Women, Wealth, and Impact: How Africa’s Largest Gender Lens Fund Directs Capital with Yewande Adewusi

[00:00:00] You're listening to the Unlocking Africa Podcast.

[00:00:04] I've worked in many organizations across many sectors from being the Regional Director of BBC for Sub-Saharan Africa to where I worked as an analyst advisor.

[00:00:14] Investment at the start might not look like it's gender proactive in terms of those parameters, but putting some clauses in your investment, you can make that shift.

[00:00:24] Standalone investing in females, wonderful, but when you can see that you can go green at the same time and have climate parameters included, it's super exciting.

[00:00:34] And there's going to be more of that as this mainstreaming of climate matters as well happens.

[00:00:40] Stay tuned as we bring you inspiring people who are unlocking Africa's economic potential.

[00:00:47] 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.

[00:01:04] Today we have another great guest. We have Yewande Adewusi who is Chief Operating Officer and Operating Principal at Elifia Capital,

[00:01:15] a leading impact investment private equity firm that currently manages the largest gender smart fund in Africa.

[00:01:24] Welcome, welcome, welcome to the podcast Yewande. How are you?

[00:01:28] My Tessa, great. How are you?

[00:01:30] Fantastic. It's a pleasure to have you on the podcast. I know we've, well, this has been a long time in the making of planning, so it's great to finally have this conversation.

[00:01:40] Glad to be here, finally.

[00:01:43] Brilliant, brilliant, brilliant. So before we get started, I was hoping you can just give us a brief introduction and tell us a bit more about Yewande.

[00:01:53] Great. So Yewande Adewusi, I'm the, as Tessa said, the CEO and Operating Principal at Elifia Capital.

[00:02:01] I am from an operator's perspective, I've worked in, historically, before joining Elifia, I've worked in many organizations across many sectors, from being the regional director of BBC for Sub-Saharan Africa, to my, at the beginning of my career, to where I worked as an analyst at Pfizer, because I trained as a pharmacist.

[00:02:22] And in between there, I've had an extensive career with mobile financial services from mobile money and inclusion, financial inclusion at FINA.

[00:02:31] Then moved to managing mobile financial services at Airtel.

[00:02:36] And then recently, before joining Elifia Capital, I was the chief commercial officer at an insurance group called Tangerine.

[00:02:43] So I'm bringing all that experience with everybody's like, why are you in private equity?

[00:02:47] So this role allows me to use all the experience to support the companies we invest in.

[00:02:52] So, yeah, that's me in a nutshell.

[00:02:55] Thank you.

[00:02:55] So, as you said, you've had quite a diverse and very commercially focused professional journey.

[00:03:01] But what is it that inspired you to focus specifically on impact investment?

[00:03:07] I think when, I mean, I came across Tangerine many years ago and Aletheia Capital, when I was working at a company called Enhancing Financial Innovation and Access.

[00:03:16] It was a DFID, well now FCDO, financial inclusion program based out of Nigeria.

[00:03:22] And at the time, I was also, you know, focused on impact in terms of getting people banked using digital financial services.

[00:03:31] So it was an overlap, but, you know, they were investing in companies.

[00:03:34] So it was sort of abstract to me, but it was very interesting.

[00:03:37] So circle back forward, moving forward, you know, just reading a bit more about, you know, you've moved up in your career and you're now looking at investments.

[00:03:48] And it was just interesting to see the whole concept of focusing on investing with impact.

[00:03:54] Because, you know, when you're commercially minded, I guess, you know, before you just think about it as a CSR thing.

[00:03:59] You have earmarks, earmarks of money on the side to do something that looks really good for your board report.

[00:04:08] But now that there's a specific focus on it, it's like, this is a thing.

[00:04:13] This is mainstream now from back in the day.

[00:04:16] And I thought, wow, wouldn't it be good to be making money as well as making impact in terms of jobs creation or or lively, improving livelihoods of Africans?

[00:04:26] So that really spoke to my deep wanting to be in the nonprofit space again, but still wanting to make sure it's done.

[00:04:34] I always worried when I worked in a nonprofit space in terms of are we doing this commercially with the money finished tomorrow?

[00:04:39] Would this still continue? So it's nice to see that one can invest with that in mind.

[00:04:45] And then another area was then they now move from impact investing to focusing on getting capital in the hands of female owned or female led businesses.

