Women entrepreneurs in Africa overtrained but underfunded, $42 bn gap persists

Carolyne Kirabo, founder of Uganda‑based M‑Kyala Capital, says African women entrepreneurs are being overtrained but remain underfunded. After completing eight accelerator programmes, one East African founder still had no investment, illustrating a cycle where women are repeatedly trained for funding that never arrives. Kirabo argues the finance industry blames women’s supposed lack of confidence, collateral or skills, shifting the blame away from investors who fail to look beyond their usual networks or adapt their lending criteria. The International Finance Corporation estimates a $42 billion financing gap for women‑owned businesses across the continent, while an industry of accelerators, mentorship and financial‑literacy programmes has grown to prepare them for capital that rarely materialises. M‑Kyala Capital is trying a different model: it offers working‑capital debt, starting at about $50 000, ties further funding to repayment performance, and couples capital with operational support—providing money first, then help. The fund targets businesses in agriculture, food processing, light manufacturing, retail and services, sectors that need predictable working capital rather than the high‑growth, tech‑focused model favoured by most venture capital. Kirabo urges investors to look beyond standard pipelines, build trust with women‑led firms, and tailor finance to real growth plans instead of treating training as a substitute for capital.

SOURCE: https://techcabal.com/2026/07/23/why-investors-keep-training-women-funding-them/