Women-led businesses in Africa face $42bn fund gap – Alitheia Capital

Women-led businesses across Africa are grappling with a $42 billion financing gap, a shortfall that could be limiting the continent’s economic potential.

According to Tokunboh Ishmael, co-founder and managing director of Alitheia Capital, closing this gap could boost Africa’s GDP by more than 13%.

Speaking at the Gender Bonds Toolkit Dissemination Workshop hosted by FSD Africa in Lagos, Ishmael underscored the urgency of gender-lens investing.

“Studies consistently show that gender-diverse companies outperform others by at least 20%.

“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 stated.

Ishmael pointed out that economic exclusion is not just a social issue, it’s 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 remarked.

Using a sports analogy, she challenged business and Government leaders to rethink financial policies, adding: “Imagine your favorite football team playing with only half of its players, would they likely win?” She answered emphatically, “No.”

To win economically, Ishmael called on investors, policymakers, and corporations to take deliberate steps to dismantle gender-based financial barriers.

She further noted that, “At Alitheia Capital, gender-lens investing is not just an idea, it’s a strategy. “More than 70% of our investments go to female-led businesses,” Ishmael noted.

A key initiative is its Gender Lens Toolkit, which provides companies with a framework to evaluate gender inclusion at every stage of the investment process.

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“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 is tackling gender disparities in corporate governance and product design.

According to her over 70% of Alitheia IDF Fund’s portfolio is invested in female-led businesses, and is working to increase female leadership in corporate governance, where women are often the minority or entirely absent.

She also advocated inclusive hiring policies, encouraging employment practices that ensure more high-level opportunities for women.

“Promoting businesses that design products and services for the entire population, not just half”, she added.

Ishmael urged Governments and financial institutions to be intentional in addressing 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,” she asserted.