HARNESSING TECHNOLOGY FOR WOMEN ENTREPRENEURS TO DRIVE INTER AFRICAN TRADE AND ECONOMIC EMPOWERMENT
Emmah Matiza Guta
Abstract
This document explores the intersection of Technology and Women Empowerment in Africa, examining the opportunities, and strategies involved in leveraging technology to advance the works of women in trade. Through review of existing literature and case studies, this piece of work investigates how various forms of technology, including digital tools, internet access, mobile devices, and artificial intelligence, can empower women economically. It analyses the how technology can be harnessed to foster trade across Africa.
Drawing upon empirical evidence and expert insights, the paper identifies key suggestions and recommendations for promoting women’s participation in the tech sector, enhancing digital literacy and skills training, fostering inclusive tech innovation, and ensuring equitable access to digital resources across the continent of Africa.
Background
Women traders cross borders throughout Africa every day and make a major economic contribution to the continent. Estimates suggest that informal cross-border trade contributes substantially to the economies of many African countries and is a source of income for about 43 percent of the total African population (Afrika and Ajumbo 2012). In southern Africa, informal cross-border trade is thought to amount to as much as 30– 40 percent of total recorded formal trade between countries in the region, entailing some US$20 billion per year (SARDC 2008).
This amounts to almost half of total development assistance to Sub-Saharan Africa as a whole. At one border post alone between Malawi and Zambia, informal trade may amount to almost US$3 million per month (Njiwa, et al. 2011). A range of studies throughout the continent confirms that the majority of informal cross-border traders are women. These traders play a key role in food security, bringing basic food products from areas where they are relatively cheap to areas where they are in short supply.
The incomes they earn from these activities are critical to their households, often making the difference, for example, in whether children go to school or not. Small cross border trade fosters shared economic growth and interdependence between populations and is especially important for those with a history of division and mistrust. According to surveys, informal cross-border trade in the Great Lakes region between the Democratic Republic of Congo (DRC) and Uganda and between south Sudan and Uganda is likely to be several times larger than officially recorded trade flows.
Tech-facilitated trade in Africa by women – case studies
- According to https://hbr.org (2019), Kenya has cultivated a reputation as the “Silicon
Savannah” thanks in large part to its tech-savvy ecosystem, which was supercharged by the success of M-Pesa, a mobile payment technology by Safaricom.15 Women in Kenya have the strongest female representation among start-up co-founders at 25%, compared to companies in Nigeria, Ghana, and South Africa that participated in the survey (www.forbes.com, 2019) But, this represents a gender gap of 50 percentage points, as there are three men for every woman co-founder. Kenya also faces a stark gap between funding going to local Kenyans and the much larger share going to predominantly white, foreign expatriates launching start-ups in African cities. - Nigeria’s strong entrepreneurial spirit has earned it the top spot as the premier destination for tech start-up funding, attracting more than a third of all venture capital tech start-up funding on the continent at $747 million in capital investment according to a 2019 report by Partech (https://partechpartners.com, 2019). The relative affordability of the internet may also play an important role in fostering a supportive environment for tech start-ups in Nigeria, along with the government’s efforts to create a digital identity system. Nigeria is known for having the highest rate of female entrepreneurship in the world, with some reports citing the achievement of gender parity in women-owned businesses in Nigeria. Yet, only 15% of tech start-up co-founders in Nigeria are women among companies surveyed.22 So, while the digital ecosystem is dynamic and exciting, gender inclusivity remains a long way off
- According to a document by (Njiwa 2012), The Uganda Export Promotion Board launched a pilot project to develop a trade facilitation regime for Ugandan women involved in cross border trade. The project targeted four of Uganda’s key borders and included a fast-track clearance process, a customs integrity action plan, trade capacity hubs for women at each border crossing, and capacity-building modules developed and approved by women involved in informal trade.
- Through training on export opportunities and capacity building for trade participation, the project helped informal women traders formalize their agribusinesses so that they can become small or medium export businesses by strengthening the quality of their products and forming market links with international buyers.
Harnessing of Technology to foster Women Trade in Africa
Trade Blocs
- COMESA has supported the establishment of trade information desks (TIDs) at each STR implementing border to (1) help small traders use the STR and deal with other formalities;
(2) disseminate information on trade procedures and regional initiatives; and (3) act as a liaison between traders and border authorities in daily operations. TIDs have generally been found to provide useful services to traders where they exist, but there are still issues concerning the sustainability of their funding and staffing (Njiwa and Oldham 2011).
Digital Literacy and Training - Launching digital literacy programs targeting women of all ages, including those from rural and marginalized communities, to equip them with basic computer skills, internet navigation, and online safety practices. Collaborating with local educational institutions, NGOs, and community centers to offer vocational training courses in digital skills such as coding, graphic design, and digital marketing, enabling women to access employment opportunities in the rapidly growing tech sector. Establishing women-centric technology hubs or innovation centers where women can receive advanced training, mentorship, and support to pursue careers in fields such as artificial intelligence, cybersecurity, and software development.
Technological Facilities
- Quite a number of women in low- and middle-income countries have mobile phones (USAID 2020). By expanding the use of computers, the Internet, and cell phone infrastructure for trade, governments can limit corruption and harassment and improve efficiency in agricultural markets for both men and women. For example, when Ghana computerized customs services for cross-border taxes and regulations, reports of abuse and sexual harassment decreased, and there was an estimated 35 percent reduction in occurrences of corruption (USAID 2012).
- In Kenya, phone systems have allowed rural women to obtain direct information on the price of food crops, enabling them to negotiate better prices with middlemen. The extent to which women are computer literate and able to use technology resources may vary greatly by region and culture. The innovation of new ICT services should be accompanied by skill-building workshops held at locations and times convenient to women.
