From Dakar to Abidjan: Investing in Women Entrepreneurs in Francophone Africa with Stephanie Sarr Dioh

[00:00:00] You're listening to the Unlocking Africa Podcast. So I always felt a calling to make a difference in Africa, which is ultimately why I made the decision to leave behind a successful and well-paying career in Paris to return to my home continent. Here, the goal is really to develop innovative financial tools that are designed specifically for women-led or women-centered business.

[00:00:27] Remember that incorporating a gender lens isn't about limiting your investment. It's about expanding it to include opportunities that the traditional approaches might miss. Stay tuned as we bring you inspiring people who are unlocking Africa's economic potential. You're listening to the Unlocking Africa Podcast with your host, Terser Adamu.

[00:00:55] Welcome to the Unlocking Africa Podcast, where we find inspirational people who are doing inspirational things to unlock Africa's economic potential. Today, we have Stephanie Sarr Dioh, who is a tech and finance business leader, board executive, and gender lens investor at the Women's Investment Club Senegal.

[00:01:17] The Women's Investment Club is the first investment fund that exclusively targets women-led companies in Senegal and Côte d'Ivoire. Welcome, welcome, welcome to the podcast, Stephanie. How are you? Hi, Terser. Thank you very much. I'm going very well and I hope that it's the same for you. So, very excited to be able to discuss with you today. Brilliant. I'm excited and looking forward to our conversation today.

[00:01:46] It's a pleasure to have you on the podcast. But as always, I like to start from the beginning. As we start this conversation, you can share your journey with us in terms of your journey into finance and tech. And what kind of drew you to this intersection in terms of the work that you're doing? Yeah, definitely. I'd say destiny played a big role in my career path. I actually ended in the fintech industry by chance.

[00:02:15] So, my career began in business development and information system in France, where I spent about 10 years fine tuning my tech expertise in different industries such as telco, e-learning and the automotive one. But then I returned to Senegal, my home country in 2015.

[00:02:34] And I joined a consulting firm called Avizo that specialized in mobile money licensing across the West African economic and monetary union zone. So, the work they were doing involved helping telecommunication companies to secure licenses from the central bank to be able to launch their mobile money products.

[00:02:56] And between 2015 and 16, I helped Orange Money fully operate the newfound status as e-money issuer in Côte d'Ivoire. And then Wiesel Money to apply for their license in Senegal. But I would say that the real turning point came in 2017, when I had the opportunity to join the two co-founders of Wiesel Mobile Money.

[00:03:22] So, Drew and Lincoln, who wanted to establish their business in Senegal. So, from the product market fee to the notary administrative paperwork and the testing of the products in different regions of the country. I basically ended up serving as the first general manager in Senegal from 2018, with a dual role also as a country launcher for what will later become the first unicorn of Francophone Africa.

[00:03:51] I would say I'm particularly proud of it when I'm seeing how we are changing lives with this product in many of the West African countries today. And in 2019, I joined the first woman-led investment club in Francophone Africa, where I'm an investor and mentor to female business owner that we are backing as you introduced me.

[00:04:15] Fantastic. So, you've gave us a great insight into your work, your professional career, obviously the amazing work that you've done within the fintech sector. But what was it that actually inspired you to transition or move more into the impact investment space? You know, what fueled your passion in this area? Yeah. So, I'm still in the fintech, definitely.

[00:04:40] But as you said, it's really something that became a passion, everything that is impact investing. So, I basically always felt a calling to make a difference in Africa, which is ultimately why I made the decision to leave behind a successful and well-paying career in Paris to return to my home continent. For me, it was really about living with general purpose and putting my professional skills to the service of the development of my country.

[00:05:09] So, in that quest, basically, of being able to create meaningful impact, I explored various avenues, including NGOs and foundation. As someone deeply also committed to women empowerment, I felt particularly drawn to focusing on women and girls. And also being in a position that I consider privileged, I have a first-hand understanding of the sociocultural challenges that my gender faces in our society.