[00:04:52] I'm like, oh, my gosh, this is speaking to my DNA.

[00:04:56] And and it was great to see that there was a company that pioneered all that.

[00:05:00] And I said, I want to be part of this because I've always been sort of a groupie fan of two combos from a side.

[00:05:06] So it's nice to see that. Oh, now I'm at a level that I can bring my special skill set to this organization.

[00:05:13] So, yeah, that's and just seeing that that transition of a woman that wouldn't normally think that their business could grow to a certain size and now exporting multiple palm trees operations in multiple places.

[00:05:26] So it's nice to not think of it. You know, when you think of women businesses, you know, there's always this micro.

[00:05:32] She's got a shop in the village somewhere.

[00:05:34] I know, which is fine, which is important.

[00:05:38] SMEs are very important for all economies, but it's nice to be focused on scale, scale.

[00:05:42] I'm always everybody's like, oh, you're always talking about scale, but businesses that can scale if you get capital to them and the right support and access to markets.

[00:05:51] So that's really, really what excites me about Alithia Capital and the work we do.

[00:05:56] Fantastic. Thank you for that.

[00:05:58] So as you touched on before, Alithia Capital's focus is on gender lens investing.

[00:06:03] So I guess if we look at it from your perspective as a woman leader in finance, how have you managed to navigate some of the challenges in an industry that has been historically male dominated?

[00:06:18] I guess, I mean, the trailblazers are the likes of Tokumbo and Polo.

[00:06:23] Like I'm coming not late to the party, but, you know, new to the party as I've only been in the sector for about a year.

[00:06:29] But I think in many sectors, those trailblazers that wanted to go against the grain, you know, talking about things that before, like I said, I have a commercial background, so I'd probably lean that myself.

[00:06:44] But someone I'll bring in this other lens of it is important to think about putting capital in the hands of female owned or female led businesses.

[00:06:54] Totally off script. It is important to get funds, female fund managers, because if you have a female.

[00:07:04] And D and I is great, but we know how that sometimes gets watered down as well.

[00:07:10] So it's nice to look at it in terms of this is commercially makes sense, because when you have diversity of thought in a room, you will look at your investments differently.

[00:07:18] So you should have female owned and female managed of female run fund managers.

[00:07:24] And then so getting that mainstream thought of investors and LPs being deliberate about giving capital to women fund managers is it's something that we'll be preaching that for a while.

[00:07:40] And it's changing. You have more female run funds, but it's still what size do they get to?

[00:07:50] Are they going to get to, you know, this mega fund size?

[00:07:53] We'll still watch the space. But I think that the intentionality around, yes, they can do it.

[00:08:00] They've shown prowess when they worked in other firms.

[00:08:04] So why not give a female led fund manager access to capital to to run their own fund?

[00:08:12] And then when you look at the next step in terms of the businesses that you're investing in, because you have that lens in terms of and it's not fuzzy, was it?

[00:08:19] Like I said, I have no leanings of just doing it for, you know, the old school level CSR when you just do it to to tick a box, but that it actually changes lives.

[00:08:33] You know, that's that's the mantra that needs to be repeated over and over so that people are intentional about it.

[00:08:39] You're hiring female asset allocators.

[00:08:42] You are putting money in the hands of female led businesses intentionally and not from a quota perspective, but because it actually makes sense.

[00:08:51] So that's what I'm just saying.

[00:08:53] But it's still going to be something that we'll be talking about and that people talking about.

[00:08:57] But there's more because it's now mainstreamed.

[00:09:00] It's OK to talk about it.

[00:09:02] And it's not a tick box exercise, I would say.

[00:09:04] You mentioned that the company is deliberate or at least is deliberate about giving capital or putting capital in the hands of women.

[00:09:12] From the work you've done or you've been involved in so far, what impact have you seen so far from this focus?

[00:09:19] So I'd like to just use this opportunity to let everybody know the definition of gender smart investing.

[00:09:27] So there are four sort of parameters that you look at when you're doing this.

[00:09:31] So one, it's a female owned business through a woman owns it, a majority shareholder.

[00:09:37] Another lens is majority of females in executive senior management.

[00:09:43] Three would be your making products and services that women use.

[00:09:47] And four would be there are many women in the value chain.

