In boardrooms and development circles alike, gender inclusion is often discussed as a moral imperative. And it is. But in Sub-Saharan Africa, it’s also a massive economic opportunity that remains painfully underleveraged.
Women in Africa are not waiting for permission to lead. They already run a quarter of all businesses on the continent. According to the Women Entrepreneurship Report, the female entrepreneurship rate in sub-Saharan Africa is 25.9% of the female adult population, meaning that one in four women starts or manages a business. In agriculture, retail, and services, women entrepreneurs are building resilient companies and fueling household incomes. But here’s the catch: they’re doing it with scraps.
Women receive less than 2% of startup capital in Africa. Not because their ideas are less viable, but because our financial systems weren’t built with them in mind. Women are often viewed from a perspective of risk rather than opportunity. At M-Kyala Ventures, we’ve seen this firsthand, and we believe it’s time for a rethink.
A System Built for Someone Else
In 2022, our team spoke with 90 female entrepreneurs in Kenya, Uganda, and Tanzania. What we heard was clear and consistent: financial products are ill-suited to the realities of women-led businesses. Banks demand collateral women often don’t have. Loan officers hold gender biases. Investment terms are structured around high-growth tech startups, while many women-led enterprises grow steadily and sustainably, not in hockey-stick curves.
This disconnect is why we launched M-Kyala Ventures: to bridge the gap between finance and gender inclusion, and to show that gender-smart investing is not just ethical, it’s profitable.
What Works: From Toolkits to Tech
We’ve worked with banks and lenders to co-develop gender-smart lending strategies. With partners like USAID and the Aspen Network of Development Entrepreneurs, we’ve rolled out toolkits that help financial institutions reach and retain more women borrowers.
We’re also backing women in the green economy, supporting climate-smart enterprises across East Africa with funding, acceleration, and technical support. These women aren’t just running businesses; they’re building climate resilience in their communities.
Meanwhile, digital tools are unlocking new frontiers. In Kenya, fintechs like M-KOPA are enabling women to acquire smartphones through micro-payments. With that device, a woman gets access to mobile money, credit history, and marketplaces. That’s not just convenience, it’s financial liberation.
Funding that Fits
To truly unlock women’s economic potential, we must move beyond the binary of grant vs. equity. Women often prefer familiar structures, like revenue-based financing or low-interest loans. They’re not risk-averse; they’re risk-conscious.
We must also fund differently. That means blending capital, to de-risk investments, so private capital can flow more confidently into women-led ventures. It means offering guarantees, milestone-based disbursements, and capacity building alongside capital.
At M-Kyala Ventures, we’ve mobilised over $1 million to support women entrepreneurs, and we’re just getting started. Our goal is to impact over 1 million women and girls by 2030, not only through one-off programs, but by shifting the system.
Elevating the Ecosystem
This isn’t a one-player game. Governments must step up with gender-responsive SME policies. Investors must move beyond checklists to actual gender-lens strategies. Accelerators must design for inclusion, offering women not just a seat, but a microphone, funding and mentorship. And development partners must stop funding around women, and start funding through them.
We know what works: community-based finance models. Gender-integrated business support. Digitally inclusive credit systems. Local partnerships rooted in trust. The challenge is scale, and the courage to act systemically.
This Is the Moment
The future of Africa’s economy is female-led. It’s time our funding models caught up. Let’s stop seeing women as “underserved” and start recognising them as underinvested powerhouses of innovation, resilience, and growth.
At M-Kyala Ventures, we’re building that future. If you’re ready to build it with us, let’s talk.
Written by Ashley Mutiso