[00:05:39] So, I would say that this passion for change has been with me from my childhood. I still remember how my mother would often ask why I thought I could change the world. And over time, I came to realize that this strive for impact was something I acquired. It was innate for me. And I came across WIC, the Women Investment Club, that I took over a year to follow and observe before joining.

[00:06:06] So, it was created in 2016 by three incredible women who came together to address the challenges faced by women entrepreneurs in terms of access to capital, but also non-financial support. So, today, it now comprises 130 women in Senegal and in Cote d'Ivoire. And basically, we pulled our savings to invest in women entrepreneurs. Amazing.

[00:06:33] So, for those who are unfamiliar with WIC and the work, what would you describe its mission in your own words? I would say that WIC is a 100-person women investment network. And we aim to provide women with special access to both suitable funding and non-financial support, like training and mentorship that helps create successful businesses and with good returns.

[00:06:59] So, our main focus is to drive inclusive economic growth across the continent. And for us, there is no better way to do this than broadly focus on the majority that is often left behind, so women.

[00:07:12] Here, the goal is really to develop innovative financial tools that are designed specifically for women-led or women-centered business to promote women's leadership and entrepreneurship and transform women from economic observer to active participants, thereby speeding up their economic inclusion, I would say. As you mentioned, the aim is to stimulate growth across the continent.

[00:07:40] But I know there's been a specific focus on Senegal and Cote d'Ivoire. So, why were Senegal and Cote d'Ivoire chosen as the initial focus for WIC capital to invest? So, Senegal and Cote d'Ivoire are two of the fastest growing economies in West Africa, and more specifically in the Francophone countries.

[00:08:01] So, WIC has built a strong presence in these countries, as I told you just before, with 130 members who actively contribute to the mission of WIC capital. Senegal projected growth, for example, rate was 10.5% in 2024 and 7% for Cote d'Ivoire.

[00:08:24] So, for MSMEs representing over 90% of the private sector, but yet only contributing 30% of the GDP and 40% of jobs to the Senegalese and Iverine economic. We are therefore uniquely positioned to drive growth in both countries, and we are open to other countries also in Africa, but provided that the same club is set up there.

[00:08:52] Fantastic. So, you gave us great insights into the growth trends you saw in each market, Senegal and Cote d'Ivoire. So, if you look in terms of the growth of the companies that you work with, what are some of the key milestones or success stories from WIC capital that you're proud of?

[00:09:12] Yeah. I think that our achievements include raising and deploying $5 million across 10 businesses in Senegal and Cote d'Ivoire in only four years. We made a deliberate decision to invest during the COVID crisis when access to funding was not only scarce, but absolutely critical for business survival. So, while investors were pulling back, we recognized that this was precisely when women entrepreneurs needed capital the most.

[00:09:41] So, we have set up also what we called WIC Academy in 2021, which has delivered extensive training and coaching to female entrepreneurs to address basically the gaps that we identified prior and post our investment to.

[00:09:57] So, to facilitate that growth. So, we are talking about over 300 entrepreneurs that we supported across eight cohorts and I would say 2.4 million USD in fundraise with all the funds that join us in this adventure. So, our value-adding strategy has also yield positive outcomes.

[00:10:21] So, for our portfolio companies, we have seen their revenues increase by an average of eight times following our investment and having created and maintained over 400 direct jobs. So, making a substantial impact on the regional economic growth despite the various economic crises impacting our core countries.

[00:10:43] You mentioned there that you decided to invest during the COVID period, which is a period other investors decided to draw back or pull back. Are there any lessons that you learned during that period that you think or you feel have put you in a stronger position? Yeah, I think that basically the thing that was impressive was the resilience of the entrepreneurs.

[00:11:07] In a period where it was a general crisis, they were basically reinventing themselves. So, that's when you saw the growth of the digital aspect being higher and more used by them. They were able to transform themselves. What we learned there was that we need to be next to those women to be able to help them in that transformation too.

[00:11:33] So, that's when basically WIC Academy was great because we had some people that had great products, had great ideas, but never experienced the digital technologies, but knew that that's where they needed to be able to take their business to the next stage. And that's where basically we were able to bring our experience with some experts that are members of the WIC Association.

