Diversity and Inclusion: More Than Buzzwords

The global economy is facing an unprecedented decline, with inflation rates higher than in previous decades. The conflict in Ukraine and the fast pace at which the world is adopting digital technologies seem to be contributing to disrupting life as we have all known it, from commodity supply to food and energy prices and amidst this, we are still working towards complete recovery from the COVID-19 crisis. The International Monetary Fund also projects the 2023 growth rate to be 2.7%, the lowest recorded since 2001. Now is the time to incorporate diversity, inclusion, and equity into fundraising to create a more supportive ecosystem for women who need to grow their businesses, drive innovation on the continent and contribute positively to the world’s economy. 

We are at a critical juncture in history where the movement for equity is losing momentum even though there has been a lot of buzz around prioritizing diversity equity & inclusion. A number of companies also claim to embed these initiatives into the core of their business. The funding disparity faced by female-led startups in Africa is one gap that keeps getting wider. Last year, only 4% of female CEOs received funding compared to their male counterparts, which was 25 times lower. This lack of funding has real-world consequences, as revealed by Max Cuvellier in his recent publication, "The Dreaded Gender Analysis" where female CEOs in 2022 received only $188 million compared to $290 million in 2021, a mere 3.9% to 6.3%. Addressing this funding disparity is crucial not only for promoting gender equality and supporting women entrepreneurs but also for creating a more diverse and resilient economy. In the public sector, policymakers widely acknowledge the strong connection between resilience, equity, and inclusion. Data and research have proven that fostering a more equitable and inclusive society is essential for the success of any economy aimed at promoting resilience and recovery. However, the main challenge for women in the African tech space is the lack of gender diversity in the investment community. 

Many investors still hold implicit biases against women, leading them to overlook or underinvest in female-led startups. To address this funding gap, it is crucial to incorporate the principles of diversity, inclusion, and equity into fundraising by actively seeking out and supporting female-led startups, as well as creating a supportive ecosystem for women in tech. One way to do this is to increase the number of female investors and mentors in the tech industry. By having more women in decision-making positions, female-led startups will have a better chance of securing funding and support. Additionally, diversity training and the promotion of inclusive policies can help to reduce implicit biases and increase investment in female-led startups. Another way to support women in tech is through targeted initiatives and programs aimed at promoting and funding female-led startups. For example, there are now several accelerators and venture capital firms that specialize in investing in women in tech, and providing them with the resources and support they need to grow their businesses.

In conclusion, the growth of an economy is a complex and multifaceted process that is influenced by many different factors. However, one key factor that is increasingly being recognized as crucial is the promotion of equity and inclusion. By addressing the funding disparity faced by female-led startups and promoting diversity and equality, we can lay the foundation for a more robust and resilient economy that can continue to grow and thrive. By prioritizing diversity, equity and inclusion initiatives and creating more equitable and inclusive societies, we can unlock the full potential of our economies and secure a better future for generations to come.