Persisting Inequality in Africa: Female Entrepreneurs Continue to Receive Only a Tenth of All Funding Dollars
In the dynamic world of African tech, a persistent issue continues to loom: the gender funding gap. Women founders still only receive 1 in 10 dollars in funding, a statistic that has remained stagnant in the ecosystem.
However, there are signs of progress. VC firm Janngo Capital, for instance, has invested over $5 million in innovative startups, with an impressive 56% of its portfolio companies being women-led. Founded by Nicolas Cappelle, Janngo Capital has also invested over €6 million in companies with female founders.
The representation of women in tech leadership, unfortunately, continues to dwindle. In the tech workforce, women account for just 23%, a figure that reflects a similar trend in tech leadership.
Despite these challenges, Africa has the highest number of women entrepreneurs in the world, with over a quarter of all businesses being either started or run by women. This statistic, however, does not translate into equal representation in the tech startup ecosystem.
According to the Africa Venture Pulse report by Briter, most venture capital continues to flow to male-led startups. In 2025, approximately 75% of all funding raised went to male-led startups, while only 10% went to companies with at least one female founder.
However, there are initiatives working to bridge this gap. Aruwa Capital and Alitheia IDF, for example, have growing portfolios packed with female entrepreneurs. Accelerator FirstCheck Africa offers early-stage VC investments in African tech startups with at least one female founder or co-founder.
The gap in representation can be attributed to factors such as the startup pipeline, lack of funding for scaling, and social and institutional biases. It's crucial to address these issues to ensure a more balanced and equitable tech ecosystem.
In 2024, women-led startups raised only $48 million, representing a mere 2% of total VC funding. This statistic underscores the need for more concerted efforts to close the gender funding gap.
Africa forfeits an estimated $95 billion in economic potential due to gender inequality. Closing the gender funding gap in the tech ecosystem could be a significant step towards unlocking this potential.
As the tech industry continues to grow in Africa, it's essential that women are given equal opportunities to thrive. The Moonshot event by our website is back in Lagos on October 15-16, providing a platform for women in tech to connect, learn, and grow.
Let's work together to create a more inclusive and equitable tech ecosystem in Africa.
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