[00:11:57] So, I would say that the lesson learned there, the biggest one was really to be able to be next to those resilient women and be sure to give them the keys that they need to be able to use our funds to make growth and profit. So, I'm assuming during the COVID period that there were many challenges, but also many opportunities presented itself. Within WIC, you have a sector agnostic approach.

[00:12:26] How has this approach also helped identify strong opportunities? Yeah, I think that we were covering five sectors among distant investments. We invested in non-traditional sectors like fashion, digital marketing, and recycling.

[00:12:44] And the fund noticed that the fital contribution women made to value creation in every sector of our ecosystem, despite often being underrepresented at scale. So, our general approach has allowed us to uncover a strong pipeline of compelling opportunities that merit further development and promotion.

[00:13:07] So, I think that it was really that to be able to focus on some traditional sector, but also more on the non-traditional ones. How do you go about building your pipeline? Do you actively go out looking for these businesses or is it through your network or do people approach you? Yeah, so basically there is two sides. There is one where people are going to approach us because as you can imagine, there is a big demand for funds.

[00:13:36] And the more we were able to build on visibility of who we are, what we are aiming to, and what we would like to do, the more we are receiving applications. But sometimes also there are some specific sectors that we realize that the champions that we are looking for are maybe not the ones that are following, let's say, for example, the social media. So, you have to go and look for those persons.

[00:14:01] So, we have a team that is usually going to go up country to be able to meet, let's say, women that are in the agriculture industry, talk to them, understand their business, and discuss with them to be able to understand, are these people investment ready? If it's the case, then we are going to ask them to explain their business and then being able to do the due diligence.

[00:14:30] And if they are not ready, what we would use is the WIC Academy call. So, basically, it's pulling those people because we know and we saw that they have potential to have WIC Academy prep them to be able to receive the investment later on. So, basically, yes, it's both. We are going and looking for those champions, but sometimes and more often, they are also the one coming directly to us. You talked about if they are ready.

[00:14:57] So, is it possible to just walk us through what makes a business investment ready from a gender lens perspective? Yeah. So, when we evaluate the businesses, we are looking at multiple dimensions that sign on both impact potential, but also the financial strengths. So, first and foremost, we want to see genuine gender equity in leadership and throughout the workforce. So, this isn't just about having women present.

[00:15:27] It's about ensuring that they have meaningful decision-making authority and also opportunities for advancement. We also closely examine whether the business has implemented gender-sensitive quality. This might include flexible working arrangement, parental leave, equal pay frameworks, or harassment prevention protocol, for example, that recognize and address gender-specific challenges.

[00:15:56] So, another critical factor is whether the company products or services directly benefit women or at least at minimum address gaps in what is available into their own market. So, this could be anything from healthcare innovation to financial products that are designed with women needs in mind.

[00:16:19] So, what really demonstrates the sophistication is when business track also is measurable with a gender-related metrics. So, a data-driven approach will allow us to be able to evaluate the progress over time and understand the true impacts and gender initiative. But it's really important for them to understand that we are looking for true impacts. Of course, financial viability remains essential.

[00:16:47] We are looking for businesses that can deliver social impacts while maintaining sustainable operations and growth potential. And I would say that also we are particularly impressed when business extend their gender awareness into their supply chain. Because of that, we are sure that they are creating a positive ripple effect in communities beyond their immediate operations.

[00:17:12] And I would say that, yeah, finally, what we've consistently found that these attributes not only align with our social impact goals, but often correlate with stronger financial performance. I would say that, yeah, those are the ones that makes these businesses especially appealing for a gender-lens investment perspective.

[00:17:36] Keeping on the theme of impact, how do you measure both the financial and social impact when investing in the businesses? Yeah, I think that is very concrete. We are really looking at the metrics and the financial. So it can be something like the number of women jobs, their salaries, the revenue growth, the profitability indicator as EBITs, profit margin.

[00:18:05] And regularly, often monthly and quarterly, we make sure that the business is performing while making an impact on the general economy. So it's something that we don't just invest and we work alongside the entrepreneurs to see how they are growing and how they are impacting.

