The African continent is witnessing a shift in the investment landscape, thanks to the vision and dedication of amazing people like Adesuwa Okunbo Rhodes, the Founder and CEO of Aruwa Capital Management. In our recent discussion with Adesuwa, she highlighted the significance of empowering female entrepreneurs and investors through gender lens investing, an approach that has long been overdue.
Closing the Gender Disparity in the African Ecosystem
Despite constituting over 50% of the population, women have consistently faced a lack of resources and opportunities, which has hindered their growth and potential. The gap in access to capital is strikingly evident, with female entrepreneurs receiving only 4% of capital and 25 times less than their male counterparts. Adesuwa seeks to change this narrative by successfully raising a $20 million fund and investing 75% of it with a 100% gender lens strategy.
This strategy aims to provide female entrepreneurs with much-needed capital, opening up promising arbitrage opportunities in the process. With less than 20 female-led and female-founded funds successfully closed, Adesuwa acknowledges the importance of female capital allocators on the continent. By launching Aruwa Capital Management’s inaugural female fund manager list, she showcases the potential of women as capital allocators and the positive trickle-down effect they can have on profitability, risk reduction, and return enhancement.
Cherry-Picking the Best Female-Led Businesses
Adesuwa’s commitment to bridging the gender gap involves carefully selecting the best female-led businesses to invest in. Research indicates that such businesses can be just as profitable as their male counterparts when given appropriate resources and support. In fact, female-led businesses have been found to contribute between $250 billion and $300 billion to Africa’s GDP, highlighting their potential to drive the continent’s economic growth.
To make informed decisions and create a more balanced and equitable future, Adesuwa believes in engaging a diverse set of perspectives. Women are known to take calculated risks and base their decisions on data and track records, making them valuable contributors to the decision-making process.
Empowering Female Entrepreneurs with Capital
Addressing the global crisis of underrepresentation of women in the investment sector is crucial. In the US alone, only 1.9% of venture capital funds went to female entrepreneurs in 2020. By focusing on gender lens investing in Africa, Adesuwa aims to unlock the continent’s potential of adding $316 billion to its GDP. This necessitates conversations about empowering female fund managers, general partners, venture capitalists, and other investors.
Adesuwa’s journey involved learning from her initial failure in raising a fund and establishing Aruwa Capital Management as a gender lens fund. She emphasizes the need for a clear understanding of the problem, an active pipeline of investments, a solid team, and effective communication of the fund’s positive societal impact.
Listen to the full Interview: