June 30, 2014

Female entrepreneurs are leading the way in Africa

Africa has the highest growth rate of female-run enterprises in the world, according to recent research by the World Bank.

The new data show that around 63% of African women in the non-agricultural sectors are self-employed in the informal sector, more than twice the average worldwide rate.

This not only reflects a notable shift in the continent towards female independence, but supports theories that encouraging self-employment can hugely improve economic growth.

A report this year by Goldman Sachs noted that helping women to join the labor force, especially through access to credit, “supports the development of human capital, which in turn will fuel economic growth in the years ahead”. (See our article on self-employment and poverty in developing countries).