Tech empowers female entrepreneurs
How digital payments empower female entrepreneurs in Africa
Introduction
In Africa’s informal economy, female entrepreneurs play a critical role as both business owners and primary providers for their families. However, these women face unique barriers in cash-dominated economies, where accessibility, security, and financial autonomy are often limited. Fintech platforms are changing this landscape by providing women with safer, more accessible financial solutions that support business growth and promote gender equity. Here, we explore the ways Fintech empower female entrepreneurs across the continent, offering security, financial access, and business tools tailored to their needs.
Common sectors for female entrepreneurs in Africa’s informal economy
Female entrepreneurs in Africa’s informal economy engage in a variety of industries, often choosing sectors that are accessible, flexible, and require minimal startup costs:
Retail and market trade: Many women sell goods such as food, clothing, and household items at local markets, often serving as the primary vendors in these spaces.
Agriculture and food processing: Female entrepreneurs frequently manage small farms or process agricultural products, including selling crops, poultry, and preserved foods.
Crafts and artisanal work: Handcrafted goods like textiles, beadwork, and woven baskets allow women to use traditional skills for local and tourist markets.
Food and beverage services: Women often operate food stalls, cafes, or street food businesses, especially in urban areas.
Hairdressing and beauty services: Beauty services, such as hairdressing and nail salons, are popular and often require minimal training or setup.
Textiles and clothing: Tailoring, dressmaking, and selling fabrics are common, providing custom clothing and mending services to local communities.
Childcare and education services: Women often provide informal childcare and tutoring, especially in communities with limited access to formal childcare.
Financial services (ROSCAs): Many women manage or participate in rotating savings and credit associations (ROSCAs), allowing members to pool resources and access funds on a rotating basis.
These business activities reflect the resilience and adaptability of women in Africa’s informal economy, where they provide essential goods and services to their communities despite limited access to formal financial resources.
Reducing barriers to financial access
Traditional banking systems remain largely inaccessible to many women in Africa, particularly those without formal employment or necessary identification. According to the World Bank, women in developing regions are 20% less likely than men to have a bank account, making financial independence challenging. Fintech platforms, however, provide a solution by enabling financial access through mobile phones—devices that 75% of adults in Sub-Saharan Africa now own, as reported by GSMA.
By providing a digital entry point to financial services, platforms like Blipply, Vooma, M-Pesa, and Airtel Money enable women to manage their finances independently. This access allows female entrepreneurs to manage money securely, reinvest in their businesses, and access critical financial services without needing to visit a bank branch.
Enhancing safety and reducing cash-handling risks
Handling cash presents safety risks for female entrepreneurs, particularly in busy or public environments. Traveling with cash, whether to purchase supplies or make deposits, increases vulnerability to theft. Digital money mitigate these risks by allowing women to complete transactions securely from their phones, reducing the need for cash handling.
The International Finance Corporation (IFC) notes that digital payments improve safety by minimising cash reliance, allowing women to operate their businesses with greater confidence. Digital wallets also provide a secure record of each transaction, making it easier to manage finances without the physical risks associated with cash.
Building financial histories for access to credit
A significant challenge for female entrepreneurs is the lack of a formal financial history, which limits their ability to secure loans. Digital payments address this gap by building a documented transaction history that can demonstrate creditworthiness to potential lenders. According to the World Bank, digital financial records are essential for financial inclusion, enabling women to qualify for loans and credit products that support business expansion.
This is particularly impactful for rural female entrepreneurs involved in agriculture or crafting, who may have previously been unable to access credit. Through platforms like Blipply, detailed transaction histories provide a foundation for a credit profile, opening opportunities for microloans and other forms of financial support. With access to tailored loans, rural female entrepreneurs can purchase materials, upgrade equipment, and invest in their business growth.
Supporting gender equity and economic empowerment
Digital payments not only provide practical benefits but also support broader social objectives, such as gender equity. In many African countries, women take on the responsibility of providing for their families, and access to secure financial tools enables them to better fulfil this role. A study by the United Nations on economic empowerment underscores that financial independence is crucial for gender equity, allowing women to contribute meaningfully to their households and communities.
According to the McKinsey Global Institute, improving women’s financial inclusion could add $12 trillion to global GDP by 2025. Fintech platforms like Blipply empower women to participate fully in the economy, fostering gender equity and contributing to more inclusive economic development across Africa.
Business tools and financial literacy for long-term success
In addition to digital payments, platforms like Blipply provide educational tools that help women improve financial literacy and business management. These resources are invaluable for women who may not have had formal financial education, particularly in rural areas. Digital tools allow women to manage cash flow, set growth goals, and make informed business decisions, all of which contribute to long-term business sustainability.
A report from the Federal Trade Commission (FTC) underscores that financial education is a powerful tool for poverty reduction. With features like in-app financial statements, credit score building, and revenue tracking, Blipply equips female entrepreneurs with the knowledge and tools they need to manage their businesses successfully and confidently.
Blipply’s role in empowering female entrepreneurs
Platforms like Blipply play an essential role in supporting female entrepreneurs across Africa’s informal economy. By offering secure, accessible financial and selling tools, Blipply allows women to manage their businesses safely, reach more customers, build a financial history, and access credit for growth. Through digital records, financial literacy resources, and a cash-free transaction system, Blipply not only enhances business security but also promotes gender equity and economic empowerment.
As digital payments continue to reshape financial access across Africa, Blipply aligns with global efforts to empower women economically, creating a more inclusive and equitable future. For further reading on digital finance and gender equity, explore resources from the World Bank, IFC, and UN. Digital payment systems are reshaping opportunities for female entrepreneurs across Africa, enabling them to lead stronger, more financially secure lives.
