Women are often underrepresented in the rooms where investment decisions are made, despite mounting evidence that diversity drives stronger performance. Global studies consistently show that gender-diverse leadership is linked to higher returns, stronger governance, and greater resilience. Gender-smart policies not only advance equity in the workplace, they also strengthen productivity and profitability.
Yet within this growing body of global research, Africa’s story remains underexplored. The continent stands out for its entrepreneurial dynamism and rising pool of investment professionals, but women still face barriers to capital and decision-making power. At the same time, debates around ESG and diversity have become increasingly polarised. In North America, political pushback threatens to relegate inclusion to a “nice-to-have,” whilst in Europe regulators are embedding stricter disclosure requirements. Amid these tensions, one principle remains unchanged: capital shapes outcomes. Who sits at the table influences not only what gets funded, but also who gets funded—and who is left behind.
This is where collaboration across the ecosystem becomes critical. AVCA brings the perspective of the continent’s private capital industry, 2X Global advances global standards for gender-smart investing, and a growing network of capital allocators are channelling resources to drive inclusive growth. Together, we believe the time has come to move beyond representation. What is needed now is reimagination: a systemic shift in how gender diversity is understood, measured, and embedded in the fabric of Africa’s investment ecosystem.
Drawing on new data from over 200 Africa-focused investors, AVCA’s forthcoming Gender Diversity in African Private Capital report offers one of the most extensive mappings of its kind. The results show both encouraging signs and critical gaps.
On the positive side, women comprise 44% of the total Workforce and 38% of Investment Professionals across Africa’s private capital industry. At senior levels, the continent performs better than any other emerging market sub-region: one in three PE firms and nearly two in five VC firms have gender-balanced leadership.
Yet progress falters where influence is greatest. Only 33% of Investment Committee members and 32% of Board members are women. The data also show that representation declines as firms grow, both by headcount and assets under management. These gaps are not symbolic. Firms with gender-balanced Investment Committees are significantly more likely to invest in women-led companies, while those without such diversity tend to reinforce existing inequalities.
The paradox is clear. Representation is visible, but its benefits are not consistently realised. The challenge is not only to bring women into the industry, but to ensure their presence translates into power, allocation, and outcomes.
Representation matters, but it is not enough. Without intentionality, structural change, and accountability, diversity risks being reduced to a headcount exercise. The evidence shows why this matters. In its 2025 review of PE and VC funds in emerging markets, the International Finance Corporation (IFC) found that gender-balanced funds achieve higher returns and lower portfolio write-off rates than male-dominated funds, even after controlling for region, age, and strategy. Similarly, AVCA’s research shows that female-founded and female-led companies in Africa report stronger revenue growth than their peers, including at scale.
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findings reinforce a critical truth: gender diversity is not just about fairness, it is about performance. Diverse leadership produces better decisions, stronger governance, and more resilient businesses. To capture these benefits, the ecosystem must reimagine how inclusion is embedded. That means shifting from surface-level representation to systemic change: aligning incentives, reshaping norms, and holding institutions accountable for outcomes.
For AVCA, this means deepening our role as data provider and convener. For 2X Global, it means advancing standards that help investors align with best practice. For the wider community of institutional investors and ecosystem enablers, it means deploying capital and creating partnerships that catalyse inclusive growth. Collectively, it means charting a new course where gender is not a marginal consideration, but a defining feature of how capital works.
Reimagination requires action across the entire ecosystem. At our Gender Roundtable, hosted during the AVCA Annual Conference in April 2025 in Lagos, industry leaders debated how to make gender goals count. The dialogue reinforced that change will not come from commitments alone, but from embedding inclusion into the structures that govern capital. Building on those discussions, we propose four pathways:
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Leadership & Decision-Making Power |
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Diversity at the top is what shifts outcomes. While Africa’s baseline is relatively strong, women remain underrepresented on Investment Committees and Boards, where allocation decisions are made. Roundtable participants stressed the importance of allyship and inclusive leadership. As Elena Haba of 2X Global put it, “Pick one thing you learned today and share it with someone who is not in the room. Next year, we need to see change reflected in who is speaking on the stage.” The call is clear: it is not enough for women to lead the conversation. Men in positions of influence must become active champions, ensuring gender diversity is embedded at the heart of decision-making. |
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Capital Flows with a Gender Lens |
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Capital must follow conviction. Evidence from both global and African markets shows that women-led businesses deliver strong results, yet they continue to receive a fraction of funding. At the roundtable, Adesuwa Okunbo Rhodes of Aruwa Capital argued that “Incentives matter. Without carry linked to gender impact, change will be limited.” Linking a portion of carried interest and management fees to gender outcomes can align financial rewards with inclusive performance. Larger funds, in particular, must be bold. As Sarah Ngamau of the Moremi Fund urged, “It’s the big players who need to be bold now. Smaller funds have shown what’s possible.” |
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Data and Transparency |
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What gets measured gets managed. Until recently, efforts to track gender in Africa’s private capital industry were fragmented or outdated. AVCA’s new dataset provides a baseline, but progress requires sustained data collection, standardisation, and disclosure. LPs can drive this by demanding gender-disaggregated reporting. GPs can embrace it by tracking outcomes across their teams, ICs, and portfolios. Transparent data builds accountability, benchmarks progress, and ultimately strengthens the credibility of the industry. |
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Ecosystem Collaboration |
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No single actor can shift the system alone. Progress requires collaboration across LPs, GPs, industry bodies, and policymakers. The 2X Challenge has shown how global coordination can mobilise billions for women-empowering investments. Africa can build on this by strengthening regional alliances, sharing case studies, and amplifying best practice. As one roundtable participant put it, “Gender strategy should be on the main stage, where decisions are made.” Mainstreaming gender requires deliberate expansion of who speaks, who acts, and who benefits. |
Achieving gender equality in Africa’s private capital industry does not call for more commitments, but for better ones. Each part of the ecosystem has a role to play in embedding, monitoring, and rewarding diversity as a strategic imperative.
For LPs: Move from passive reporting to active engagement. Incorporate gender into due diligence and tie financial incentives to progress.
For GPs: Set measurable gender targets and report on them transparently. Backing diverse founders starts with building inclusive internal cultures.
For Industry Bodies & Media: Champion best practice, spotlight success stories, and drive peer learning.
The opportunity is bigger than parity alone. More inclusive leadership unlocks stronger businesses and more resilient returns. More diverse portfolios expand access to underserved markets. More collaborative ecosystems create economies that are both productive and fair. The moment has come to shift from representation to reimagination.