[00:09:50] So by the time you're looking at an investment, investment at the start might not look like it's gender proactive in terms of those parameters.

[00:09:59] But you can.

[00:10:02] By putting some clauses in your investment, you can make that shift.

[00:10:06] So it makes everybody intentional about, OK, currently we have 70 percent males in management or 70 percent of our staff are male.

[00:10:17] Then you can start thinking about how do you make that switch to making sure that the diversity in the organization changes.

[00:10:28] And then you'll just see how it impacts how you develop products, how you look at costs and different elements of running a business.

[00:10:38] In terms of actually finding female led businesses, that's so important because a lot of them are they get trapped in this whole accelerator space.

[00:10:45] I don't know how to explain it, but, you know, this whole support them, support them, support them.

[00:10:49] And then with training and training and training where, in fact, this business is actually when you look closer.

[00:10:55] Wow, she makes a significant amount of revenue.

[00:10:58] She's not really a small business and what she needs to go to the next level is capital and that confidence to just I can do this.

[00:11:06] So I think when you look at that in terms of when you're when all the pipeline comes in and you see it either fits one of those four parameters,

[00:11:18] you follow with that business and see how, OK, they might not be ready for me now, but you keep that relationship going.

[00:11:24] And intentional that I think this could be the one that you can invest in.

[00:11:29] So you just have to whenever the pipeline comes in and as you're looking through the sources of pipeline,

[00:11:34] you think about those parameters and think how can this align with your portfolio construction as you go through.

[00:11:41] If that makes sense.

[00:11:42] Yeah, makes perfect sense.

[00:11:44] So I guess outside of providing access to capital, you also provide non-financial support,

[00:11:49] such as 3D is a Inzinga scale up boot camp.

[00:11:53] I was wondering if you could share a bit more about this and why you thought it was important in terms of the product or the suite of services

[00:12:03] or the support that you give to your portfolio companies.

[00:12:06] Yeah, we're a very firm believer that giving cash alone isn't the only way to get a company to scale.

[00:12:13] So we work very closely with our portfolio companies, but even before they become portfolio companies,

[00:12:18] we created the Inzinga boot camp back in the day, which was like a little bit of a program that entrepreneurs would go through working with them hand in hand in terms of looking at the business case,

[00:12:29] the business model, access to market and all the elements that you'd look at when you're ruling out a business.

[00:12:35] But this is now involved now where we want to make it a bit wider, that it's not just a few people that we bring together.

[00:12:42] We've actually created the Inzinga platform, which will launch early in the new year.

[00:12:48] We're still finalizing.

[00:12:50] And what we've done is put key topics on a platform, creating a community.

[00:12:54] So there's strategy to marketing, to finance, to entrepreneur well-being.

[00:13:00] We are trying to make sure that we give you those tools that you read and also interviews with established entrepreneurs that can give you insights into their journey.

[00:13:11] So we're really trying to make sure we give you the tools to excel as an entrepreneur and also not feel alone.

[00:13:17] So in the community aspect of the platform, you can comment on the modules and you can and there'll be an opportunity to exchange, make connections on the platform.

[00:13:28] So we're very committed that an entrepreneur's journey can be lonely, right?

[00:13:33] We always think of it that there's some corporate with a zillion people there.

[00:13:37] And so it's nice to be able to talk to others and also not feel alone that someone else has gone through it and there is a way to surmount it or they can connect you to the right resource that you need.

[00:13:49] So that's what we've looked at in terms of working with our companies that are with us.

[00:13:55] We definitely handhold them very closely from a value creation and monitoring and evaluating standpoint.

[00:14:00] But with a wider ecosystem level, we're trying to help the wider SME and startup ecosystem with these tools to help them grow their businesses and sustain themselves.

[00:14:13] So I guess the Inzinger scale-up bootcamp, it does fit in perfectly with how LFE operates with a long-term patient capital approach.

[00:14:23] So how do you maintain a focus on sustainable growth in an industry which is relatively about short-term gains?

[00:14:32] Well, with our businesses, you know, we're looking at being with them between five and seven years at a minimum, you know.

[00:14:40] So it can't be too short-term.

[00:14:42] But what we're looking at when we're working with our companies, we have a team.

[00:14:47] Apart from our investment managers, we also have value creation and our ESG team.