[00:18:25] What happens also is that we usually, whenever possible, have a member of the week be part of the board of the company also. Brilliant. So would you say that these factors are the critical factors that you look at when deciding to invest? Yes, definitely.

[00:18:45] We often source the high potential through partners in the ecosystem, in orphans, in incubators, and also in various entrepreneurship events. Because I think that's what we noticed in Francophone Africa, which came after the Anglophone side, is really the fact that realizing that entrepreneurship is something that can make change and that is accessible to anyone.

[00:19:14] So as I said also before, when talking about the board member, is the fact that our uniqueness is also the fact that we rely on our members to be able to identify viable investment targets. And yeah, the critical factors are really contribution to investment, profitability, sustainability, and of course, value creation of the value chain. Brilliant. Brilliant. Brilliant.

[00:19:45] Brilliant. Brilliant. Brilliant. Brilliant. Brilliant. I'd emphasize starting with understanding the business case. because this is not just about social good. The research really consistently shows that gender lens investing

[00:20:12] can deliver strong financial returns alongside social impact. So when women are empowered economically, it's the entire community that benefits from it and it's creating more stable and growing markets. So I would recommend integrating through gender analysis into the investment process. So it means basically evaluating the company based on their gender diversity in the leadership, but also throughout the workforce.

[00:20:42] It also involves considering investment products and services that specifically benefit women. We often use the 2X criteria as a framework to guide these assessments. Another important point will be setting clear goals and making public commitments in another crucial step. When investors publicly commit to gender equity targets, it creates accountability and signals seriousness to the market.

[00:21:12] But this commitment also must be backed by building internal capacity. So training your team to recognize gender-based opportunities and risk. And finally, what we found absolutely essential is rigorous monitoring and evaluation. Using gender-design data to track progress allows you to see what's working, what isn't, and refine your strategies over time.

[00:21:39] So this data-driven approach will help you to ensure that your gender lens isn't just a checkbox, but a genuine driver of both impact and returns. So really, I would tell them to remember that incorporating a gender lens isn't about limiting your investment. It's about expanding it to include opportunities that the traditional approaches might miss. Fantastic. And with that in mind, what would you say is some of the biggest myths

[00:22:08] or misconceptions about gender lens investing? So I would say that the biggest myth or misconception is the first one, is the fact that it sacrifices financial returns to social impact. So basically, this suggests that gender lens investing prioritizes social goals at the expense of financial performance. No. What evidence basically has shown is that companies

[00:22:36] with strong gender diversity often outperformed financially. So for example, female-founded firms deliver twice as much revenue per dollar invested compared to male-founded firms. And organizations with diverse executive teams are more likely to perform better than their peers. So our approach to this misconception is to target financially sound companies that can generate

[00:23:06] 30% internal rate of return to the funds. We target the same returns as the other funds in our markets. The other one, I would say that is when people are going to say, oh, it's too niche or small scale to be impactful. Many believe that gender lens investing lacks scalability or broad applicability. But no, on the contrary, it can be integrated into various investment strategies and sector.

[00:23:35] So for example, from transportation to supply chain. So flexibility enables the adoption across industries and by investors of all size. Thank you for that. You highlighted the various investment strategies and approaches. So if we look closer at specific approaches, can you explain how WIC uses, I think I read, was it equity and quasi-equity structures to promote liquidity?

[00:24:06] Yeah. We use equity investment to be able to recapitalize and strengthen the undercapitalized SGPs. This provides what we call patient and intelligent capital in markets, where financing options are extremely limited. So traditional banks are often reluctant to provide appropriate instruments or ticket size that can truly full growth to these businesses

[00:24:32] and create a significant impact that we are addressing. I would say that what's been particularly effective in our model is our use of quasi-equity structures, also known as shareholder loans. These instruments really give us a powerful flexibility. They will allow for liquidity and recycling of capital while enabling us to maintain a minority stake

[00:25:01] despite making a relatively large investment. So we've designed these using cash flow, sharing structures that create more liquidity for both the business but also for our funds. So this balance approach means entrepreneurs can access gross capital without giving up too much control of their businesses which is one of the biggest fear of people that are not used to investment.

