Women on Wealth: Women-led venture capital mobilization in S.Africa

In a recent segment of Women on Wealth, the focus was on the critical role of impact investing in addressing gender disparities, particularly in South Africa. Tshilidzi Matlala, Chief Portfolio Officer for E Squared Impact Investors, shed light on the significance of impact investing in empowering women and the challenges that still exist in the mainstream economy. Matlala highlighted the importance of providing patient capital to women-founded businesses and the need for intentional actions to drive change in the investment space. Impact investing is a key strategy aimed at addressing social issues like poverty and gender disparities. E Squared Impact Investors focuses on supporting entrepreneurship in less transformed areas of society, particularly businesses founded by women or black individuals. Matlala emphasized the need for patient capital, which allows for a longer-term approach to investments, catering to businesses that may take time to deliver expected returns. Traditional finance often prioritizes quick returns, overlooking sectors that require patience and commitment to achieve impact. The conversation delved into the current state of funding for women-owned businesses globally, with only 2% of funding directed towards women-founded businesses. Matlala expressed concern over the lack of progress in this area, attributing it to the composition of decision-making rooms in the investment landscape. He highlighted the dominance of white males in these rooms and the unconscious biases that influence investment decisions. Without intentional efforts to diversify these spaces and hold investors accountable for supporting women-founded businesses, the funding gap is unlikely to narrow. Addressing the need for policy interventions, Matlala discussed the potential impact of regulations mandating a certain portion of funding to be allocated to female-led businesses that meet investment criteria. He referenced initiatives like the pledge developed by Digital Collective Africa, where investors commit to investing a percentage of funds in women-founded businesses. Such initiatives promote accountability and track progress towards gender equality in investment practices. Looking ahead, the discussion touched on the importance of policy-driven solutions to drive meaningful change in the sector. Matlala emphasized the need for a collective effort from stakeholders to transform the investment landscape and bridge the gender gap. The conversation highlighted the urgency of addressing gender disparities and the role of impact investing in advancing women's economic empowerment. As the dialogue continues on empowering women in the investment space, the call for policy action and intentional investment practices remains at the forefront. Stakeholders in South Africa and beyond are urged to advocate for inclusive policies and practices that support women-founded businesses and contribute to a more equitable economic landscape.