Balancing the scales: how gender equality can drive African prosperity

As South Africa celebrates Women’s Day on 9 August each year, the whole month is generally focused on driving visibility around inclusion of women. And certainly, South Africa’s gender parity is improving – Grant Thornton’s 2023 International Business Report showed, that the percentage of female CEOs increased from 11% in 2019 to 30% in 2022.

It’s a good improvement, but clearly there is still work to be done.

If we broaden our view to the continent, we see that the empowerment of women is becoming a more consistent theme. According to World Bank data,  the proportion of seats held by women in national parliaments in sub-Saharan Africa was 12% in 2000, 19% in 2010, and 25% in 2020. The African countries leading the pack for women holding seats are Rwanda (61%), South Africa (47%) and Namibia (44%).

There are however still many opportunities to close the gender gap in Africa, some cultural, some historical, and some political – many policies and legislation are still rooted in a bygone age. UNICEF tells us that women and girls still carry the majority of the care and domestic burden in every African country. They’re also less likely to be employed in the formal sector, and to earn less when they are. They’re less likely to be able to influence government policy, and experience high levels of violence.

This last factor is particularly evident – somewhat surprisingly – when it comes to business. A survey conducted by UN Women, UNDP and the AfCFTA Secretariat in 2021 highlights that over 31.9% of women small business owners reported having encountered violence or aggression, particularly when engaging in informal cross-border trade. The vast majority of this trade (70%) is conducted by women.

By not prioritizing women’s empowerment as a continent, we are missing a real opportunity for prosperity. Africa is home to nine of the world’s 20 fastest growing economies – Niger, Senegal, Libya, Rwanda, Côte d’Ivoire, Djibouti, Ethiopia, the Gambia, and Benin, making it an exciting destination for businesses looking for new markets. But persisting gender inequality is limiting that potential. Empowering all women – not just those at the top of the pyramid – can change the fortunes of Africa’s social and economic progress enormously and help the continent to reach its potential.

The evidence is clear: new research from the McKinsey Global Institute says that if African economies accelerate progress towards parity, they could boost their collective GDP by 10% by 2025. In addition, the Institute for Security Studies says realistic reductions in gender inequality could produce a US$259 billion larger economy in 2043 than current forecasts predict.

Prof Prof. Parmi Natesan , CEO of the Institute of Directors South Africa , writing earlier this year about gender equality and why it’s important for Africa, highlights that improving women’s participation in all aspects of society could lead to more effective and sustainable operations, and fundamentally reshape our society – something we can all benefit from.

When I started at TransUnion Africa as CEO, I realized that I had the opportunity to make an impact over and above delivering great business results – a part of my legacy could be to address some of the orthodoxies of our industry.  I wanted to transform the business to create better diversity and inclusion – specifically to create more equity and opportunities for women in our business. We reconstructed the leadership team and addressed representation throughout the company and now women represent almost 55% of our business and 60% of the leadership team. It has transformed the culture of our organization and played a significant role in our success.

So, my question to you is, what are you, as an African leader, doing to advance the cause of women? What are you doing to make this change in the country where you live and work and run your business?

This is a problem that matters – but it won’t be solved by government policy alone. It requires that leaders in all spheres of society – government, business and civil society – prioritise women’s empowerment and remove the barriers that are keeping them disenfranchised.

As African leaders, we must champion women’s empowerment not just in words, but through our actions. And there are some concrete steps we can take:

1. Support leaders who fight for gender equality;

2. Address pay disparities and ensure equal compensation in our businesses;

3. Create safe, inclusive environments free from harassment and violence against women – wherever we may find ourselves; and

4. Actively partner with women to dismantle traditional stereotypes and gender roles.

Empowering women isn’t just the right thing to do – it’s a catalyst for economic growth and societal progress. The future of Africa depends on unlocking the full potential of all its people.

The question then, having read this article is .. What will you do to drive this change?