Nairobi, Kenya —
Increasing women’s participation in Africa’s formal workforce could add about $287 billion to the continent’s economy by 2030, boosting GDP by 5 percent, according to a report commissioned by the Mastercard Foundation.
The report, “Young Women in Africa: Agents of Economic Growth and Change by 2030,” was prepared in collaboration with consulting firm McKinsey & Company. Released last week, the report explores the impact, challenges and contributions of women in the African workforce.
Young women make important contributions to African economies, but their role is on the decline: Women’s contribution to Africa’s GDP fell from 18 percent in 2000 to just 11 percent by 2022, the report said.
Margherita Bagulo is one of the millions of women in Africa who are employed and contributing to economic growth. She works as a customer service representative for a company in Ghana. She says her company promotes gender equality and that women fight for their jobs.
“I’m lucky to be in a place where gender isn’t really an issue,” Bagro says, “and that’s great because we have the same opportunities as the men. And it gives us the opportunity to assert ourselves and improve ourselves to compete on the same level as the men.”
FILE – A woman works at a women’s clothing store in Benghazi, Libya, June 19, 2021.
In Namibia, despite government policies aimed at increasing women’s participation in the economy, the female participation rate rose just two percentage points over five years to 42 percent, according to the report.
The report finds that 10 countries in East and West Africa could achieve faster economic growth if they prioritize gender equality.
However, persistent barriers continue to exclude many women from the workforce.
Kenyan entrepreneur Waku Mureithi says family commitments meant she couldn’t continue with her hair care products business.
“Business is hard for both men and women, but I think it’s even more of a challenge for women because when you look for business opportunities, you sometimes trade sexual services in exchange for work,” Mureithi says. “But for me, the biggest challenge was balancing being a mother and father with being an entrepreneur. I was always busy with meetings and felt like I was failing at parenting.”
Mureithi returned to university to further her studies in order to improve life for herself and her family.
Samuel Nyandemo, an economics lecturer at the University of Nairobi, said more girls and women were enrolling at university to improve their chances of joining the male-dominated workforce.
“Their jobs are mostly in the hospitality industry and some of them are in management roles,” he says. “Either way, we are seeing an increase in their enrolment in universities, which means that in terms of job skills, they are acquiring a lot of job skills that will enable them to take the lead in most managerial roles in African economies.”
FILE – A woman counts Moroccan banknotes at a vegetable market in Casablanca, Morocco, June 29, 2017.
The MasterCard Foundation says that private-sector initiatives, such as investing in after-school care led by young women, could create 3.2 million jobs. Researchers say women also need government-funded initiatives to expand childcare facilities and improve childcare efforts, and the private sector can help by providing technical assistance, resources and low-interest loans.
The report found that while at least 26 percent of girls complete secondary education, unpaid care work means 35 to 40 percent of women are unable to find work.
In 2021, it was reported that 66% of women did not have access to a bank account, while only 13% and 16% of men had access to formal loans.
Women’s limited access to financial services is blamed on the types of businesses they run being seen as lower paying and less stable in income.
Nyandemo said the government needed to create programmes that would make it easier for women to participate in the economic sector.
“We need affirmative action to lead the way on the gender equality front,” he said. “We need to give women more opportunities, empower them economically and politically, and invest heavily in training in different small businesses. We need to equip women with entrepreneurial and management skills.”
The MasterCard Foundation will invest $360 million to help more than 70,000 young women and girls complete their education, start their own businesses and find career opportunities.
