Africa Nziza: More women needed in investment finance

The world of investment finance continues to grapple with a significant gender gap, with women being underrepresented in key decision-making roles. According to the latest figures by the World Economic Forum, only 20% of the members of the CFA Society in Africa are women. This disparity is even more pronounced when it comes to venture capital financing for women-led startups, with less than 10% globally and less than 2% in Africa. Umulinga Karangwa, Founder of Africa Nziza, sheds light on the challenges faced by women in the finance world and the impact it has on investment decisions. Karangwa emphasizes the need for more women in capital allocation roles, such as investment managers and venture capitalists, to address the funding gap for women entrepreneurs. She points out that when women have limited access to financing, it hinders the growth of their businesses and ultimately leads to job losses. In Africa, where women have the highest rates of entrepreneurship globally, this issue is particularly acute due to the societal norms that limit their financial independence. To address this growing concern, Karangwa advocates for initiatives like scholarships and gender-specific approaches in finance. While bridging the gender gap in investment finance may take time, progress is being made. The percentage of women in the CFA Society has increased from 17% in 2015 to 25% today, indicating a positive shift towards gender diversity. Some companies are also embracing gender-specific strategies, such as investing in businesses with a certain percentage of women employees or board members. These initiatives are steps in the right direction, but Karangwa acknowledges that more work needs to be done to achieve true gender equality in finance. While the timeline for closing the gender gap remains uncertain, she remains hopeful for a future where more African women have access to the funding they need to succeed in the world of finance.