Gender-Inclusive Investment Could Boost Africa’s GDP by 13 Percent
Lagos, Nigeria — 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.
Bridging the Gender Gap: A Business Imperative
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:
“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.
Alitheia Capital: Leading the Gender-Lens Investment Movement
At Alitheia Capital, gender-lens investing is not just an idea—it’s a strategy. “More than 70 percent of our investments go to female-led businesses,” Ishmael revealed.
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. “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:
- Female Founder Investments: Over 70% of Alitheia IDF Fund’s portfolio is invested in female-led businesses.
- Board Representation: Working to increase female leadership in corporate governance, where women are often the minority or entirely absent.
- Inclusive Hiring Policies: Encouraging employment practices that ensure more high-level opportunities for women.
- Product Inclusion: Promoting businesses that design products and services for the entire population, not just half.
A Call for Policy and Investment Reform
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.
“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.
As the world observes the International Day of Women and Girls in Science, Ishmael emphasized that Africa’s true economic potential can only be unlocked when women are fully included and empowered.