Policy Research Reports
Gender Equality and Inclusion in MENA: Bridging Gender Gaps in Energy and MSMEs
No.
PRR 59
Publisher
ERF
Date
March, 2025
Background
The Middle East and North Africa (MENA) region continues to grapple with entrenched gender disparities, particularly in labor market participation, economic empowerment, and access to energy. Women and youth in MENA face systemic barriers that limit their ability to engage in entrepreneurship, participate in the energy transition, and fully integrate into the micro, small, and medium-sized enterprises (MSMEs) sector. Despite progress in education, where female enrollment in tertiary education often surpasses that of men, women’s participation in the workforce remains among the lowest globally. Female business participation in MENA stands at only 19%, significantly below the global average of 34%, with stark variations across the region. Countries such as Tunisia and Bahrain report relatively higher levels of female entrepreneurship, whereas others, such as Yemen and Jordan, exhibit alarmingly low female business ownership rates. While some MENA nations have made policy advancements to promote gender equality, others remain constrained by legal and socio-cultural barriers that hinder women’s economic participation.
Energy access and the clean energy transition are critical components of sustainable economic development in MENA, yet they remain highly gendered. Women disproportionately bear the burden of energy poverty, primarily due to their roles in domestic labor, while also being underrepresented in the formal energy sector. Research suggests that renewable energy (RE) could provide new opportunities for women’s employment and entrepreneurship, yet the gender gap in STEM education, cultural biases, and limited access to finance prevent women from fully participating in this transition. MSMEs, which account for a substantial portion of economic activity in MENA, play a crucial role in fostering economic growth, job creation, and innovation. However, MSMEs owned by women and youth face unique challenges, including financial exclusion, legal restrictions, and a lack of targeted support mechanisms. Given the interconnections between gender, MSMEs, and energy, this study aims to provide a cross-thematic analysis of gender equality and inclusion in six MENA countries—Egypt, Jordan, Lebanon, Morocco, Sudan, and Tunisia—highlighting both the barriers and opportunities for integrating women and youth into the clean energy and MSME sectors.
Methods
The study employs a comprehensive mixed-methods approach, incorporating both qualitative and quantitative analyses to assess the gender-energy-MSME nexus in MENA. A thorough literature review examines existing research on gender, MSMEs, and energy transition policies across the region, identifying key barriers and knowledge gaps. Country-specific case studies provide a nuanced understanding of gender disparities in entrepreneurship, access to finance, labor market participation, and renewable energy opportunities in Egypt, Jordan, Lebanon, Morocco, Sudan, and Tunisia. Data collection draws from national statistics, international reports, and labor force surveys to assess economic indicators, labor market trends, and gender gaps in MSME ownership and financing. The study also includes an assessment of legal and regulatory frameworks that influence gender inclusion in MSMEs and the energy sector, highlighting policy best practices and areas in need of reform.
A key methodological component involves stakeholder mapping, identifying the roles and influences of governments, financial institutions, civil society organizations, and international donors in shaping gender-responsive policies. The study further explores the intersection of education, digitalization, and the clean energy transition, particularly examining how access to STEM education and digital tools can enhance women’s participation in entrepreneurship and energy-related employment. Comparative analyses between MENA countries and global case studies provide additional insights into successful strategies for gender inclusion in the clean energy economy. By integrating both qualitative narratives and quantitative data, the study presents a holistic perspective on the challenges and opportunities at the intersection of gender, MSMEs, and energy transition in MENA.
Findings and Recommendations
The findings reveal significant gender disparities in economic participation, entrepreneurship, and access to energy resources across the six studied countries. Women in MENA face deeply rooted socio-cultural barriers, legal restrictions, and financial exclusion, limiting their ability to engage in MSMEs and benefit from the energy transition. The informal sector remains a dominant source of employment for women, yet it lacks social protections, financial access, and policy support. Labor force participation rates for women are exceptionally low, and the gender wage gap remains substantial. In some countries, restrictive labor laws prevent women from engaging in certain sectors, reinforcing occupational segregation. Women also face disproportionate unpaid care responsibilities, further limiting their entrepreneurial and employment opportunities.
The study highlights the role of MSMEs in providing economic opportunities for women and youth, but access to finance remains a major constraint. Women-owned MSMEs in MENA struggle to secure investment due to discriminatory financial policies, lack of collateral, and limited financial literacy. The legal and regulatory environment often reinforces these barriers; for instance, inheritance laws restricting women’s land ownership reduce their ability to access credit. The COVID-19 pandemic further exacerbated gender disparities, with female-led businesses experiencing higher closure rates due to financial insecurity and increased unpaid care burdens. However, digitalization presents an emerging opportunity for women entrepreneurs, as digital tools can enhance financial inclusion, market access, and business resilience. Countries such as Morocco and Tunisia have made strides in promoting digital literacy and women’s entrepreneurship, but the digital gender divide remains a pressing challenge, particularly in rural areas.
In the energy sector, the clean energy transition presents both opportunities and challenges for gender inclusion. While renewable energy jobs are growing, women’s participation in the sector remains limited due to gender biases in STEM education and employment. The share of women in MENA’s RE sector ranges from 7% to 9%, significantly below the global average of 32%. However, research suggests that integrating a gender lens into energy policies can enhance the effectiveness of clean energy initiatives. Women’s leadership in energy entrepreneurship can drive inclusive growth, but targeted policies and financial mechanisms are needed to support female entrepreneurs in the sector. Public-private partnerships, international climate funds, and gender-sensitive energy policies can help bridge these gaps and create inclusive opportunities in the renewable energy industry.
The report provides several key policy recommendations. Governments must prioritize gender-inclusive policies in economic and energy planning by removing legal barriers, enhancing financial access for women entrepreneurs, and investing in gender-responsive labor market reforms. Financial institutions should develop tailored financial products for women-owned MSMEs, such as low-interest loans and collateral-free credit schemes. Policymakers must also integrate gender considerations into national energy strategies, ensuring that women benefit from renewable energy investments and employment opportunities. Enhancing STEM education and digital skills for women and youth is crucial to expanding their participation in high-growth industries, including renewable energy and digital entrepreneurship. International stakeholders should support gender-inclusive policies through technical assistance, funding for women-led energy enterprises, and cross-border knowledge-sharing initiatives.
The study concludes that gender equality and inclusion are essential for driving sustainable economic growth and advancing the clean energy transition in MENA. While significant barriers persist, targeted policy interventions, financial reforms, and educational advancements can create pathways for women and youth to engage in MSMEs and energy sectors. By addressing systemic gender inequalities, MENA countries can unlock the full potential of their human capital, promote inclusive economic development, and accelerate progress toward a sustainable and equitable energy future.
Conclusion
The study highlights persistent gender disparities in MENA’s MSMEs and energy sector, driven by legal, financial, and socio-cultural barriers. Despite progress in education and digitalization, women remain underrepresented in entrepreneurship and renewable energy. The clean energy transition offers a key opportunity for inclusive growth, but achieving this requires gender-responsive policies, improved financial access, and targeted capacity-building. Addressing these barriers will unlock economic potential, enhance resilience, and drive a more sustainable and equitable energy future for the region.
Speakers
Sara Ragab
PhD Program, Hubert H. Humphrey School of...
Authors
Esraa Mahmoud
Ph.D. Student, Humphrey School of Public Affairs,...