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Cabinet officials

Investing in Women and Youth Entrepreneurs Crucial for Africa's Growth

Strategic Insights

— 1 min read

Africa's economic growth and prosperity depend significantly on the ability of its entrepreneurs to turn their ideas into successful businesses, particularly women and youth entrepreneurs. Experts attending an event on 'unleashing the potential of women and youth entrepreneurship in the digital age' highlighted the challenges faced by these groups and proposed solutions to promote entrepreneurship in the digital era. They emphasized the importance of investing in skills, resources, and mentoring for these entrepreneurs to drive Africa's growth.

Key Takeaways:

  • Africa's high unemployment rate of 15% particularly affects women and young people, with 60% of Africa's unemployed population being youth.
  • Women and youth-led startups in Africa are numerous, but their economic contributions are limited due to challenges like poor access to finance, training, and technology.
  • The gender gap in internet access in Africa has increased from 20% in 2013 to 33% in 2019.
  • Digital technologies present several entry points to building forward better from the COVID-19 crisis while accelerating progress to achieve the Sustainable Development Goals.
  • A fund to support digitalization, cross-sector partnerships, digital inclusion policies, and gender-specific financial products are specific measures that can be taken.
  • A multi-stakeholder coalition has been started to support women and youth entrepreneurs in unleashing their full potential.
  • Banks should create a special lending criterion for small businesses, and customized mentorship is extremely important to understand what small businesses need to do to survive in a competitive environment.
  • Earmarking a specific portion of public funds for female startups and engaging banks to offer gender-sensitive services are additional proposals put forward by the panelists.
  • The ECA, UNFPA, and BADEA have partnered to host the virtual event and promote entrepreneurship in the digital era.

Statistics:

  • 60% of Africa's unemployed population are youth.
  • Africa's low unemployment rate is 15%.
  • The gender gap in internet access has increased from 20% in 2013 to 33% in 2019.
  • Half a million Ugandans have received health services from Mr. Samuel Mugisha's startup.
  • 70% of startups in Uganda close before their fifth anniversary.

Sources:

  • United Nations Economic Commission for Africa (ECA)
  • UN Fund for Population Activities (UNFPA)
  • Arab Bank for Economic Development in Africa (BADEA)
  • Economic Commission for African Ministers of Finance, Planning and Economic Development

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