Africa leads on private capital diversity, but women still receive less funding

This imbalance has shaped the prevailing narrative around gender and capital on the continent. However, a new report suggests that while funding outcomes remain unequal, the structure of Africa’s investment ecosystem is changing in ways that challenge common assumptions.

A shift in who controls capital decisions

In January 2026, the African Private Capital Association (AVCA) released a report titled Gender Diversity in African Private Capital, offering a more nuanced view of gender representation in African investing. While most capital still flows to male founders, the report shows that women are increasingly represented among the people making investment decisions.

Based on data from 218 investment firms managing close to 2,000 portfolio companies, AVCA found that women account for 44% of the private capital workforce in Africa and 38% of investment professionals. These figures are notably higher than the global average, where women make up about 35% of investment teams, and far exceed Europe’s regional average of 24%.

The gap widens further at the highest decision-making level. Women hold 33% of Investment Committee seats in Africa, nearly three times the global average of 12%. These committees are responsible for final investment approvals, making their composition a critical factor in determining where capital ultimately flows.

AVCA’s findings show a clear relationship between the makeup of investment committees and funding outcomes. Firms with majority-female investment committees allocate capital to women-led companies at far higher rates than male-dominated firms. Nearly half of the portfolio companies backed by majority-female committees are women-led, compared to just 8% in firms where men dominate decision-making.

Despite this, overall funding patterns remain skewed. The reason, according to the report, lies in how capital is distributed across the ecosystem rather than in a lack of gender awareness or intent.

The scale problem limiting impact

The highest levels of gender diversity in Africa’s private equity and venture capital space are concentrated in smaller firms. These firms often have progressive investment policies and diverse leadership but manage relatively small pools of capital. As a result, their ability to influence aggregate funding trends is limited.

In contrast, the largest firms on the continent, which deploy the majority of available capital, are still more likely to be led by male-dominated investment committees. Their investment decisions continue to shape the broader funding environment, slowing progress toward more balanced capital allocation.

This structural imbalance helps explain why Africa can lead globally in investment-team diversity while still producing uneven outcomes for women founders.

The economic case for gender-diverse leadership

Beyond questions of equity, AVCA’s data points to strong performance advantages associated with gender-diverse leadership. Between 2023 and 2024, female-led portfolio companies recorded revenue growth of 32%, more than double the 14% growth seen among male-led peers.

Employment data tells a similar story. Women-founded companies employ an average workforce made up of 52% women, compared to 30% in male-founded firms. This suggests that diversity at the leadership level has tangible effects on hiring practices, income distribution, and overall economic participation.

A growing group of female-led investment firms across Africa is actively working to close the funding gap by embedding gender considerations into their investment strategies.

Aruwa Capital Management

Founded in 2019 by Adesuwa Okunbo Rhodes, Aruwa Capital Management is a Lagos-based private equity fund focused on businesses that serve women or are founded by women. In April 2025, the firm raised $35 million and has invested in 11 companies. Its portfolio includes an $11 million Series A investment in cold-chain logistics provider Koolboks, a $1.5 million investment in safety footwear manufacturer Yikodeen, $2 million in Fastizers, and participation in a $20 million Series A round for OmniRetail.

Ingressive Capital

Maya Horgan Famodu launched Ingressive Capital in 2017 as a seed-stage venture fund designed to connect African startups with global capital and business opportunities. The firm has backed several high-profile startups, including Mono, REasy, and SehaTech. In 2020, Ingressive Capital introduced a $10 million fund to scale its investments in high-growth technology companies.

Alitheia Capital

Alitheia Capital was co-founded in 2007 by Tokunboh Ishmael and Olajumoke Akinwunmi. The firm focuses on growth-stage SMEs that are women-led, women-owned, or serve the women’s economy. It manages the $100 million Alitheia IDF Fund, the largest gender-lens private equity fund in Africa. Alitheia has led major investments in companies such as SweepSouth, Reelfruit, and Haul247.

Janngo Capital

Established in 2018 by Fatoumata Bâ, Janngo Capital is one of Africa’s largest gender-equal venture capital funds. Its second fund closed at approximately $78 million in 2024. The firm has invested in companies including Sabi, Expensya, and Jobzyn, while maintaining a commitment to allocate half of its capital to women-led businesses.

Sahara Impact Ventures

Founded in Ghana in 2020 and led by Yvonne Ofosu-Appiah and Mandy Nyarko, Sahara Impact Ventures backs early-stage SMEs working at the intersection of gender, climate resilience, and access to essential services. Its investments include Wahu Mobility, Medpharma Alliance, and Agriarche, reflecting a strategy that links climate action with inclusive economic growth.

Chui Ventures

Chui Ventures, founded in 2021 and led by Joyce-Ann Wainaina, closed its first fund at $17.3 million. The firm focuses on mass-market solutions across fintech, healthtech, logistics, and consumer sectors. Its portfolio includes Pricepally, Leta, and Uncover, with investments spread across multiple African markets.

Five35 Ventures

Founded in 2020, Five35 Ventures is a pan-African venture capital firm focused on pre-seed and seed-stage startups with female-focused or gender-diverse teams. In December 2025, the firm secured additional funding to expand its investment activities. Its portfolio includes BuuPass, a Kenyan transport-tech startup backed at the pre-seed stage.

Read More: Shell Foundation and 500 Global Launch Accelerator to Power Africa’s Climate Tech Ecosystem

From diversity metrics to capital redistribution

AVCA’s findings suggest that Africa has already built a stronger foundation for gender diversity in private capital than many developed markets. The remaining challenge is scale. Until the continent’s largest capital allocators adopt the inclusive practices already demonstrated by smaller, female-led firms, funding outcomes are unlikely to shift meaningfully.

If that transition happens, Africa has the opportunity not just to lead on diversity metrics but to redefine how capital allocation drives sustainable growth, inclusion, and long-term performance across its startup ecosystem.