Women-Led Startups Get Only 2.2% of VC Funding in Africa

A report highlights that women-led startups in Africa account for just 2.2% of the total venture capital funding, which amounted to approximately $3.2 billion. Emelia Sundai Edet, head of a venture platform, emphasized that despite the clear market demand and proven efficiency of female-led businesses, they struggle to secure funding.

A study by the Boston Consulting Group noted that startups with female founders generate $0.78 in revenue for every dollar invested, compared to $0.31 for male-led teams. The report indicates that male-founded teams attracted 90% of the capital raised during this period.

Edet pointed out that the existing funding imbalance is exacerbated by perceptions of women-led businesses as high-risk, particularly in sectors like retail and agriculture. She urged for a shift in investment strategies to close the funding gap, which could unlock significant economic dividends across the continent.