled enough to fit into tech roles.

Mentorship and Networking: Mentorship programs and networking opportunities have been effective in helping women tech founders navigate the industry, build connections, and access valuable guidance. She Leads Africa (SLA) is a platform that offers mentorship, funding opportunities, and training for African women entrepreneurs, including those in the tech sector.

Gender-Focused Funding Initiatives: Creating funding opportunities specifically for women tech founders, including venture capital funds and grants, has contributed to increased access to capital. TLcom Capital, through its TIDE Africa Fund II actively addresses the funding gap for the continent’s female tech innovators, exemplified by its investments in top female-led start-ups like Okra and Pula. FirstCheck Africa invests in exceptional founders and diverse teams tackling complex problems in deep markets to build Africa's next great companies

Incubators and Accelerators: Tailored incubators and accelerators have provided women with resources, mentorship, and a supportive ecosystem for their startups. GreenHouse Lab is the first female-focused tech accelerator program in Nigeria with a mission to build world-class, women-led technology companies by empowering and supporting them to grow and scale rapidly in the emerging African market. The ShEquity Business Accelerator (SHEBA) is a 16-week program that provides venture-building and technical support to African female entrepreneurs across the ECOWAS region. #HerFutureAfrica equips young African women with the skills, confidence, and networks to launch technology-enabled businesses that positively impact their communities.

Role Models and Visibility: Elevating successful women tech founders as role models have inspired and encouraged other women to pursue tech entrepreneurship. #HerFutureAfrica published Founding Women, a book of interviews with 20 African female tech entrepreneurs to inspire and provide positive role models to young women and girls beyond the programme.

Research and Data Collection: Gathering data on women in tech entrepreneurship has shed light on the challenges and opportunities, helping shape policies and programs.

To take on the challenge, some tech companies look to employ more women, and venture capitalists seek to invest in female founders. Platforms such as Nigeria’s Pearls Africa, Uganda’s Wazi Vision and Neopenda, Kenya’s eLimu and Flare, and Rwanda’s Kasha have created VC-backed ecosystems to support the cause. Likewise, venture capitalists seek to back more female founders. An increasing number of accelerators – which provide early-stage companies with training, mentorship, and financing – and venture capital firms are now shifting focus to women-led businesses.

As a result of these movements, there has been an increase in the number of women in leadership positions in African tech companies, such as CEOs, CTOs, and founders. This increase though encouraging is not nearly enough to close the gender gap in techpreneurship on the continent.

What Hasn't Worked or Faced Challenges?

A survey of female founders within the African tech startup ecosystem has revealed high levels of discrimination, with respondents reporting negative experiences with customers, employees, and investors, as well as numerous unwanted sexual advances in the workplace. For a group that is already at a fundamental disadvantage given they are routinely denied adequate opportunity, access, and support; discouraged from chasing certain careers due to cultural biases; and deceptively conditioned to believe they can’t cut it despite overwhelming evidence to the contrary, additional obstacles tied to the lasciviousness of superiors need to be urgently and effectively addressed.

Lack of funding remains one of the most significant challenges faced by female founders in the African tech space.? The limited access to funding opportunities leads to a pervasive sense of exclusion. Statistics reveal that a staggering number of 70% of female founders have been disadvantaged or negatively impacted due to their gender when seeking investment from potential investors. ? ?According to Eloho Omamame of TLCom Capital although investors acknowledge that there is a business case for investing in women and diverse teams, they are not doing enough, systematically, to drive change.

What More Needs to Be Done?

The path to empowering African women in tech startups is clear: bridge the gender gap in funding, challenge stereotypes, provide mentorship, and create supportive ecosystems. By embracing these principles, Africa can harness the full potential of its female entrepreneurs, ushering in a new era of innovation, inclusivity, and prosperity for all.

Eliminating Gender Bias: Efforts to eliminate gender bias and discrimination in the tech industry must continue, including awareness campaigns and diversity and inclusion training. Training on gender biases for key stakeholders in the African tech ecosystem should be encouraged to help them realise how their actions and decisions can adversely affect women entrepreneurs.”

Funding Access: More comprehensive measures are needed to address funding disparities, including encouraging inclusive investment practices, and increasing the representation of women in venture capital firms.

Supportive Work Environments: Encouraging companies to create more supportive work environments for women tech founders, including flexible work arrangements and family-friendly policies.

Sexual Harassment Policies: Tech companies need to implement effective sexual harassment policies that will help safeguard female employees and disincentivise sexual predators to provide a conducive and positive environment for all workers.

Cultural Change: Advocacy and cultural awareness campaigns should work to challenge and change traditional norms and expectations that discourage women from pursuing tech entrepreneurship.

Most awareness campaigns target undergraduates and young graduates, however, techpreneurship needs to be presented as a viable career option for girls at a much younger age. Advocacy and awareness need to start as early as basic education and need to involve parents, career counsellors, and religious and traditional leaders.

Infrastructure Development: Infrastructure development and improvements in internet connectivity are vital for levelling the playing field for women tech founders in areas with limited access.

Legal Reforms: Addressing legal and regulatory challenges that disproportionately affect women tech founders through policy reforms and advocacy.

Market Inclusivity: Promoting inclusive and equitable business practices and customer preferences in the tech market.

Collaborative Efforts: Stakeholders should continue to collaborate and build partnerships to create a holistic approach to addressing the challenges women tech founders face.

Efforts to support women tech founders in Africa are gradually making headway, but it remains an ongoing and dynamic process. Continued commitment to diversity and inclusion, along with innovative solutions, is needed to foster an environment where women can thrive in tech entrepreneurship and drive innovation across the continent. More diverse VC boards, programmes to encourage girls to pursue STEM careers, and initiatives celebrating successful women founders would inspire others and foster a more supportive environment for women tech founders. Odunayo Eweniyi, co-founder of PiggyVest says the need to? make the Tech space one where women can thrive (because it’s been designed for so long to cater to men) is something that the whole ecosystem needs to work at.

In conclusion, the inclusion of women tech startup founders is not just a matter of equity; it is also a strategic imperative. Their presence contributes to more innovative, inclusive, and sustainable tech ecosystems that can drive societal progress and economic development. Encouraging and supporting women in tech entrepreneurship is an investment in a brighter, more diverse, and prosperous future.