For an economy that prides itself on growth, it’s ironic how often half of its talent is overlooked, leaving a huge gender gap.
Women-led businesses in Africa face a $42 billion financing gap, yet studies consistently show that gender-diverse companies outperform others by at least 20%. If African economies fully embraced inclusivity, GDP could rise by over 13%.
Today, the world marks the International Day of Women and Girls in Science and it’s necessary to move beyond rhetoric and focus on practical solutions that break long-standing limitations.
At the Gender Bonds Toolkit Dissemination Workshop organised by FSD Africa, Techeconomy had an insightful conversation with Tokunboh Ishmael, managing director and co-founder of Alitheia Capital.
She shared her journey in ensuring gender-focused investments, the strategies used to break investor scepticism, and the systemic changes required to promote an inclusive business environment.
Breaking Investor Scepticism on Gender Initiatives
TE: While speaking earlier, you mentioned that it took years to convince investors to support the gender initiative. What strategies were you able to use to break the scepticism behind it or to gain traction for initiatives that address gender-based inequalities?
TI: In the first instance, we showed that there was actually an economic gain and impact from including everybody. When you heard me earlier, I said that everyone should picture their favourite football team playing with just half of the players—were they likely to win? And everybody was like, no, they’re going to lose.
We showed that there was economic potential. The female economy is worth $12 trillion globally. The African economy could have an uplift of over 13% in GDP contribution if we build more inclusive companies and economies.
At the company level, you have better decision-making at boards, better governance, and better ideas that create products benefiting everyone.
Another key thing we did was launch a Gender Lens Toolkit for investing in companies, showing how, at every stage of the investment process, gender is a factor for success.
It provides a framework to rate companies from gender-negative to gender-strategic and guides them in developing gender action plans. These plans help businesses diversify their income, increase revenue, and drive down costs.
Research has shown that gender-diverse companies outperform by at least 20%. In showing this and providing practical guidance on gender-smart investing, we were able to convince investors to come along.
Measuring the Impact of Gender-Focused Investments
TE: With over 70% of your fund investors focused on women, what tools or metrics do you use to measure the long-term impact of this investment on local economies and communities?
TI: Just as I mentioned, we track several key areas:
- Female Founders: We intentionally invest in female-led businesses, which is why we can maintain a portfolio where over 70% of our investments go to women.
- Board Representation: In many companies, boards are overwhelmingly male, with women as the minority or even nonexistent. We work on increasing female representation.
- Employment Practices: We assess hiring policies to ensure more high-level jobs are accessible to women.
- Product Inclusion: We ensure that the products developed by these businesses support not just half of the population but the entire population. Being intentional about creating essential products for female consumers is key.
Beyond Funding: Systemic Changes to Support Women in Business
TE: You mentioned the $42 billion financing gap for women-led businesses in Africa. Beyond funding, what systemic changes or policies do you believe are essential to creating an enabling environment for women?
TI: First of all, we need intentionality—both in investment and policymaking. We need policies ensuring that capital allocation isn’t overwhelmingly skewed toward men. There must be diversity at the investment allocation stage, meaning pension funds, insurance companies, and other investors must actively consider female-led businesses.
Why? Because you know what you know—if investors don’t have diverse perspectives, they won’t naturally identify opportunities that target women.
So, for me, the key elements are:
- Intentionality in investment decisions.
- Diverse allocation of capital at the funding stage.
- A clear goal to ensure Africa reaches its full economic potential through inclusive investing.
Again, the enabling business environment plays a huge role. It’s not just about injecting money into businesses; it’s also about ensuring lower costs of doing business, improved infrastructure, and overall business-friendly policies.
Most SMEs in Africa are led by women, so when we talk about creating a better ecosystem, we are indirectly supporting these women-led businesses.
Solving the Root Cause of Gender Inequality
TE: Many organisations have launched initiatives to bridge gender inequality, yet the gap remains wide. What is the root problem that we need to address?
TI: Money makes the world go round, and we need to move beyond lip service when it comes to capital allocation.
The gender financing gap amounts to billions of dollars. Our fund is just $100 million, which is a drop in the ocean compared to the need.
If we continue prioritising only short-term, high-gain investments, then we’re not serious about sustainable development. Leaders in Nigeria and Africa must put their money where their mouth is.
When leaders talk about Nigeria being a tough place to invest, they should realise that they have the power to change that narrative. Investment in sustainable growth means investing in:
- The future of every African,
- The future of every Nigerian,
- And creating an environment where every citizen can reach their full potential.
Our conversation with Tokunboh Ishmael stressed the need to ensure financial access for female-led businesses. Bridging the gender gap has become an economic necessity.
Today we celebrate International Day of Women and Girls in Science, and it’s time to stop treating gender inclusion as a side issue and recognise it as the foundation for long-term prosperity.
