Female-led firms top revenue growth in Africa’s private capital market – Report

Female-led portfolio companies in Africa’s private capital sector recorded faster revenue growth than male-led firms, according to new data from the African Private Capital Association.

The recently released Gender Diversity in African Private Capital report reveals that businesses led by female-led companies experienced a 32 percent increase in revenue, climbing from $33 million in 2023 to $44 million in 2024. By comparison, male-led firms grew revenue by 14 percent, from $32 million to $37 million over the same period.

The figures, drawn from private equity and venture capital-backed companies across multiple sectors and African markets, reinforce the association’s position that diversity is not merely a representation issue but a performance driver.

It added that companies with women at the helm report higher levels of female employment as well.

It said, “On average, female-founded companies employ 52 percent women, significantly higher than the 44 percent at companies with mixed-gender founders and the 30 percent seen in male-founded firms.

The AVCA report disclosed that gender diversity across Africa’s private capital ecosystem varies widely and is shaped by organisational hierarchy as well as structural characteristics such as firm size, asset class focus, and geographic presence.

Still, women maintain a visible presence across all levels of the industry’s workforce. Despite this participation, parity remains incomplete because leadership roles continue to be largely male-dominated.

“Women account for an average of 44 percent of the total workforce and 38 percent of investment teams across Africa’s private capital industry. These figures suggest a moderately inclusive pipeline at entry and mid-career levels, reflecting broader improvements in female education and professional access across the continent and indicating that fund managers are increasingly recruiting from more diverse candidate pools,” it said.

In global comparison, Africa’s 38 percent representation at the investment team level stands above the global average of 35 percent and significantly ahead of Asia and Europe, both at about 24 percent.

However, the report pointed out that progression into leadership positions is less consistent. Women represent only 33 percent of investment committee members and 32 percent of board members. Although these levels remain higher than global benchmarks, about 12 percent for investment committees and 21 percent for boards, they still reveal a narrowing pipeline as women advance.

Representation is even more limited at the top. Only 18 percent of surveyed private capital investors are led by female chief executives, closely aligning with global averages that show women occupy roughly 17 percent of C-suite roles. The decline in representation at committee and board levels carries strategic implications because these positions influence capital allocation decisions and organisational culture.

AVCA notes that while Africa’s performance on female participation surpasses many regions, structural barriers, whether cultural, institutional, or operational, continue to limit women’s access to high-level decision-making roles. At the same time, the continent’s comparatively strong baseline suggests the path to parity may be shorter than elsewhere.

Globally, progress on gender inclusion in private capital has been steady but uneven. By 2023, women held nearly half of entry-level positions in private equity firms worldwide, yet occupied only about one in five managing director roles.

A study by the International Finance Corporation found that gender-balanced senior leadership teams remain rare across emerging market funds, accounting for just 13 percent of partners in private equity firms and 16 percent in venture capital firms.

At the current pace, the IFC report estimates it could take 38 years to reach gender parity in senior leadership within private capital, compared with 26 years for women in mid-market corporate roles more broadly.

This leadership bottleneck is not confined to any single region. Authors of the AVCA report revealed that in North America and Europe, women’s representation in senior investment roles rose only marginally from 11.9 percent in 2020 to 14.7 percent in 2024.

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Fundraising data shows similar disparities, with female general partners typically raising smaller funds and facing longer fundraising cycles than their male counterparts despite comparable track records.

Disparities also appear at the portfolio company level. A 2022 study by Boston Consulting Group found that 45 percent of private equity-backed firms had all-male boards, compared with only 12 percent among publicly listed companies.

Follow-on research by LCap Group showed that gender imbalances at the senior executive level can widen during private equity ownership. In its sample of European portfolio companies, female leadership representation declined from 20 percent to 16 percent during the holding period, partly because male-dominated fund managers tended to appoint similarly imbalanced leadership teams.

Within this global context, Africa presents both challenges and opportunities. The continent has one of the highest rates of female entrepreneurship worldwide, with about 24 percent of working-age women engaged in early-stage business activity, compared with 17 percent in Latin America and 11 percent in Europe.

Yet historical funding flows have not matched this entrepreneurial dynamism. AVCA data indicates that women-only founding teams received just 7 percent of venture capital deal volume and only 2 percent of total deal value between 2020 and the first half of 2025.

Recent developments suggest some progress. Several gender-lens investment vehicles focused on Africa have achieved successful fund closes, and development finance institutions are increasingly applying criteria from the 2X Challenge when evaluating fund managers.

However, macroeconomic pressures—including currency volatility and reduced participation from some global limited partners—are prompting investors to reassess risk and capital allocation strategies, raising questions about how consistently diversity priorities will be maintained.

AVCA highlighted that establishing a continent-wide baseline for gender inclusion remains critical as markets evolve.

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The significance extends beyond equity considerations. Data from the International Labour Organisation indicates that when women reach senior leadership roles, labour productivity can rise by as much as one percentage point annually.

“Separate projections suggest that narrowing gender gaps could increase Africa’s collective GDP by about 10 percent above baseline if countries matched the progress of their best-performing peers,” it said.