By Shatho Babitse
The relationship between African women and the economy is a strange paradox globally. Women work two-thirds of the working hours and produce more than half of the food, but only earn 10% of the total income, have less than 2% of the land, and receive less than 5% bank loans.
According to a recent article by the World Economic Forum, there have been many strategies advocated to harness the potential of the demographic dividend of the world’s fastest growing labour-force, from building suitable infrastructure to supporting globally competitive and labour-intensive sectors to skills training. However, what has been absent from the debate is how best to incorporate women into the equation on Africa’s economic development. Women’s formal ownership of Small & Medium Enterprises (SMEs) currently stands at around one third of all registered SMEs in Africa, a steadily rising number with the potential to boost, pull and drive the continents economic development agenda.
SMEs are the main engines of job creation throughout the continent, estimated to account for over 90% of Africa’s business growth through employment creation, tax contribution, income-generating activities, and Gross Domestic Product contribution. Although there has been tremendous transformation of the SME sector in many African countries in the last two decades, one of the impediments to SME growth has been access to credit, which remains a hurdle for women across Africa.
Addressing the issue should be a priority for governments and regional financier’s such as Development Financing Institutions and the African Development Bank, to run SME development programmes designed to support women in micro, small and medium enterprises. Women’s active economic participation is also crucial and will require the development of both women and young people and their capacities to possess the elements of power that enable them to bring about change in their societies. Policy reform, development of the trade support ecosystem and capacity building are also pivotal contributors towards the realization of Africa’s economic transformation.
As we look ahead into the next 30 years, the combination of women participation in Africa’s economic transformation agenda coupled with growth factors that the continent presents today, will create unrivalled opportunities for economic transformation in the long term.
Photo by Nothing Ahead from Pexels
Shatho Babitse is the founder of Wall Street Lights in Botswana; an innovative company that specializes in lighting design and ambiance enhancement for events. She has previously served as Business Development Executive at Axis Tech, a tech company that specializes in 3D Virtual Reality and VR experiences, where she was responsible for identifying and implementing growth opportunities, development strategies, ensuring profitability and overseeing new marketing initiatives. She is an active member of the Africa Business Jumpstart Community; a platform aimed at promoting business in Africa, and building smart business concepts & entry strategies that make the most of Africa’s trending developments and growth opportunities. A firm believer that we were all born into the opportunity as well as the responsibility to become legendary, Shatho is a proud Alumnus of the TGM Coaching & Mentorship Program; a transformative platform for young aspiring leaders to unleash their full potential, elevate and drive positive change.