The rise of Rwanda’s women-led tech startups in breaking barriers

Rwanda’s commitment to gender equality is renowned, particularly in politics—women make up 61% of the parliament, the highest percentage globally. However, the business and entrepreneurship sectors paint a different picture.

A 2023 Rwanda Development Board (RDB) report reveals that women are majority shareholders in only 34% of domestic companies. While this indicates progress, it also highlights the disparity in ownership of larger enterprises.

On a brighter note, women own 51% of individual businesses, showcasing their active participation in small-scale entrepreneurship.

Challenges in scaling up

Despite increasing numbers of women entrepreneurs, significant challenges persist, especially when scaling businesses. Securing capital for expansion remains a primary hurdle. Larger companies require substantial financial investment, but women often face greater difficulty in obtaining these funds. This can stem from investor perceptions of higher risk or limited access to credit and financial resources.

Women entrepreneurs frequently miss out on crucial mentorship opportunities and professional networks. These connections are vital for business growth, but women’s underrepresentation in these circles hampers their ability to scale up effectively.

Women redefining Rwanda’s startup ecosystem

Despite these obstacles, a growing number of women are making significant strides in Rwanda’s startup ecosystem. Christelle Kwizera, founder of Water Access Rwanda, has successfully scaled her startup to provide clean water to over 130,000 Rwandans, demonstrating the impact of women-led ventures.

In 2023, the Mastercard Foundation recognized several Rwandan women entrepreneurs for their innovative contributions across sectors, from agriculture to fintech.

Bridging the gap: Initiatives empowering women entrepreneurs

To address the gender disparity, several initiatives have been launched. The Rwanda Women in Business initiative, partnering with local banks, has disbursed over RWF500 million (approximately USD500,000) in loans to women-led startups since 2020.

Programs like the African Women in Business Initiative offer tailored mentorship and training, helping bridge the gap in skills and resources.

The road ahead in enabling a more inclusive startup ecosystem

To empower women entrepreneurs, it’s crucial to expand existing support systems. By creating a more inclusive financial ecosystem and providing increased opportunities for mentorship and networking, Rwanda can ensure that women have equal opportunities to grow their businesses.

The future of Rwanda’s startup ecosystem lies in harnessing the full potential of its women entrepreneurs. As more women break through barriers and achieve success, they pave the way for others, creating a more diverse and innovative business landscape.

References:

1. https://rdb.rw/ar/2023-RDB-AR.pdf
2. https://www.linkedin.com/posts/umulinga-karangwa-cfa-8411542_rwanda-registers-record-high-growth-in-women-owned-activity-7061945748568838144-Xww2/
3. https://techgyant.com/iwd-2024-women-leading-the-rwanda-tech-ecosystem/