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The future of African youth and women in entrepreneurship: Leading Africa to 2030

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Editor's note:

This viewpoint is part of Chapter 3 of Foresight Africa 2025-2030, a report with cutting-edge insights and actionable strategies for Africa’s inclusive and sustainable development in the run-up to 2030. Read the full chapter on women and youth.

Entrepreneurship is the key to unlocking Africa’s potential...young people and women are leading this charge.

As we approach 2030, Africa’s young population stands at the forefront of economic transformation. Youth and women entrepreneurs have had a profound impact on their communities and the continent at large. Their energy, resilience, and creativity are not just changing the landscape of business in Africa—they are driving the realization of the Sustainable Development Goals (SDGs). Yet challenges persist in creating the conditions for entrepreneurs—especially those from marginalized communities—to succeed on the continent. To fully harness their potential, we must focus on empowering youth and women entrepreneurs with the right tools and creating an enabling environment for them to thrive.

Harnessing the power of entrepreneurship

Entrepreneurship has always been at the heart of Africa’s economic engine, with small and medium enterprises providing the bulk of jobs across the continent. Africans have sought employment through entrepreneurial activities across sectors such as farming, crafts, and informal retail. While many are able to embark on this journey without external assistance, many others hit financial, educational, and/or logistical barriers, making entrepreneurship an unlikely option despite the desire to pursue it. However, entrepreneurship is essential to Africa growth. The creation of 10 successful new businesses, for example, has the potential to add 1.4 billion dollars to a country’s gross domestic product and create upwards of 2,400 new jobs. In recent decades, many organizations have looked for ways to minimize these barriers to entrepreneurship so as to enhance economic growth and create employment opportunities on the continent.

As a major component of the entrepreneurship ecosystem, The Tony Elumelu foundation (TEF) Entrepreneurship Programme is creating opportunities through various projects targeting marginalized groups interested in entrepreneurship. Toward this goal, TEF has committed to disburse $100 million in seed capital over a period of ten years. With this funding, TEF has trained over 20,000 entrepreneurs, 9,000 of whom are women thus far. In 2023, over half of those employed by the businesses supported by TEF were women and almost one-third were youth.

The BeGreen Africa initiative, a collaboration between the TEF, United Nations Children’s Fund Generation Unlimited, IKEA Foundation, and young green entrepreneurs, is targeting 1,000 young entrepreneurs for training and mentorship. From this initial group, 120 will start green energy businesses in Kenya, Nigeria, Morocco, Senegal, or South Africa with $5,000 of seed funding. By empowering young people to create their own start-ups through social entrepreneurship, these burgeoning businesses will have the power to provide jobs, stimulate the economy, and provide a social good by working to minimize climate change.

In 2020, the TEF partnered with the European Union, the Organisation of African, Caribbean and Pacific States, the German Federal Ministry for Economic Cooperation and Development, Seedstars Association For Entrepreneurship in Emerging Markets, and the Deutsche Gesellschaft für Internationale Zusammenarbeit  to implement a women-focused initiative called Women Entrepreneurship for Africa (WE4A). Through this initiative, 2,420 women from underserved communities and the informal sector in sub-Saharan Africa received much-needed training, mentoring, networks, and seed capital funding. Of these 2,420 women, 100 went on to participate in the second stage of the program, through which they received advanced technical support and additional funding. Building on the learnings and positive outcome of this partnership, in 2021, the TEF partnered with Google to launch yet another women-focused initiative that saw 500 rural-based aspiring women entrepreneurs receive seed capital of $5,000 in addition to training, mentoring, and access to networks.

TEF has also joined forces with Sightsavers to implement a program that supports African entrepreneurs with disabilities. A recent case study TEF conducted revealed that many entrepreneurs with disabilities were able to launch their businesses despite systemic barriers. For example, one entrepreneur created a thriving IT services company offering both technical support and assistive technology for visually-impaired individuals. Their entrepreneurial journey is a testament to how comprehensive support—combining seed capital, mentorship, and skills training—can empower even the most marginalized groups to succeed.

