Next Generation Women Leaders — Unapologetically Powerful

Amira Adamu Waziri (Senior Advisor, **Mining and Policy to the Honorable Minister for Solid Minerals**)

Africa has the highest female representation on company boards of any region — 25% against the global average of 17%, according to a 2019 study by consultancy firm, McKinsey & Co. The continent has made notable strides in enhancing women’s representation in leadership roles across various sectors. Yet, significant disparities persist, necessitating targeted strategies to achieve true gender parity.

As of 2019, women held 25% of board seats across Africa, surpassing the global average of 17%. Despite this progress, the representation of women in executive roles remains limited, with only 8% serving as board chairs and 9% as CEOs.

The journey to leadership for women is often marked by systemic barriers and invisible ceilings. However, with the right mindset, network, and influence, women can break through these obstacles and lead unapologetically.

Notably, only 13 countries, primarily in Europe, achieved gender-equal cabinets with 50% or more women cabinet members. These countries include Albania (66.7%), Finland (64.3%), Spain (63.6%), Nicaragua (62.5%), Liechtenstein (60%), Chile (58.3%), Belgium (57.1%), Mozambique (55%), and Andorra, Colombia, Germany, Netherlands, and Norway (50% each).

Persistent Challenges — Biggest financial mistakes young women in business make

Lily Okoronkwo-Next Generation Women Leader (McKinsey) award recipient

1. Mixing Personal and Business Finances

Many young entrepreneurs fail to separate personal and business accounts, which can lead to tax complications, disorganized finances, and potential legal issues. For instance, using personal credit cards for business expenses or vice versa can create confusion during audits and hinder proper financial tracking.

Solution: Open separate bank accounts and credit lines for your business. Use accounting software or hire a professional to keep track of expenses.

2. Lack of Financial Literacy

A significant number of women entrepreneurs lack in-depth knowledge about budgeting, investing, and financial planning. This gap often leads to poor decision-making and missed opportunities for growth.

Solution: Invest in financial education through workshops, online courses, or mentorship programs. Understanding concepts like cash flow management, taxes, and investment strategies is very important.

3. Overinvesting in the Business

Young women in business may allocate too much capital to non-essential expenses like high-end office spaces or unnecessary equipment. This overinvestment can drain resources before the business becomes profitable.

Solution: Prioritize spending on activities that directly contribute to revenue generation. Create a lean budget and focus on building a strong product or service first.

4. Ignoring Cash Flow Management

Cash flow is the lifeblood of any business, yet many young entrepreneurs focus solely on revenue without monitoring cash flow. This oversight can lead to an inability to cover operational costs during lean periods.

Solution: Implement robust cash flow management practices by tracking income and expenses regularly. Maintain a reserve fund for emergencies.

5. Failing to Plan for Retirement

Many young women delay retirement planning because it seems distant or irrelevant during the early stages of their careers. However, this delay can result in missed opportunities for compounding interest.

Solution: Start contributing to a retirement fund as early as possible, even if it’s a small amount. Consider consulting a financial advisor for tailored retirement planning.

6. Limited Access to Capital

Women entrepreneurs often face challenges in securing loans due to lack of collateral or gender biases in the financial sector. This limits their ability to scale their businesses.

Solution: Explore alternative funding options such as government grants, microfinance programs, or crowdfunding platforms specifically designed for women entrepreneurs.

7. Not Paying Themselves

Some women entrepreneurs reinvest all earnings back into the business without paying themselves a salary. While this may seem like a sacrifice for growth, it can lead to personal financial instability.

Solution: Pay yourself a modest but consistent salary to maintain personal financial health while ensuring the business remains sustainable.

8. Neglecting Professional Advice

Many young entrepreneurs try to handle everything themselves, including complex financial tasks like tax planning or investment decisions. This DIY approach can lead to costly mistakes.

Solution: Work with qualified accountants and financial advisors who specialize in small businesses or startups.

9. Relying on a Single Income Source

Dependence on one revenue stream makes businesses vulnerable during economic downturns or unexpected disruptions.

Solution: Diversify income streams by exploring side ventures, investments, or complementary services within your industry.

10. Underestimating Running Costs

Failing to account for hidden costs such as marketing, legal fees, or inventory can lead to budget shortfalls and operational challenges4.

Solution: Create detailed budgets that factor in all potential expenses and regularly review them for accuracy.

How Women Can Influence Economic Policies in Africa

Women’s engagement in economic governance is important for Africa’s development, yet their impact is limited due to institutional constraints. Women may have a big impact on economic policy across the continent by employing strategic tools, lobbying for inclusive policies, and holding leadership positions.

Actionable methods to strengthen their participation in economic policymaking Include:

1. Gender-Inclusive Governance

Research shows that including women in leadership leads to better financial performance and sustainable policy outcomes. Countries like Rwanda, where women hold 61% of parliamentary seats, demonstrate the transformative impact of gender-inclusive governance. Women leaders have successfully championed reforms that prioritize equitable growth and social welfare.

Actionable Steps:

Advocate for Gender Quotas: Rwanda’s success with binding gender quotas highlights the importance of legislative measures ensuring women’s representation in policymaking.
Encourage and support women to occupy high-level positions in government and financial institutions.

2. Leveraging Regional Frameworks

Initiatives like the African Union’s Agenda 2063 and the African Continental Free Trade Area (AfCFTA) provide platforms for women to influence economic policies. These frameworks aim to promote resilience, integration, and equitable growth but require active participation from women leaders.