[00:14:52] So the value creation team is going to look at all the elements of your business in terms of how do we create value in this business?

[00:15:01] Because we came in for that very purpose, right?

[00:15:03] This is where you are and this is where you need to get to.

[00:15:06] And the steps in that process is value creation.

[00:15:10] So we look at it very holistically in terms of do you have the right team?

[00:15:16] What sort of working capital do you need to grow?

[00:15:19] Access to markets.

[00:15:20] What needs to be done to do more move out geographically?

[00:15:27] What needs to be done in terms of product diversification?

[00:15:31] So we're looking at your business quite holistically.

[00:15:33] And then we look at now that ESG is so important, how can we support you in the reporting, being compliant,

[00:15:41] and also beyond reporting in terms of that transition?

[00:15:44] So we have energy transition initiatives that we support our portfolio companies with.

[00:15:50] And just making sure that it's not being done as a tick-tock exercise.

[00:15:54] It actually helps your bottom line.

[00:15:56] So in our work with our portfolio companies, we're very clear that, OK, we need your top line to grow.

[00:16:02] We need your margins to expand.

[00:16:04] We want you to be profitable.

[00:16:05] And we also want to make sure we are sticking to what we're saying in terms of wider impact on communities in which the businesses operate.

[00:16:13] And also in the wider saving the world, saving the earth.

[00:16:17] How can we go green in the process?

[00:16:18] And without it being arduous, but more that it actually makes sense for the company to do this.

[00:16:25] So that's our approach to creating values in these companies that we work with.

[00:16:30] So would you say this is what sets Alifia Capital apart from other private equity firms in Africa or are the other areas that are set you apart?

[00:16:38] I think this is definitely one.

[00:16:40] We really are deliberate about our commitment to enhancing prosperity in the lives of Africans and making communities better.

[00:16:52] We want that wealth transition.

[00:16:54] We don't want to have we want to have these positive stories of people moving from level one to level two because we invested in a company that's in their community that can provide job access to jobs.

[00:17:06] If I can have a job, my child can go to school, they can be healthy and I can I can save and grow my personal wealth and these companies as well in terms of contributing to the wider economy in the countries in which they operate.

[00:17:22] So we're very much committed to that.

[00:17:24] And we know that it isn't about here's the cash and go and do it because, you know, an SME, even at a growth stage, is still not a corporate.

[00:17:33] So they need support.

[00:17:36] How can how can we support them in this journey?

[00:17:39] Because if they win, we win.

[00:17:41] So we definitely don't.

[00:17:43] That really for us is our commitment with that helps us as we we work with the companies in which we invest in.

[00:17:50] So I do think it does support.

[00:17:51] I mean, people are joining the bandwagon, but at least from the get go, that's what we set out to do.

[00:17:56] Impact, impact and ensure that the companies are making the communities in which they operate better for everyone.

[00:18:07] Thank you for sharing that.

[00:18:08] So I guess before you get to that point in terms of giving the cash and support, what is your process or how do you go about identifying those high potential businesses that you would be interested in supporting?

[00:18:21] So there's multiple ways.

[00:18:24] I mean, we're out on the streets.

[00:18:25] I can use that term.

[00:18:27] So we're out on the streets connecting.

[00:18:30] So, you know, the industry events and where you'll see SMEs gathered and we can, you know, listen to them on the platforms and see it's an interesting company.

[00:18:42] Of course, we get cold calls where we have on our website.

[00:18:45] Reach out to us on fundmeatthealethia.com so they can reach out to us.

[00:18:50] We also connect with a lot of accelerators and programs as well where, you know, we would have seen the company when they're a bit, a little bit too small for us.

[00:19:00] But as they move along, we follow them in their journey and then just keep in contact with them and just see how they're progressing and through that as well.

[00:19:09] And of course, through our network of other investors, they will refer that, oh, we've seen this interesting company.

[00:19:15] You might want to come along as a co-investor in it.

[00:19:18] So there's multiple strategies of identifying these potential portfolio companies that we will assess to invest in.

[00:19:27] So, yeah.

[00:19:27] But like I said, we're on the streets.

[00:19:29] I love that.

[00:19:30] So at that point, what are some of the, or what factors are most critical in your decision to invest in a company?

[00:19:39] So that's aligned with our investment thesis.

[00:19:43] So we do have two funds that we run.