[00:25:28] But also at the same time, it helps us to continue to support more entrepreneurs by redeploying returns more quickly than traditional equity would allow. So it's really a win-win that's particularly well suited for the African context where I would say that traditional financing models often fall short. It seems like this approach is a key part of your investment thesis.

[00:25:55] But how important would you say local presence and community engagement is in your investment thesis? Yeah, we strongly focus on local value creation as all our investments are either manufacturing products or offering services locally. So we aim to provide local products and services for our local markets. But of course, we have the ambition to export those products and services.

[00:26:25] And that's why I was talking about champions because of course, the goal and the aim is to be able to make sure that the immediate impact is really locally, but also with the ambition to be able to go further. As you highlighted there, value creation is important to what you do, which is where the academy also plays a role. So what role would you say the WIC academy plays in increasing that investment readiness?

[00:26:55] Yeah, I was talking about earlier on, we created WIC academy because we wanted to make sure that we support every aspect of the technical assistance that we offer. So concretely, pre-investment phase, they organize investment-ready programs in the forms of co-ops that are spanning maybe up to six months. So these programs are designed to equip the entrepreneurs

[00:27:24] with the right tools to structure their business. So work on their investment deck, set up the right documentation for fundraising purpose and provide workshops on financial literacy and fundamental for business reporting, which enables them to have access to funding, either capital investment, loans or grants. Because I think that that's also what was missing. When you go to the bank,

[00:27:52] they are expecting you to be able to be ready. But what we realize is that you can be strong on one side of your business and lacking some help or strengths on others. But does it mean that you are not a great potential? No. So also post-investment, WIC Capital is recruiting experts to cut our portfolio companies' needs that have been identified during the due diligence.

[00:28:22] And that's why also WIC Academy plays an important role. Also, as part of your thesis, you invest in non-traditional sectors like creative industries and cosmetics. Is there a different approach when you're trying to evaluate companies in non-traditional sectors? I would say that it's that difference. What we assessed was really their innovation capacity and their ability to generate substantial revenues

[00:28:51] while keeping their costs reasonable, like with most of the business. So we use the multi-layered performance review. What is the environmental impact? What is the social impact? What are the financial performances for some of them in cosmetics or in fashion? What is the cultural heritage preservation happening? For others, it can be also the health impact and the profitability. So when it comes, for example, to the cosmetic industry,

[00:29:20] we focus on analyzing the ability to adapt to market trends, but also consumer preferences as they can be different from a market to another one. And we also consider sustainability and ethical practice along with financial performance and growth potential. So I would say that every business, because of its nature, we are not going to look for the same things and same impacts between, for example,

[00:29:48] a manufacturing and a cosmetic one. I'm assuming with working across a range of sectors, you have to have your feet and ear to the ground to see what's current, if there's any new trends that are taking place. So are there any new or current trends that you're seeing in Francophone Africa's gender lens investment space that you're excited about? Yeah, I would say that definitely when you are in the ecosystem,

[00:30:18] you have an eye on what is happening, but it's also a room and an opportunity to be able to point out what is not working, what is missing, and being able to discuss with the different actors of the ecosystem. So I would say that the interesting part is that we are observing now a strong commitment from governments and institutions to promote gender lensing, which is pretty new on our part of the continent.

[00:30:46] So simultaneously also, there is a notable increase in women participating in the ecosystem and bringing innovative ideas and projects to the forefront. I think that the main thing that we also always notice with women is that they are very capable, but sometimes they are going to lack it. How can I say that? Trusting themselves and listening to their instinct. So right now,

[00:31:15] we are eager to support and be part of everything that is happening. So really this transformative change that is coming. So if we move from current trends and look towards the future, future of Africa, how do you see the gender lens investment space in Francophone Africa evolving, say over the next five years? I would say that I see the gender lens space really taking off.

