Alitheia IDF Fund LP
Theory of Change
Challenge and Context
Women entrepreneurs in developing economies lack access to finance and are legally disadvantaged, including through restrictions on owning or managing property. Recent estimates suggest that women entrepreneurs face a $1.5 trillion financing deficit. The transformation of African economies relies on removing the financial, institutional and social barriers for women to fully participate. In Sub-Saharan Africa 29 percent of businesses are women-owned, but they face chronic underinvestment. For instance, in Nigeria 41 percent of women are entrepreneurs but they only receive 2 percent of traditional financing.
Description
AIF makes equity and quasi-equity investments in high-growth small and medium businesses in Ghana, Lesotho, Nigeria, South Africa, Zambia and Zimbabwe. As the first private equity fund manager in Africa prioritizing growth-stage companies with gender diversified management teams, AIF is breaking new ground in gender-lens investing.
Impact
AIF will impact the lives of women and communities in Sub-Saharan Africa by creating jobs, improving value chains and advancing diversified management teams. The fund will advance the model for gender-lens investing in the region.
Expected Outcomes
- Provide 10–15 women-led businesses with hands-on support and capital to expand
- Bring over 75 women into leadership positions at portfolio companies
- Enable investees to attract $170 million in follow-on capital
Why SEDF?
SEDF’s investment advances Open Society’s work in Africa by supporting women and youth to access capital.