As a result of these and other initiatives, TEF is empowering a new generation of African entrepreneurs and helping drive poverty eradication and the amelioration of challenges like climate change. The Foundation also aims to increase economic inclusion and empower rural-based women by strengthening their livelihoods and incomes, while creating decent jobs in the African economy.

Addressing the challenges

While there are many success stories, challenges persist. One of the most significant obstacles is access to finance. Despite the $5,000 seed capital provided to our entrepreneurs, many continue to struggle with scaling their businesses due to a lack of growth capital. A recent WE4A Tracer Study published by an independent research team reported that 69% of the WE4A participants identified resource constraints as a key barrier to business growth. If we are to fully unlock the potential of African entrepreneurs, we must develop more inclusive financial systems that provide accessible funding at every stage of business growth.

Women entrepreneurs in Africa tend to remain in the informal sector. This occurs for three main reasons: 1) women’s overall lower level of education compared to men can instill a sense of inadequacy that makes women hesitant to join the formal sector; 2) culturally, women remain the primary caretaker of the home, limiting the time they can commit to a business; and 3) access to financial capital remains a substantial hurdle. Bringing these businesses into the formal sector could invigorate the economy by providing additional jobs and tax revenue among other societal and personal benefits. The hurdles to doing so can be overcome through appropriate programs which provide business and financial literacy training paired with financing opportunities. However, without a cultural shift, many women will remain unable or unwilling to seek out these options. Therefore, it is important that organizations working to achieve the goal of advancing entrepreneurship across the continent also support policy changes that can lead to a shift in the ways that people view gender roles in society.

Other challenges are posed by infrastructure constraints and market access. Many young entrepreneurs, particularly those from rural areas, face difficulties in accessing digital platforms, supply chains, and critical business networks. Rural entrepreneurs in our programs reported barriers such as poor internet access, which hindered their ability to participate fully in training and online markets.

Building the ecosystem for growth

While much has been accomplished thus far, the needs across the continent are too high for TEF to fulfill alone. Partnerships have enhanced the ability to reach more people and provide additional training, financing, and services. These partnerships will need to continue and more must be established for entrepreneurship to have its maximum effect on the economies of Africa and help achieve the SDGs by 2030. The private sector cannot do this alone. Governments across Africa should focus on improving infrastructure and implementing policies that are favorable toward start-ups in order to remove substantial barriers to successful entrepreneurial endeavors. Collectively, these varied organizations have the ability to create a positive business environment that empowers all entrepreneurs.

Looking ahead, the success of Africa’s entrepreneurial ecosystem will depend on strategic publicprivate partnerships. These collaborations are essential to ensuring that both youth and women entrepreneurs have access to the resources, mentorship, and networks they need to scale their businesses. At the TEF, we have seen how partnerships with other organizations open significant pathways for market access, skills development, and community-building for African entrepreneurs— allowing us to equip entrepreneurs with long-term mentorship and support. These partnerships are imperative, as one organization cannot meet the enormous need across the continent.

By leveraging the expertise of multiple organizations, entrepreneurship initiatives across Africa will have a profound effect on the economy and daily life. The work of the TEF and other, similar programs will need to be scaled up extensively to meet the needs of entrepreneurs across the continent. While initial seed funding is critical, many entrepreneurs also express the need for ongoing guidance as they navigate the complex stages of growth. This highlights the importance of sustained support systems that go beyond the start-up phase.

The path forward

At the Tony Elumelu Foundation, we remain committed to nurturing the next generation of African entrepreneurs. We believe that entrepreneurship is the key to unlocking Africa’s potential and that young people and women are leading this charge. As we look ahead to 2030, our goal is to ensure that every entrepreneur—regardless of gender, location, or ability— has the tools to succeed. Through entrepreneurship, we can reduce poverty (SDG 1), create decent jobs (SDG 8), and foster inclusive economic growth (SDG 10).

As we continue to witness the transformational power of entrepreneurship, we remain optimistic that Africa’s women and youth will not only be the drivers of economic progress, but the architects of a sustainable and prosperous future.

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