Actionable Steps:

Engage with AfCFTA: Women entrepreneurs and policymakers can advocate for gender-sensitive trade regulations that address barriers such as limited access to finance and markets.
Participate in Regional Forums by joining platforms like the IGAD Women Business Forum to collaborate on cross-border trade facilitation and policy advocacy.

3. Financial Literacy and Economic Empowerment

Economic empowerment is a critical catalyst for influencing policies. Programs like UNDP’s entrepreneurship training have shown that equipping women with financial literacy enhances their ability to advocate for policy changes and create scalable businesses.

Actionable Steps:

Invest in Financial Literacy: Governments and organizations should provide training programs tailored to women entrepreneurs, focusing on financial management, market analysis, and risk assessment.
Develop gender-focused financial instruments such as micro-loans and grants to support women-led businesses.

4. Advocacy Through Technology

Social media and artificial intelligence (AI) are powerful tools for amplifying women’s voices in policymaking. Platforms like SheVotes in Nigeria use AI to identify voter trends, while Code for Africa tracks gender equality legislation.

Actionable Steps:

Utilize Social Media Campaigns: Women can use social media to raise awareness about gender-specific challenges and mobilize support for policy reforms.
Use AI-driven insights to craft evidence-based policies addressing barriers faced by marginalized groups.

5. Building Networks and Alliances

Strategic networking is essential for influencing economic policies. Collaborative efforts between women leaders can amplify their impact on governance structures.

Actionable Steps:

Form Alliances: Create coalitions of women leaders across sectors to collectively advocate for policy changes.
Establish mentorship initiatives that prepare young women for leadership roles in economic governance.

6. Addressing Cultural Barriers

Cultural norms often limit women’s participation in economic policymaking. Awareness campaigns and training programs can help overcome these challenges by building confidence and skills among aspiring women leaders.

Actionable Steps:

Launch Awareness Campaigns: Promote the importance of women’s participation in governance through education initiatives.
Advocate for safer environments that encourage female politicians to engage without fear.

Case Studies of Success

Examples from across Africa illustrate how women have influenced economic policies:

Ellen Johnson Sirleaf (Liberia): As Africa’s first elected female head of state, Sirleaf served as President of Liberia from 2006 to 2018. Her administration focused on rebuilding the nation’s economy post-civil war, attracting foreign investment, and prioritizing education and women’s representation in government.
Ngozi Okonjo-Iweala (Nigeria): Serving twice as Nigeria’s Finance Minister, Okonjo-Iweala spearheaded negotiations leading to the elimination of $30 billion of Nigeria’s debt. In 2021, she became the first woman and first African to lead the World Trade Organization, where she addresses global trade challenges and advocates for equitable vaccine distribution.
Oby Ezekwesili (Nigeria): A co-founder of Transparency International, Ezekwesili served as Nigeria’s Minister of Solid Minerals and later as Minister of Education. She also held the position of Vice President of the World Bank’s Africa region, overseeing operations in 48 countries and managing a lending portfolio exceeding $40 billion.
Agnes Kalibata (Rwanda): As Rwanda’s Minister of Agriculture and Animal Resources from 2008 to 2014, Kalibata implemented policies that significantly improved food security and reduced poverty. She currently serves as President of the Alliance for a Green Revolution in Africa (AGRA), focusing on transforming agriculture across the continent.
Anta Babacar Ngom (Senegal): In 2024, Ngom became Senegal’s first female presidential candidate in over a decade, advocating for women’s empowerment and economic reforms aimed at creating millions of jobs and establishing a women’s bank.
Fasiha Hassan (South Africa): At 30, Hassan is South Africa’s youngest politician and a former student leader during the #FeesMustFall protests. She is actively advocating for economic reforms, gender equality, and addressing systemic issues within the African National Congress (ANC).

These achievements highlight the crucial role of supportive policies and societal attitudes in fostering female leadership.

Women’s influence on economic policies is not just a matter of equity but a necessity for sustainable development in Africa. Their active participation will ensure more balanced representation in policymaking processes, encouraging inclusive growth across the continent.

Strategies for Empowering Women’s Leadership

To address these challenges and enhance a more inclusive leadership landscape, the following strategies are recommended:

Implement Quotas and Policies: African governments and regulatory bodies should consider enforcing quotas for female representation on boards and in executive roles. Countries like Rwanda, which have adopted gender quotas, have seen significant improvements in women’s participation in leadership positions.
Promote Education and Professional Development: Investing in education and professional development programs for women can help build a pipeline of qualified candidates for leadership roles. Scholarships, mentorship programs, and leadership training can play a crucial role in this effort.
Encourage Inclusive Corporate Cultures: Organizations should cultivate environments that value diversity and actively work to eliminate bias. Implementing diversity and inclusion training, along with transparent promotion processes, can help create a more equitable workplace.
Enhance Networking Opportunities: Establishing networks and mentorship programs specifically for women can provide the support and connections needed to advance in their careers. Organizations like the Women on Boards Network in Kenya are already making strides in this area.
Highlight Role Models: Celebrating the success of women in leadership positions can inspire and motivate others. Highlighting female role models in corporate leadership can help break down stereotypes and encourage more women to aspire to these roles.

While Africa has made commendable strides in increasing women’s representation in leadership, substantial work remains to achieve true gender parity. By implementing targeted strategies that address cultural, educational, and structural barriers, the continent can unveil the full potential of its female leaders, driving inclusive growth and development.