Female-Led Firms in Africa's Private Capital Show Faster Growth

• Female-led companies in Africa's private capital grew revenue faster than male-led firms.
• Female-led businesses saw a 32% revenue increase, from $33M to $44M
• Male-led firms grew revenue by 14%, from $32M to $37M

In a report from the African Private Capital Association (APCA) titled "Gender Diversity in African Private Capital", it has been revealed that portfolio companies with female leadership are achieving greater revenue growth than those with male leadership.

In fact, female-led portfolio companies had an increase of 32 percent in revenue from $33 million (2023) to $44 million (2024) compared to 14 percent for male-led portfolio companies ($32 million in 2023 to $37 million in 2024).

According to the report, in terms of private equity and venture capital, statistical analysis also supports the finding that diverse teams perform better (this does not only refer to the numerical aspect of diversity but also refers to actual performance).

Moreover, on average, female-founded portfolio companies employ many more females than do male-founded and mixed-gender-founded companies.

The report pointed out that gender diversity in Africa's private capital industry is highly variable, depending on organizational structure, size, asset class focus, and geographic reach. While women are present in all levels of the industry, leadership positions are still largely male-dominated.

Women account for 44 percent of the overall workforce and 38 percent of investment teams in Africa's private capital industry.

This indicates a moderately inclusive pipeline at entry and mid-levels, which is a result of increased female education and professional engagement across the continent. Compared to Africa's 38 percent at the investment team level, the global average is 35 percent, and the industry is ahead of Asia and Europe, which are 24 percent each.

But the pace of progress towards leadership positions is slow. Women account for 33 percent of investment committee members and 32 percent of board members in Africa's private capital industry.

While this is higher than the global average of 12 percent for investment committees and 21 percent for boards, it shows a constricted pipeline as women move up.

The report further emphasizes the importance of a continent-wide baseline for gender inclusion as African markets continue to evolve; and that promoting gender equity at the leadership level could yield huge economic dividends.