How the pandemic has deepened inequalities for women-led African businesses

The COVID-19 pandemic has brought about unprecedented challenges for businesses worldwide, and women-led businesses in Africa have not been spared from its detrimental effects. In a recent interview with CNBC Africa, Fatou Lo, the UN Women Representative in Rwanda, shed light on how the pandemic has exacerbated existing inequalities for women agripreneurs across the continent. According to Lo, women in Africa are disproportionately represented in the agriculture labor force as smallholder farmers, cultivating small plots of land primarily for family consumption. This limits their ability to scale up production and enter the agricultural value chain to generate more income. Additionally, women are prevalent in the informal sector and small to medium enterprises, with many operating in sectors hardest hit by the pandemic, such as hospitality, tourism, and cross-border trade. One of the key issues highlighted by Lo is the lack of access to resources and technologies that would enable women to transition from smallholder farming to larger scale agricultural businesses. Land ownership remains a significant barrier for women in many African countries, with limited access to quality land, irrigation, and fertilizers preventing them from expanding their agricultural ventures. Furthermore, women in the hospitality and tourism industries, while slightly more advanced than smallholder farmers, still face challenges in accessing finance, networks, and resources needed to grow their businesses. Despite their presence in these sectors, women are often not among the major players, further perpetuating the cycle of inequality. The pandemic has only worsened the situation for women-led businesses in Africa, with mobility restrictions affecting cross-border trade and economic uncertainty leading to job losses, particularly for women in entry level positions or insecure contracts. As companies struggle to survive the crisis, women are at risk of being disproportionately impacted by layoffs and restructuring efforts. In response to these challenges, organizations like the UN Women and the Food and Agriculture Organization (FAO) are working to support women in the agriculture sector by connecting them to agricultural value chains and providing the necessary resources to scale up their businesses. Initiatives aimed at improving land ownership rights for women and increasing access to technology and finance are essential in addressing the systemic inequalities faced by women agripreneurs in Africa. Moving forward, it is crucial for governments, businesses, and international organizations to prioritize gender equality and women's empowerment in economic recovery efforts post-pandemic. By promoting inclusive policies, providing targeted support, and creating opportunities for women-led businesses to thrive, Africa can work towards building a more equitable and sustainable future for all.