[00:31:45] There is growing awareness that gender equality isn't just a social issue. It's an economic opportunity. More investors and development partners are starting to realize that supporting woman-led businesses can deliver both impact and solid returns. We likely see more targeted funds and financial tools designed to support women entrepreneurs. We are already seeing that happening in Senegal

[00:32:14] and in Cote d'Ivoire. So it can be things like flexible loans, blended finance, and gender smart investing platforms. But it's not just about the money. Capacity building, mentorship, and policy reforms will play a huge role in making the ecosystem more inclusive. Really what is exciting is that gender lens investing won't remain niche for long. It's moving into the mainstream, especially as more data

[00:32:44] are showing that businesses with diverse leadership perform better. And also with growing collaboration across the Francophone countries, we could see a more cohesive regional approach that will be able to drive real economic growth. So I would say that I see a future that is bold, inclusive, and full of potential. Fantastic. That's great to hear. So if you look closer to home, you know, what's next for you

[00:33:14] and what's next for WIC Capital? What are the ambitions for the fund and what impact you hope to be making in Francophone Africa in the space? Actually, I'm really excited about being proud of building the next generation of disruptive products and solutions that are not just going to make life easier, but actually really transform lives across our region. I want to stay really at the intersection of innovation,

[00:33:44] impact, and inclusion where the real change is happening. As for WIC Capital, our ambition is to create a second fund with the lesson learned from the first one. We want to build on the foundation and take our support for women, land, and female-dominated SMEs to the next level, especially those with high growth potential that just need the right capital and guidance to scale.

[00:34:15] So we are working to raise up 30 million euros, which will allow us to expand our reach across West Africa, back more transformative businesses, and really push the envelope on what gender lens investing can look like in front of Africa. So ultimately, really, the goal is not just to invest, is to shift the narrative to create a ripple effect where women-led business become a core part

[00:34:44] of the region's economic engine over the next five years. Fantastic. Thank you for sharing that and I look forward to seeing it happening. Quote of the Week As people, we often have quotes, mantras, African proverbs, affirmations that keep us going when times are challenging or when times are good. Do you have one that you can share with us today? There is an affirmation I return to repeatedly that has become

[00:35:13] something of a personal mantra through my journey in impact investing and leadership. It's simple, but it's profound. Basically, it's know yourself, have faith, honor your values and cultivate resilience. This saying has anchored me during the most challenging times when I faced resistance as a woman leader. Knowing myself, my strengths, limitation

[00:35:41] and authentic purpose really provided clarity when others question my past. Having faith is not just in a spiritual sense, but faith in the sense of trusting my vision and the process carried me through moments when results weren't immediately visible. I think that what truly distinguishes great leaders for merely successful one is how they honor their values when tested. There were many opportunities

[00:36:11] where compromising would have been easier or more profitable, but staying true to my core values preserved something more valuable than any short-term gain. And finally, resilience. That ability to bend without breaking has been essential. In the African business context where a system can be unpredictable and challenge is unique, I would say that resilience isn't just about enduring difficulties, but it's about

[00:36:40] transforming them into opportunities for growth and change. So really, these four principles woven together have formed the backbone of both my personal philosophy and my approach to impact investing and leadership in business. So when I share this with women entrepreneurs I mentor, I often add that these end separate, but rather a combination of values and behavior to embrace

[00:37:10] as a personal culture. So each one really strengthen the other one. And I would say creating an unshakable foundation that no external challenge can easily shatter. So that's really what I would share with people today. Fantastic way to close today's conversation. Thanks so much, Stephanie. Thank you for sharing your powerful insights and inspiring journey with us today from finance to gender equity

[00:37:40] and innovation for women entrepreneurs in Africa. And I'm looking forward to seeing where WIC goes next in terms of your fund too. So I guess until next time, keep investing and keep making positive changes. Thanks so much, it was really a great opportunity to be able to discuss and share with you what we are trying to achieve. Thank you and speak soon.

[00:38:09] Thank you. Bye. Thank you to everyone who has listened and stayed tuned to the podcast. If you've enjoyed this episode, please subscribe, share or tell a friend about it. You can also rate, review us in Apple Podcasts or wherever you download your podcast. Thank you and see you next week for the Unlocking Africa podcast.