Former Malawi President Joyce Banda once said that the seeds of national success are best planted in women and children. Today, that message resonates strongly across East Africa.
Across Tanzania and Kenya, women are not just participating in the economy—they are sustaining it. They lead a large share of micro, small, and medium-sized enterprises (MSMEs). At the same time, they dominate the agricultural workforce. Their contributions support households, strengthen communities, and drive informal trade.
However, their full economic potential remains untapped.
Structural barriers still limit growth
Despite their impact, many women entrepreneurs face persistent challenges. Limited land ownership restricts their ability to secure loans. In addition, access to finance remains uneven. Education gaps and limited business training also slow expansion.
As a result, businesses that could scale often remain small.
In Tanzania, women already contribute significantly to GDP. Yet restricted access to resources continues to hold back broader economic gains. Closing this gap is not just about fairness,it is essential for economic growth.
A $1.7 billion opportunity
Recent estimates highlight a financing gap of about $1.7 billion for women-led businesses in East Africa. This gap represents both a challenge and a major opportunity.
To address it, stakeholders must go beyond traditional lending. Financial systems need to adapt to the realities women entrepreneurs face. Tailored solutions, flexible credit models, and inclusive policies are key.
Encouragingly, progress is underway.
Momentum builds across sectors
Development finance institutions and private sector players are stepping in. Many are aligning efforts to improve access to capital and business support.
For example, targeted trade finance programmes now support women-led enterprises. Gender-focused funding lines are also expanding. These initiatives help businesses move beyond survival and into growth stages.
At the same time, capacity,building programmes are gaining traction.
Skills and mentorship unlock potential
Across East Africa, organisations are investing in skills development. They are equipping women,especially young entrepreneurs,with tools to succeed in competitive markets.
Programmes like Ready for Inclusive Sustainable Employment and Entrepreneurship (RISE/E) provide structured pathways into jobs and business opportunities. Participants gain mentorship, practical skills, and access to networks.
Similarly, initiatives such as the Wazo Bora Pitch Challenge support women entrepreneurs, including those with disabilities. These platforms offer training, mentorship, and funding to transform ideas into scalable ventures.
Importantly, these programmes focus on more than funding. They strengthen the entire business ecosystem.
Economic impact is significant
When women participate fully in entrepreneurship, the benefits ripple across the economy. Studies show that expanding women’s economic participation could add between 2.5 and 4.5 percentage points to annual GDP growth in East Africa.
This growth would accelerate development and improve resilience across the region.
The path forward
To sustain momentum, collaboration remains critical. Financial institutions, policymakers, and development partners must continue working together.
They need to remove systemic barriers, improve access to finance, and invest in education. In addition, stronger market linkages will help women,led businesses reach new customers and scale faster.
Ultimately, empowering women in enterprise benefits everyone.
When women succeed, households become more stable. Communities grow stronger. Economies become more resilient.
East Africa’s growth story is already being written by women. Now, the focus must shift toward giving them the tools, capital, and support to scale that success.
By Desideria Mwegelo
