Unlocking the Potential of Female Entrepreneurship in Cameroon

ghjkkkWritten by: Dr Jean Cedric Kouam, Dr Bin Meh, Laurent Brice Nsengue, Meh Desmond Kum and Isidore Njinju Asongalem

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EXECUTIVE SUMMARY

Women’s entrepreneurship holds transformative potential in Cameroon, driving economic growth, reducing inequality, and fostering sustainable development. Despite ranking as the third-leading African country for women-led enterprises, systemic barriers impede women’s full economic participation. Female entrepreneurs constitute 24% of Africa’s entrepreneurial population and contribute 7-9% of the continent’s GDP ($150-200 billion annually). In Cameroon, women dominate the industrial (57.8%) and commerce (53.4%) sectors and make up 51.4% of the informal sector workforce, showcasing resilience and economic activity. However, limited access to finance, inadequate infrastructure, and societal biases restrict their ability to scale businesses and formalize operations. Women-led enterprises in Cameroon receive 30-50% less financing than their male counterparts, curbing their growth and job creation potential.

The dominance of informal enterprises (88% of SMEs) further compounds these challenges, exposing women entrepreneurs to economic vulnerabilities and limited institutional support. Although women reinvest up to 90% of their earnings into families and communities—compared to 40% for men—this leaves fewer resources for business expansion. Targeted interventions are imperative to unlock women’s economic potential, including gender-focused financial schemes, simplified business formalization processes, and investment in essential infrastructure such as affordable electricity and internet. Enhancing capacity-building opportunities in high-growth sectors like technology and healthcare, and addressing cultural biases, will further empower women entrepreneurs. By creating an enabling environment, Cameroon can harness the untapped potential of women entrepreneurs, contributing significantly to inclusive growth, poverty alleviation, and sustainable development.

INTRODUCTION

Unlocking the Potential of Female Entrepreneurship in Cameroon is widely acknowledged as a cornerstone for Cameroon’s socio-economic development strategy, contributing significantly to poverty alleviation, job creation, and innovation. About 50.5% of Cameroon’s population are women who constitute a major economic force, particularly within the informal economy (Ogunlana, S. (2020)). According to recent studies, from the Women in Informal Employment: Globalizing and Organizing (WIEGO, 2019)  women make up about 80% of the labour force in the informal sector, particularly in fields such as agriculture, retail, and services. This high participation rate underscores women’s role in sustaining livelihoods, yet gender disparities in access to resources, markets and legal protections hinder women’s full economic potential. Although women own approximately 35% of small and medium-sized enterprises (SMEs), barriers to accessing capital, business networks, and land rights lead to a notable productivity gap. This gap is estimated to cost Cameroon approximately 3.7% of GDP annually economic growth that remains unrealised due to the obstacles female entrepreneurs face, (African Development Bank, 2021; World Bank, 2022).

Cameroon’s rural areas, where nearly 85% of women are engaged in informal sector activities, particularly highlight the imbalance caused by these gender-based disparities. Women in these regions face limited educational opportunities compounded by fewer chances for formal employment. According to UN Women data published in 2020, during the COVID-19  pandemic, female-owned informal businesses experienced a 29% increase in unemployment, driven by market closures, disrupted supply chains and a reduction in consumer spending, (UN Women, 2020). Consequently, female entrepreneurs in Cameroon require targeted policy interventions that can address these systemic challenges, creating an environment where they can thrive and contribute fully to economic growth, (UNDP, 2021).

Examining the Root Causes and Consequences of Economic Inequality

The root causes of economic inequality in Cameroon are deeply tied to cultural and institutional factors that limit women’s access to education, financial resources and political influence. Social norms and gender biases restrict women’s economic participation, which is reflected in the barriers they face in areas such as financing, land ownership and enterprise development. Research from the International Labour Organisation indicates that, as of 2019, only 24% of female-owned businesses received financial assistance, compared to 46% of male-owned businesses. This discrepancy is due to factors like limited collateral, high interest rates and institutional biases that favour male-led enterprises, (International Labour Organization, 2019). Such financial exclusion forces many women to rely on personal savings or informal lending options, which restricts their capacity for growth and innovation, (World Bank, 2022).

The economic consequences of excluding women from full economic participation are profound, not only for individual women and their families but for Cameroon’s overall economy. Insufficient  capital for female entrepreneurs curtails their businesses’ growth, limits job creation and reduces contributions to local and national economies. Studies indicate that closing gender gaps in economic opportunities could increase the GDP of sub-Saharan Africa by as much as 12% by 2030. This increase underscores the macroeconomic impact of addressing gender-based barriers, especially in sectors where women are disproportionately underrepresented, (McKinsey Global Institute, 2020).

The Economic Ripple Effect of Women’s Empowerment

Empowering female entrepreneurs can thus create a positive feedback loop as women’s businesses growth, they contribute to household income, enhance family welfare and stimulate demand for products and services. When women are empowered economically, they reinvest 90% of their income back into their families and communities, compared to about 30-40% for men, indicating a broader societal impact, (UN Women, 2019). Through strategic policy initiatives that promote women’s access to financial resources, business networks and legal rights, Cameroon has an opportunity to bridge economic disparities and foster a more inclusive and resilient economy.