By Miriam Ouma and Sheila Cadogan
Trade remains a powerful driver of the global economy. It fuels innovation, sparks collaboration, and connects communities across continents. Yet, despite its scope and potential, trade still falls short of inclusivity. A significant portion of the global population—women traders, manufacturers, and entrepreneurs—remains underrepresented, particularly across Africa. The current disparity in contribution, wherein women account for less than half of the global GDP despite making up at least 50% of the population, highlights a systemic imbalance.
The trade ecosystem has traditionally prioritised an equality-based approach, framing challenges as universal human rights concerns. While admirable in principle, this perspective has often oversimplified the nuanced hurdles women face within trade. A shift towards an equity-based framework that accounts for the inherent differences and challenges unique to women holds the potential to create meaningful and sustainable change.
This shift, particularly in the context of Africa’s trade landscape, could be a turning point for women manufacturers, traders, and entrepreneurs seeking to harness opportunities like digital trade under frameworks such as the African Continental Free Trade Area (ACFTA) and regional trade blocs like the East African Community (EAC) and COMESA.
Equality vs. Equity in Trade
The terms equality and equity are frequently interchanged but address fundamentally different concepts. Equality centres on providing identical treatment for everyone, assuming a level playing field. Although noble, it disregards the systemic and individual constraints that may hinder certain populations’ ability to thrive under uniform conditions.
Equity, on the other hand, assesses these very differences and seeks fairness by addressing specific barriers and disadvantages. For example: Men and women might be subject to the same trade policies on paper; however, women traders are often disproportionately disadvantaged by limited access to finance, cultural stereotypes, and the burden of balancing domestic responsibilities with work. Equity acknowledges these challenges and focuses on providing the tools, resources, and support women need to succeed on their own terms.
Challenges for Women in Trade
The hurdles faced by women entrepreneurs in the trade ecosystem are both systemic and deeply ingrained. Challenges include:
- Access to Finance: Women-led businesses often struggle to secure the capital necessary for expansion. Financial institutions tend to perceive them as higher-risk candidates, limiting their growth potential.
- Stereotypical Gender Roles: Women are disproportionately relegated to informal sectors or lower-paying jobs. Furthermore, societal expectations often keep them burdened with unpaid domestic responsibilities, resulting in “time poverty.”
- Lack of Training Opportunities: Many women do not have access to leadership or managerial training, trapping them in subordinate roles with limited upward mobility.
- Exclusion from High-Skilled, Male-Dominated Fields: Export-heavy industries tend to favour male participation, leaving women out of high-paying opportunities tied to manufacturing and technical trades.
The Role of Digital Trade in Empowering Women
The digital revolution provides a critical pathway to bridge the gaps holding women back in global and regional trade. Digital tools have opened up new opportunities for women, empowering them to overcome traditional barriers and access previously untapped markets. Here are some examples:
- E-Commerce Platforms
With platforms like Jumia, Shopify, and social media marketplaces, women’s businesses can now sell goods and services beyond geographical boundaries. They can connect directly with global buyers and manage logistics digitally, lowering entry barriers to lucrative markets.
- Mobile Money and FinTech Solutions
Services such as M-Pesa and Airtel Money empower women by providing financial independence without relying on traditional banking institutions. These tools make it easier for women traders, especially those in rural areas, to process payments, manage transactions, and build credit histories.
- STEM Education and Digital Literacy
Digital literacy and STEM (Science, Technology, Engineering, and Mathematics) skills are essential for women to fully utilise digital tools. Promoting access to online courses, coding bootcamps, and skill-building workshops ensures women can catch up and compete effectively in the digital trade space.
- Access to Virtual Networks
Digital technology facilitates participation in professional groups, mentorship programmes, and e-conferences. These virtual networks connect women traders with their peers and mentors while providing access to information and resources—vital for growth and development.
- Streamlined Bureaucracy via Digital Governance
Digitisation of key processes can dramatically mitigate bureaucratic barriers. With initiatives like online trade permits and customs declarations, platforms make it easier for women entrepreneurs to comply with regulatory standards, particularly across ACFTA member states.
However, challenges remain. Many women still struggle with access to these technologies due to lack of infrastructure, high costs, or limited awareness. There is an urgent need to address these deficits through targeted policy changes and capacity-building initiatives.
Solutions for Advancing Equity in Trade
The road from equality to equity requires decisive actions and forward-thinking solutions. Here are three actionable steps that governments, trade bodies, and financial institutions can take to pave the way for women traders:
- Policy Interventions
Policymakers must embed equity considerations into national and international trade frameworks like the ACFTA. This includes creating gender-responsive trade policies, allocating funding specifically for women-led businesses, and strengthening public-private partnerships focused on capacity building.
For example, investment in sector-specific training schemes for women in export-heavy industries can boost their skillsets and market access.
- Promoting Digital Access
Bridging the digital divide is vital. Governments and organisations can provide subsidies for digital tools, establish low-cost internet zones in rural regions, and encourage the deployment of affordable digital infrastructure.
Partnerships with tech companies could also offer women entrepreneurs free or discounted access to relevant online platforms, fostering their ability to participate in digital trade.
- Inclusive Financial Initiatives
Financial institutions need to pivot towards gender-responsive lending policies. Credit access could be improved with flexible eligibility criteria and lower interest rates for women-led enterprises. Additionally, introducing peer and financial literacy programmes would better equip women traders to manage their businesses sustainably.
- Promoting Trade Networks and Alliances
Regional alliances like EAC and COMESA should lead efforts to create inclusive women-focused trade networks. Offering mentorships, networking opportunities, and trade fairs focused on women manufacturers and traders would strengthen their ability to compete regionally and globally.
Shifting the Paradigm from Equality to Equity
It’s essential to depart from the one-size-fits-all doctrine often associated with equality. By applying an equity framework, we can create a favourable landscape through which women traders can thrive—accessing the same opportunities not just by receiving equal treatment but by receiving the support tailored to their unique needs.
Advancing equity will not only empower women—it will generate broader economic benefits, foster inclusive growth, and enhance Africa’s competitiveness on the global stage. For stakeholders in the digital trade ecosystem, particularly financial institutions, policymakers, and trade organisations, it’s time to champion equity as the recipe for fairer trade for women.
Brilliant opportunities are on the horizon, but achieving full participation requires decisive action. Together, we can shift the balance from untapped potential to realised accomplishments. Women traders aren’t just part of the trade dialogue—they’re vital to its success.
*This article is an extraction from a paper delivered at the World Trade Forum, 2024, by Miriam Ouma.