The Africa Female Founders Collective (AFFC), a pioneering initiative spearheaded by Ibijoke Faborode, the Founder and CEO of ElectHer, has officially commenced operations with a clear mission: to bridge the funding gap that female entrepreneurs face in Africa’s burgeoning business ecosystem. This ambitious project not only underscores the critical role women play in business and leadership but also aims to dismantle the barriers that hinder their full participation and success in the economy.
Despite the growing recognition of women’s entrepreneurial talents and their potential to drive economic growth, the disparity in funding between male and female founders remains stark. According to insights from Africa: The Big Deal, a prominent data analytics firm, startups led solely by men or with all-male founding teams secured a whopping 85% of all investment capital. This figure jumps to 98% when considering gender-diverse teams that include at least one male member, highlighting the substantial challenges female entrepreneurs face in attracting financial backing.
The reasons behind this significant funding gap are multifaceted. Blessing Adesiyan, founder of Caring Africa and collaborator with Faborode on the “Night With Nigerian Female Founders” event—AFFC’s inaugural gathering—points out the societal expectations placed on women as primary caregivers. This often limits their visibility and accessibility to potential investors, as women are traditionally expected to prioritize domestic responsibilities over entrepreneurial pursuits.
Addressing this issue requires a holistic approach, including societal support for women in balancing their caregiving roles with entrepreneurial ambitions. Adesiyan advocates for a supportive home environment that enables women to chase their dreams and achieve their business goals without being held back by traditional gender roles.
Ibijoke Faborode believes strongly in the power of collective action. By uniting under the AFFC banner, female founders can access a wealth of resources, including mentorship, networking opportunities, and a supportive community that fosters accountability and inspiration. This collective strength is seen as a key factor in enhancing women’s prospects of securing investment and succeeding in the competitive business landscape.
Successful female-led businesses often share certain attributes that appeal to investors. Omotade Alalade, founder of Moobi Baby, emphasizes the importance of having a solid business structure and meticulous financial record-keeping from the inception of the business. These practices not only facilitate operational efficiency but also bolster the founder’s credibility when engaging with investors or financial institutions.
Efe Braimah, managing director of CrossBoundary Advisory, adds that female entrepreneurs must be intentional about their visibility in investor circles, demonstrating competence, and assembling a strong team. These elements, combined with a well-structured business and aligned financials, make a compelling case to potential investors.
Jumoke Olaniyan, Senior Vice President of Business Development at FMDQ Securities Exchange Limited, points out the diverse funding sources available to founders, including the financial market, which offers various financing options tailored to different stages of business growth. She asserts that investors are constantly on the lookout for new, promising investment opportunities.
The launch of the Africa Female Founders Collective marks a significant milestone in the journey toward gender equality in the business world. By tackling the funding disparities head-on and providing a platform for female entrepreneurs to thrive, AFFC aims to catalyze a transformative change in Africa’s economic landscape, one where women’s contributions are fully recognized and valued. This initiative not only empowers female founders but also paves the way for a more inclusive, equitable, and prosperous African economy.
