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.

In 2021, sustainable bonds surged past $1 trillion in assets under management (AUM)—a win for climate-conscious investors and impact-driven financiers back then. 

However, gender bonds, which directly target economic empowerment for half of the world’s population, are still a rounding error in global capital flows.

Women own 30% of registered businesses in Africa but receive less than 10% of commercial bank financing. Meanwhile, female-led funds are statistically proven to outperform the male-led, yet the investment gap stubbornly continues. 

The irony? The very financial sector that prides itself on numbers is seemingly ignoring some of the most obvious ones.

Hence, the Gender Bonds Toolkit Dissemination Workshop, held on 27th and 28th January 2025 at the Radisson Blu Anchorage Hotel in Lagos sought to address these issues. 

Hosted by FSD Africa in partnership with UN Women, the event assembled financial sector stakeholders to discuss how gender bonds could finally become a mainstream instrument in Africa’s capital markets.

Gender Bonds Toolkit: Experts Call for Inclusive Finance as Only 6% SDGs on Track for 2030

With panel sessions and a fireside chat, the Gender Bonds Toolkit Dissemination Workshop touched on the challenges, opportunities, and strategies required to close the gender financing gap.

Including regulatory frameworks and investor engagement, the discussions revealed a mix of cautious positivity and hard-hitting facts about why capital markets remain sluggish in embracing gender finance—and what needs to change.

These challenges formed the foundation for deep discussions at the workshop, starting with an in-depth look at the Nigerian market.

Thematic Bonds in Nigeria: Market Insights and Opportunities

Panel: Exploring the Opportunity for Thematic Bonds in Nigeria

The discussion kicked off with an overview of Nigeria’s dynamic capital market, where thematic bonds—especially green and gender bonds—are gaining interest. Experts from Renaissance Capital Africa, Cygnum Capital Group, Securities and Investment Services Department (SEC Nigeria) and London Stock Exchange Group (LSEG) delivered insights into the regulatory sector and the role of financial institutions in driving sustainable investment.

Key Takeaways:

• Financial institutions have so far led thematic bond issuance, leveraging development finance institutions (DFIs) and impact investors.
• Nigeria’s SEC has been indispensable in establishing frameworks for green, social, and gender bonds, ensuring compliance with global standards to attract investors.
• Sovereign and corporate issuances in Nigeria, including green sukuks—a new climate finance instrument (green Islamic bond) that has the potential to channel the $2 trillion Islamic Finance market to fund green and sustainable investment projects—and gender-focused programs reveal the country’s growing participation in the sustainable finance ecosystem.
• Challenges remain in investor awareness and ensuring sustained adoption of gender bonds beyond donor-driven incentives.

Alternative Capital Mobilization: Structures, Impact & Lessons Learned

Fireside Chat: Scaling Gender Bonds through Innovative Financial Structures

At the Gender Bonds Toolkit Dissemination Workshop, Panellists from InfraCredit, Aruwa Capital Management, and Symbiotics discussed alternative funding models for gender bonds, emphasizing private capital mobilization and blended finance structures.

Key Takeaways:

• Women-led funds are three times more likely to invest in female CEOs and twice as likely to fund female founders.
• Aruwa Capital has deployed $40 million in assets under management (AUM), with 70% of its portfolio comprising female-led businesses.
• Infracredit’s blended facility has unlocked financing for clean energy projects, benefiting communities without electricity.
• Microfinance institutions (MFIs) are important in gender-focused investing, often serving 100% female clients, showing a clear business case for gender bonds.

From Strategy to Issuance: Strengthening Gender Finance Ecosystems

Panel: Defining Gender Goals, Data Quality & Investor Engagement

This session examined how institutions are structuring gender bonds, focusing on data-driven strategies, investor confidence, and regulatory compliance. Panelists from Access Bank, Absa, and the West African Development Bank (BOAD) shared best practices.

Key Takeaways:

• Access Bank’s “W Initiative” has driven financial inclusion through targeted women-focused banking programs.
• Absa has mobilized $350 million to support women-owned businesses and is leveraging UN Women’s Women Empowerment Principles (WEPs) to shape its gender strategy.
• BOAD’s gender strategy follows a three-pillar approach: (1) Institutionalizing gender in financial planning, (2) Economic empowerment, and (3) Job creation and market access.
• Gender data is necessary: Accurate disaggregation of financial data allows institutions to track the real impact of gender-focused investments.

Lessons from Issuers: Challenges, Innovations & Future Prospects

Panel: Insights from an Issuer’s Perspective

Issuers shared first-hand experiences on scaling through the bond market, engaging investors, and overcoming regulatory limitations. The session featured representatives from FSD Africa, BII (British International Investment), and private-sector issuers.

Key Takeaways:

• Gender bonds require “sweeteners”: Partial or full guarantees, blended financing, and development finance institution (DFI) backing have been essential in securing investor confidence and ensuring successful issuances.
• Credit rating challenges persist: Many issuers struggle with low credit ratings, making it difficult to attract institutional investors without guarantees or risk mitigation mechanisms.
• Investor education is key: While thematic bonds are gaining interest, many local investors still prioritise traditional instruments. Awareness campaigns and engagement strategies are important to promoting demand.
• Thematic bond structuring must ensure targeted impact: Funds raised must be transparently allocated to gender-inclusive businesses and female entrepreneurs, avoiding the risk of “gender-washing.”
• Local currency issuances are essential for market development: Issuing gender bonds in local currency can help mitigate foreign exchange risks and attract domestic investors.

Scaling Up Gender Bonds: The Road Ahead

Panel: Telling the Impact narrative – Impact monitoring and reporting simplified

This session focused on how financial institutions, regulatory bodies, and development organisations can scale gender bonds as a mainstream financing tool in Africa. Key discussions included insights from the London Stock Exchange’s Sustainable Bond Market, African Development Bank (AfDB), and Nigeria’s SEC.

Key Takeaways:

• The London Stock Exchange’s Sustainable Bond Market (SBM) provides a credible listing platform for green, social, and gender bonds. Annual due diligence ensures transparency and credibility, reducing the risk of misallocated funds.
• Multilateral institutions like AfDB play important roles by providing technical assistance, first-loss guarantees, and de-risking mechanisms to encourage more issuances.
• Investor participation needs to expand beyond DFIs: Encouraging local institutional investors, pension funds, and asset managers to integrate gender bonds into their portfolios will be critical to long-term market growth.
• Regulatory clarity and incentives can drive adoption: Policymakers must ensure that frameworks are in place to support issuers while incentivising investors to prioritise gender-focused investments.
• Blended finance and public-private partnerships (PPPs) can accelerate adoption: Combining concessional financing from DFIs with private sector capital can help scale gender bond issuances and create a more sustainable market.

Finally: A Sustainable Future for Gender Finance

The Gender Bonds Toolkit Dissemination Workshop reiterated the need for a well-structured approach to scaling gender bonds in Nigeria and Africa. While there are still challenges—ranging from regulatory issues to investor reluctance—there is an obvious momentum in the market.

Gender bonds go beyond impacting investment tools, they are viable financial instruments that can drive inclusive economic growth. 

With continued collaboration among financial institutions, regulators, and development partners, gender bonds can transition from a niche product to a mainstream funding mechanism, bringing about billions in capital for women-led enterprises and gender-inclusive projects across Africa.

The key to success lies in regulatory support, strong market education, investor engagement, and innovative financing structures. In embedding gender finance into mainstream capital market strategies, Nigeria and Africa can fully leverage sustainable finance to drive economic empowerment and financial inclusion.