Women-led businesses in Africa are grappling with a $42 billion financing gap that could limit the continent’s economic potential, the co-founder/Managing Director, Alitheia Capital, Tokunboh Ishmael, has said.
She spoke at the Gender Bonds Toolkit Dissemination Workshop hosted by FSD Africa in Lagos, where she underscored the urgency of gender-lens investing.
In a statement, she said closing this gap could boost Africa’s Gross Domestic Product (GDP) by more than 13 per cent.
In the statement by the firm’s Communications Officer, Anuoluwapo Agboke, Ismael said: “Studies consistently show that gender-diverse companies outperform others by at least 20 per cent.
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“As the world marks the International Day of Women and Girls in Science, we must move beyond rhetoric and focus on practical solutions to address long-standing gender disparities.”
Ishmael said economic exclusion is not just a social issue, but rather an economic misstep. “For an economy that prides itself on growth, it’s ironic how often half of its talent is overlooked, leaving a huge gender gap,” she added.
She called on investors, policymakers, and corporations to dismantle gender-based financial barriers.
“At Alitheia Capital,” she said, “gender-lens investing is not just an idea—it’s a strategy. “More than 70 per cent of our investments go to female-led businesses.”
A key initiative of the firm is its Gender Lens Toolkit, which provides companies with a framework to evaluate gender inclusion at every stage of the investment process.
“We help businesses move from gender-negative to gender-strategic, developing gender action plans that diversify income, boost revenue, and drive down costs,” she explained.
Beyond capital allocation, Alitheia Capital said, among others, is tackling gender disparities in corporate governance and product design:.
Ishmael urged the government and financial institutions to address gender disparities in capital allocation.
“We need policies ensuring that investment capital is not overwhelmingly skewed toward men. Pension funds, insurance companies, and institutional investors must actively consider female-led businesses.
“Most SMEs in Africa are led by women, so when we talk about creating a better business environment, we are directly supporting these enterprises,” she added.
On the International Day, Ishmael emphasised that Africa’s true economic potential can only be unlocked when women were fully included and empowered.