Gender Lens investing is not Simplifying Investment Criteria

In celebration of Women’s Day this month of March, Diana Gichaga, Managing Partner of Private Equity Support sat down with ?Carolyne Sigei, Investment Manager, Iungo Capital B.V to discuss Gender Lens investing and how this is impacting access to finance for women led and owned businesses.

DG: Why is Gender Lens investing important, specifically?for SMEs in Africa?

CS: Gender Lens investing is important as it seeks to address the inherent biases against women that exist worldwide.

Gender Lens is a timely agenda for SMEs in Africa as it not only aims to create access to finance for women centered businesses but also promotes direct and indirect benefits for the larger community.

Gender Lens Investing also allows the incorporation of other important aspects such as women leadership, support to enterprises, workforce equality and decent work opportunities.

?DG: There are several initiatives targeting women led/owned businesses yet the funding deployed still lags behind. What can we do to increase the amount of funding deployed to women owned or led businesses?

CS: "Investors can be intentional about designing funding products with specific criteria targeting women owned/led businesses. This does not mean simplifying the criteria but breaking down the criteria to describe the different aspects that constitute Gender Lens investing."

There can also be increased partnership between investors and technical assistance providers. Where some women businesses do not immediately meet the qualifying criteria, a focused pre-investment exercise can be introduced to ensure they are ready for investment in the near future.

DG: What are some of the positive changes you have witnessed in how women led or owned businesses are funded?

CS: It has been very rewarding seeing various investors both big and small publicly declaring their support for women led/owned businesses.

Through this, the institutions have become catalysts in creating awareness amongst their peers. Increasingly, investors have included in their assessment a broadened criteria seeking to identify the opportunities that lie in investing in women owned/led businesses.

DG: Thanks Carolyne for sharing these insights. Any parting remarks on this

"Everyone has a part to play in advancing the Gender Lens agenda. As an investment professional I have a personal commitment to expand my deal sourcing strategies to target and include women owned/led businesses," Carolyne Sigei