Africa occupies the top three places in the Mastercard index for the highest concentration of women entrepreneurs in the world

Press releases of Thursday, January 14, 2021

Source: Mastercard Incorporated

01/14/2021

The fourth edition of the Mastercard Index of Women Entrepreneurs examines progress in 58 economies, representing 80% of the global female workforce

Uganda tops the MIWE benchmark, while Botswana ranks second and Ghana ranks in the top three

Research shows COVID-19 has left a disproportionate impact on women entrepreneurs around the world

The Mastercard Women Entrepreneur Index 2020 (MIWE) again ranked Uganda (39.6%), Botswana (38.5%) and Ghana (36.5%) among the top three economies in the world with most women business owners.

The benchmark of the index is calculated as a percentage of total business owners, and all three countries have increased their percentages since last year (2019).

Now in its fourth year, MIWE highlights the vast socio-economic contribution of women entrepreneurs across the world, as well as information on the factors that motivate and hinder their advancement.

Through a unique methodology, drawing on publicly available data from leading international organizations such as the Organization for Economic Co-operation and Development (OECD) and the International Labor Organization, MIWE 2020 includes a global ranking advancement of women in business in the pre-pandemic period. conditions in 58 economies representing nearly 80% of the global female workforce. This includes eight countries in sub-Saharan Africa (Angola, Botswana, Ethiopia, Ghana, Malawi, Nigeria, South Africa and Uganda).

All but one (Botswana) of the Sub-Saharan African countries captured in the report showed improved MIWE scores since the last edition. South Africa posted the strongest growth with an increase of 7% from [60.2 score to 64.4].

However, Botswana has also increased the number of female entrepreneurs since last year (36% in 2019 to 38.5% in 2020), which has helped the country to rank second globally and move Ghana which now comes third.

The results also indicate a strong representation of women entrepreneurs in Malawi, Angola and Nigeria, despite the economic and social challenges their entrepreneurial ecosystems face.

According to the report, high scores are fueled by a low fear of a business going bankrupt, a lack of alternative income sources and a keen commitment to contribute to their communities.

The report demonstrates that high esteem for risk taking, innovation, individuality and creativity in entrepreneurship is widespread in Uganda, Nigeria and Angola.

The report also notes the disproportionate impact of the COVID-19 pandemic on female entrepreneurs around the world, with 87% saying they have been negatively affected. Overrepresentation in the sectors hardest hit by the economic recession, the pronounced digital gender gap in an increasingly virtual world, and growing pressures from childcare responsibilities are just a few factors that have made particularly vulnerable women.

In Ghana, for example, a sectoral breakdown reveals that a large proportion of women-owned enterprises (85.1%) operate in heavily affected sectors compared to 50.5% for men. In Uganda, 61% of small businesses run by women have failed to generate income even as lockdowns have been relaxed.

“Our findings invite us to consider the cost of untapped potential among women as contributors, not only in business and society, but nationally and globally, as we chart a course for post-COVID recovery. -19 across Africa.

This is all the more important as more women-owned businesses are likely to be affected by the pandemic, making support through incentives, necessary tools, mentoring and digital inclusion platforms even more urgent. .

At Mastercard, we continue to partner with leading organizations in Africa and around the world to create secure and accessible digital payment solutions for small women-owned businesses across Africa, ”said Ifeoma Dozie, Director of Marketing and Communications, Sub-Saharan Africa, Mastercard.

Upcoming opportunities

Despite the obvious challenges, the report highlights a number of opportunities for women in the COVID-19 era, particularly in online shopping and digital commerce. These were supported by Research Mastercard.

A recent study by Mastercard revealed the exponential growth of e-commerce in Africa – 81% of respondents in Nigeria, 72% in Tanzania, 68% in Ivory Coast and 79% in Kenya and Ghana saying they have done more shopping online since the start of the pandemic.

As the pandemic presents new business opportunities for women, especially in terms of online shopping and services, ensuring access to technology or digital solutions, affordable data and modern business resources will enable more women to be successful in business.

The MIWE report is just one part of Mastercard’s larger mission to advance women entrepreneurs and small businesses. In 2020, Mastercard expanded its commitment to financial inclusion worldwide, committing to bring a total of 1 billion people and 50 million micro and small businesses into the digital economy by 2025.

As part of this effort, a direct focus will be on providing 25 million women entrepreneurs with solutions that can help them grow their businesses, through a range of initiatives that intersect with funding, mentoring and business development. inclusive technologies.

Download the Mastercard Index of Women Entrepreneurs 2020 report and additional resources here. >