The Managing Partner of Aruwa Capital, a Lagos-based equity and investment company, Adesuwa Okunbo-Rhodes, has complained about the funding gap women-focused businesses are grappling with.
She argued that businesses managed by women make up 40% of all small and medium enterprises in Africa.
In a press statement made available to The PUNCH, Rhodes pointed out that women regrettably received only 1% of startup capital, attributing this to the lack of female capital allocators in the region.
She said Aruwa Capital was creating funds to invest in innovative businesses that are founded or led by women.
She said, “Through its investment strategy, the fund aims to create more sustainable and scalable pathways for economic growth and inclusion in the region.
“The fund will invest $500,000 to $2.5m in women-focused small and growing businesses in Nigeria and Ghana, targeting investments in critical sectors such as healthcare, fintech, renewable energy, and essential consumer goods.”
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Okunbo-Rhodes explained that Aruwa invests in innovative businesses, poised for scale, that provides essential goods and services to the rapidly expanding female economy, and businesses that are founded or led by women or have gender-diverse teams.
She further stated that the first institutional fund of the equity and investment company was oversubscribed and exceeded its expected target of $20m.
According to her, the fund has made six investments, committing over 45% of its capital into a diversified portfolio of rapidly growing companies.
SOURCE: Punch news