A groundbreaking report from the African Private Capital Association (AVCA) reveals that the continent is setting a global benchmark for gender inclusion within private capital investment teams. However, the study also uncovers a significant gap when it comes to women leading the companies that receive this investment.
Africa's Strong Performance in Investment Teams
Released on January 14, 2026, the 'Gender Diversity in African Private Capital' report provides one of the most detailed analyses of its kind. It examined data from 218 private capital investors, 3,099 industry professionals, and 1,972 portfolio companies across the continent.
The findings are encouraging for representation within the firms themselves. Women make up 38% of investment professionals and 33% of investment committee members in African private capital. These figures surpass global averages, which stand at 35% and a much lower 12%, respectively.
Furthermore, women represent 44% of the overall workforce in these firms and hold 32% of board seats. This positions Africa above the critical one-third representation benchmark at various organisational levels and ahead of international norms.
The Scaling Gap and Leadership Challenge
Despite the overall positive picture, the AVCA report highlights a troubling trend: the gender gap widens dramatically as firms grow larger. Smaller firms with fewer than five employees are close to achieving parity, with women constituting 50% of investment teams and 44% of committees.
In stark contrast, larger firms managing assets over $1 billion report significantly lower female representation—just 29% on investment teams and 19% on committees. Given that these major firms control the lion's share of capital deployed across Africa, this disparity has profound implications for where and how money is invested.
The most pressing challenge, however, lies beyond the fund managers. Female leadership within portfolio companies remains severely limited. Only 5% of Africa's private capital-backed companies are founded by women, and a mere 11% have a female Chief Executive Officer.
The Business Case for Diversity
The report provides compelling evidence that gender-diverse leadership is not just equitable—it's good for business. Female-founded companies employ an average of 48% women and achieved impressive 50% revenue growth between 2023 and 2024.
Companies with mixed-gender founding teams also showed strong performance, employing 46% women and posting the highest overall revenues alongside 40% growth in the same period. The AVCA states this data underscores a clear link between diverse leadership, inclusive employment, and robust business growth.
Commenting on the findings, Abi Mustapha-Maduakor, Chief Executive Officer of AVCA, acknowledged the continent's progress but emphasised the work ahead. "This report shows that Africa is well-positioned globally on gender diversity in private capital," she said. "However, representation alone is not sufficient. The real challenge is ensuring that diverse leadership results in fair access to capital for women founders and executives."
Mustapha-Maduakor reaffirmed AVCA's commitment to collaborating with industry stakeholders to strengthen practices, improve data collection, and increase accountability. The goal is to build a more inclusive, competitive, and resilient investment ecosystem across Africa.
