Pan-African study streamlines investment in women entrepreneurs

A pan-African trust fund contracted Genesis to investigate ways of facilitating the flow of capital to women-led enterprises in Sub-Saharan Africa through a recently launched $200-million gender lens investment fund.

Gender lens investing (GLI) seeks to address the financing gap for women, estimated by the African Development Bank to be $42 billion for women in Africa. GLI targets businesses that prioritise gender equality, offer products or services that benefit women, or have women in leadership positions.

The thinking behind GLI is that women make up a significant portion of the population and workforce in Africa. They are also more likely to become entrepreneurs than men. Yet they often face barriers to accessing finance and participating fully in the economy. .

GLI is gaining momentum in Africa as investors recognise the potential for positive social and economic impact. According to the Global Impact Investing Network, investments in GLI in Africa increased from $200 million in 2015 to $2.2 billion in 2018.

Genesis’ desktop-based research for the trust fund was based on a macroeconomic analysis that included an assessment of the financial sector and business environment of 15 target markets.

The countries included Kenya, Uganda, Senegal, Ghana, Nigeria, Cameroon, Côte D’Ivoire, Malawi, South Africa, Zambia, Zimbabwe, Tanzania, Ethiopia, Mozambique, and Rwanda.

The research focused on identifying and understanding the economic sectors in which women predominantly operated. It also assessed the readiness of the potential pipeline of businesses that could be targeted for investment. Based on this research, we produced risk and opportunity summaries for each market.

The study enabled the client to streamline and prioritise key markets and industries in East, West and Southern Africa that were recognised as attractive for future investments.