In January, the African Private Capital Association (AVCA) released the most comprehensive analysis of gender in African private capital to date. The report covers 218 investors managing 1,972 portfolio companies. For anyone paying attention to performance data, the findings are difficult to dismiss.
Female-led portfolio companies grew revenue 32% year-over-year. Male-led companies grew 14%. Female founders employ 52% women in their teams. Male founders employ 30%. The pattern is consistent: women-led businesses are delivering strong commercial returns while building more inclusive workforces.
Yet these companies receive just 7% of venture capital deal volume in Africa.
The data also shows something interesting about structure. When Investment Committees become majority-female, allocation to women-led companies jumps to 48%. That is six times higher than the rate at male-dominated funds. Even more telling: when male-dominated funds simply set measurable gender targets, their investment in women-led businesses rises from 1% to 14%.
Africa has the highest rate of female entrepreneurship in the world. 24% of working-age women are starting businesses, compared to 17% in Latin America and 11% in Europe. The entrepreneurs exist. The performance data exists. What has been missing is intentional capital allocation.
This is why Alitheia Capital has always focused on how investment decisions are made, not just what we invest in. IC composition, portfolio construction, active ownership. These structural choices determine outcomes.
AVCA has done the important work here. AVCA isn’t just presenting a problem. They’re presenting proof that fixing it is profitable.
Thank you to AVCA for leading with evidence and giving the industry a mirror we can’t look away from.