In Africa’s rapidly growing tech scene, women are still fighting for their place at the top. A recent report has shed light on the significant gender gap in leadership within African tech startups, highlighting both progress and the considerable challenges that remain.
According to the “Diversity Dividend: Exploring Gender Equality in the African Tech Ecosystem 2024” report, only 11.1% of startups across the continent are led by women CEOs. This statistic is concerning, given that the tech industry in Africa is expanding at an unprecedented rate. Despite this growth, women are still largely underrepresented in leadership roles.
The report, published by Disrupt Africa in collaboration with Madica, a pre-seed investment program, examined 2,600 African tech startups. While there has been some progress—17.3% of startups have at least one female co-founder, compared to 14.6% in the previous edition—the steps forward have been small. In the first edition of the report, only 9.6% of startups had a female CEO, compared to the current 11.1%. While this is a positive shift, it is clear that women are still facing significant barriers to reaching leadership positions.
Gabriella Mulligan, co-founder of Disrupt Africa, emphasized that while the progress is noteworthy, it’s far from enough. “The sector needs to move more quickly toward gender parity if it wants to scale and succeed,” she said. This sentiment echoes the frustration many feel about the slow pace of change, especially in an industry that prides itself on innovation and forward-thinking.
One of the most encouraging findings from the report is the increase in the number of startups with female founders. As of June 2024, 483 startups in Africa had at least one female co-founder, up from 350 in 2023. This growth, while modest, indicates that more women are taking the entrepreneurial plunge and contributing to the continent’s tech ecosystem.
The report also highlighted the countries leading the charge in gender diversity. Zambia emerged as the most diverse nation in terms of female representation at the founder level, with 24% of its startups having female founders. Senegal follows closely with 23.4%, and Rwanda with 22%. Countries like Nigeria, Kenya, and Ethiopia also showed promising numbers, with nearly 21% of their tech startups having female founders. Tunisia and South Africa had slightly lower percentages but were still notable, with around 20% and 18%, respectively.
However, the gender gap becomes even more apparent when it comes to fundraising. While the total amount of funding raised by startups with at least one female co-founder has increased to 16.6% in 2023, up from 9.3% in 2022, the numbers for female-led startups are still far from equal. In 2023, only 8.2% of the total funding went to female-led startups, compared to just 2.8% the year before. This means that despite the increasing presence of women in the tech startup space, they still face significant challenges in securing the capital they need to grow their businesses.
Between January 2022 and June 2024, African tech startups raised a staggering $6.2 billion. However, only $747 million of this—just under 12%—went to startups with a female co-founder. The situation is even more dire for female CEOs, with only 4.6% of the total funding going to startups led by women.
Geographically, Nigeria continues to be the most attractive country for investment, especially in the fintech sector, which leads in terms of funding. This trend underscores the need for more targeted efforts to ensure that female-led startups in these high-growth sectors receive their fair share of investment.
Emmanuel Adegboye, head of Madica, pointed out the persistent challenges that women face in the tech industry. He noted that the findings of the report are sobering and reflect the reality that while there is much discussion about gender equality, the actions needed to achieve it are lagging behind. “After all is said and done, a lot more is being said than done,” he remarked, capturing the frustration of many advocates for gender equality in the industry.
The report also explored the role of venture capital (VC) in supporting female-led startups. Between 2023 and mid-2024, African startups received investment from 575 VC firms. Interestingly, 44% of African VC firms had female leaders, which is a positive sign. The U.S. was the second most active investor, with nearly 50% of its VC firms having female leaders. European VC firms also showed strong female representation, with 52% having at least one woman in a leadership position.
However, the report cautions that having a single woman on a leadership team is not enough to achieve true gender equality. Real progress, it argues, would mean having leadership teams where men and women are equally represented.
Despite the challenges, there is hope for the future. The continued increase in female founders and the slow but steady rise in female CEOs shows that change is happening. However, for Africa’s tech industry to truly thrive, it must embrace gender diversity at all levels. The path forward requires not just words but action—an action that ensures women have the same opportunities as men to lead, innovate, and succeed in the dynamic world of African tech startups.
Source: The Guardian