Technological facilities
Dada, Eniola (2012) conducted a research on Cross-border Trade and Women in West Africa. They noted a number of technological aspects to consider so as to protect women at boarder posts and facilitate smooth flow of trade across Africa. Hidden cameras, border information centers and help lines (or call center) can provide advice and guidance to female traders. Mediation centers where women traders can file workplace complaints can serve as a liaison among traders, officials, and governments in record keeping and data collection as well as mediating issues faced by traders.
These activities can also be a function of the border information centers. Mobile tracking, recording, and information software (for example, Jamobi Kenya for bookkeeping).
Education Empowerment
One of the primary ways Technology can empower women in Africa is by improving access to education. Through online platforms and digital learning resources, women, especially those in remote areas, can access quality education without geographical constraints. Initiatives such as virtual classrooms, online tutorials, and e-libraries can bridge the gap in educational opportunities and empower women with knowledge and skills to pursue higher studies and professional careers. It is a key enabler in bridging the gender gap in educational opportunities. Through e-learning platforms, online courses, and digital resources, women around the globe can now acquire knowledge and skills regardless of geographical constraints or traditional barriers. Courses like digital graphics, background development course, Interior Designing, Financial Modelling, Jewellery Designing help women to change their lives and fulfil their dreams.
Economic Empowerment
Empowering women economically is crucial for achieving gender equality and fostering inclusive growth. Technology plays a pivotal role in expanding economic opportunities for women by providing avenues for entrepreneurship, remote work, and financial inclusion. E-commerce platforms enable women entrepreneurs to showcase their products and services to a global audience, while digital payment systems facilitate financial transactions and empower women to participate more actively in the formal economy. Additionally, technology-driven initiatives such as microfinance and digital banking empower women with greater control over their financial assets and decision-making autonomy. Digital platforms for skill development, such as vocational training programs and online marketplaces, can enable women to explore new avenues for income generation. Initiatives promoting digital literacy and e-commerce can empower women artisans, entrepreneurs, and small-scale businesses to reach wider markets and enhance their financial independence. Small-scale businesses such as bakery, beauty salon, event management, yoga classes, catering, fashion design enhance women empowerment in rural areas also.
Internet infrastructure development
Efforts have been made to build equitable infrastructure for internet access in communities and in schools. However, some parts of the continent remain without access to the internet and traditional cellular networks. Efforts to make the internet an affordable, public good have allowed for greater access by women and girls.
Social Empowerment
Technology serves as a powerful tool for amplifying women’s voices and fostering social change. According to Higgins and Turner (2020), social media platforms provide women with a platform to share their stories, connect with likeminded individuals, and advocate for gender equality and women’s rights. Digital activism campaigns harness the power of social media to raise awareness about pressing issues such as gender-based violence, workplace discrimination, and reproductive rights. Furthermore, online communities offer a supportive space for women to seek advice, mentorship, and solidarity, thereby fostering a sense of belonging and empowerment in virtual spaces.
Recommendations
- Promote regional collaboration across digital technologies. The Africa Continental Free Trade Area has the potential to open up new opportunities for digital trade between countries. The digital regulatory environment and architecture should have a focus on gender inclusion
- Governments should work with the private sector to collect better data on women in tech. There is a need for better, more consistent, and more transparent data on African women in tech in order to properly measure the current underrepresentation and account for progress moving forward.
- There is need to co-invest in public-private partnerships that are mutually beneficial to achieving gender inclusion in tech. Private sector technology and telecommunications companies have a shared interest in improving internet access and digital learning that promote a more gender-inclusive workforce.
Conclusion
Suggestions and recommendations in this piece demand a reprioritization of resources.
However, the cost of not taking these steps and leaving millions of African women behind, as tech changes the way all businesses work, is simply not an option. In fact, the opportunity for a gender-inclusive digital economy will far outweigh any costs since it is proven that a more gender diverse workforce is more innovative and more financially successful, and that connectivity enhances access to information. The tech boom in Africa is still young and the time to course-correct is now.
References
- Dada , Eniola. 2012. “Women’s Economic Empowerment Issues Paper; Special Report: Cross-Border Trade and Women in West Africa,” OECD Issues Paper 10, Organisation for Economic Co-operation and Development, Paris.
- Dada, Eniola. 2012. “Cross-border Trade and Women in West Africa,” West Africa Insight, June 2012: Cross-border Trade Issue, http://www. westafricainsight.org/articles/view/183.
- Higgins, K. and Turner, L. 2020. “Integrating Poverty and Social Analysis into Aid for Trade Programs: Trade Facilitation and Trade-Related Infrastructure.” Brief 3, Department for International Development, London.
- https://partechpartners.com/news/2019-partech-africa-report-here-and-its-best-yet-us-2-02-b-raised/
- Njiwa, D. 2012. “Informal Cross-border Trade: Challenges and Opportunities: A Case of COMESA and Its STR
Implementing Borders, COMESA.” COMESA, - http://www.cbtcomesa.com/downloads/file/201306171654160.
IDEP_ICBT%20report%20_final%20draft.pdf. - https://www.forbes.com/sites/meghanmccormick/2019/10/21/study-finds-that-there-are-more-expat-founders- in-kenya-than-femalefounders/?sh=5069bb93730c
- https://hbr.org/2019/12/research-how-technology-could-promote-growth-in-6-african-countries
- https://partechpartners.com/documents/12/2020.01_Partech_Africa_-
_2019_Africa_Tech_VC_Report_FINAL.pdf