Inclusive African tech start-ups would yield better ideas, results
Research shows that if women and men participate equally as entrepreneurs, global GDP could rise by approximately three to six per cent. FILE PHOTO | NMG
Africa’s technology start-up scene is vibrant—and growing fast. There are currently over 640 active technology hubs across the continent, and according to Partech Africa, start-ups raised $1.163 billion through equity funding in 2018—a 108 per cent year-on-year growth. Topping the list are fintech start-ups, who raised $132.75 million in 2018—enjoying 39.7 per cent of all funding.
Despite this momentum, however, there’s a concerning trend: Globally, women-led start-ups only receive two per cent of all venture capital—and the picture within enterprise tech is dimmer. Additionally, of all start-ups, only 22 per cent are founded by at least one woman. Africa-specific data is lacking, but sources suggest only nine per cent of start-ups have women-leaders, and female-led South African start-ups receive only 4.5 per cent of all funding.