[00:19:46] So the Alithia Idea Fund, which is our gender lens fund that I mentioned, focuses on access to essential services.

[00:19:53] And we're sector agnostic.

[00:19:56] We have a particular size of the company must be at its particular stage with a particular amount of revenue.

[00:20:03] And those things come into play.

[00:20:05] And if we can see that for the gender lens fund, like I said, it has to match one of those things owned by women, women in management, women in value change or producing products and services that women would utilize.

[00:20:16] Then that would now lead to us digging deeper in terms of, okay, this company's making significant revenue.

[00:20:23] They're doing this, they're doing that.

[00:20:24] And we investigate more engaging with them.

[00:20:27] We see a deck and it's a lovely Tevidek, but we then connect with the entrepreneur to find out a bit more.

[00:20:33] And then we go through the different processes and we have a lot of investment guidelines and whatnot.

[00:20:39] But it definitely has to align with our thesis and with our overarching thing, impact, impact, impact jobs, women, percentage of women in the workforce, alignment with our ESG priorities.

[00:20:54] So there's a lot of parameters, but the overarching thesis must be there.

[00:21:00] The link to our overarching thesis must be there.

[00:21:03] Like our other fund, our VC fund, it's not quite early stage, but it's VC, it's inclusivity, leveraging tech.

[00:21:09] So that fund, again, is tech diagnostic.

[00:21:11] But we've invested in agribusiness manufacturing, logistics and mobility, recycling companies.

[00:21:18] So these are things that we see that, okay, leveraging tech to that business would get us to where we want to, that aligns with our thesis.

[00:21:26] And the same with the IDF, Malithia IDF fund, which are our gender lens fund.

[00:21:29] A lot of, we're very heavy on agribusiness and manufacturing, but we've also invested in fintechs, logistics solutions, digital identity.

[00:21:38] So things that we see, access to an essential services, it must align with our thesis, I'll say.

[00:21:45] Thank you.

[00:21:46] So you touched on the Alifia IDF.

[00:21:48] Can you talk about some of the fund's achievements so far, and I guess your future vision for it?

[00:21:58] I mean, we've getting 70% of our fund is female, matches our gender lens strategy in terms of me.

[00:22:11] All of them meet our 2X global and are gender smarter.

[00:22:15] But in terms of actually 70% are owned by women.

[00:22:18] It's so exciting to me.

[00:22:20] I can't slide it.

[00:22:22] So, you know, and so that's an achievement in and of itself.

[00:22:28] And these are businesses that are growth stage SMEs.

[00:22:31] So it's not a mom and pop shop.

[00:22:33] It's really some companies that are really making impact where in their area of operation.

[00:22:40] Another interesting thing that's happened with the fund that excites me is that we are seeing this whole, you know, everybody's talking climate, climate, climate.

[00:22:50] So it was gender, gender, gender.

[00:22:52] Now it's climate, climate, climate.

[00:22:53] And that move that we have gender smart businesses that are going green, not because it's cool to go green, but because, as you know, in Nigeria, we have our power issues where you have to supplement the grid with other sources of power.

[00:23:11] So you have a lot of companies using diesel.

[00:23:13] You can just imagine diesel emissions and the impact on the environment.

[00:23:18] And then now we're seeing that since the cost of power went significantly higher, you didn't have to, well, threefold, actually.

[00:23:26] You didn't have to beg them to go and explore solar as an option or using biofuels as an option.

[00:23:33] So we've seen a lot.

[00:23:34] And I think that's a major achievement for us.

[00:23:36] And the impact on the cost of power and the reduction in emissions, I think that's exciting as well.

[00:23:43] So when I see our numbers of jobs created, women, capital in the hands of female SMEs, and also now this new leg of, wow, we're actually doing good for the environment as well.

[00:23:57] It really excites me.

[00:23:59] And that's what we're looking for as we look forward to our next ones as well.

[00:24:02] That intersection of, and even digital transformation.

[00:24:05] Someone will say, oh, did you create an app?

[00:24:07] Or did you create some sort of store online?

[00:24:09] No, we got them to just get ERP.

[00:24:11] So the efficiency of the business is better and things like that.

[00:24:15] So it's just exciting just seeing how what seems mundane from an outside view, the impact on those businesses in terms of being able to operate efficiently, manage their stock management,

[00:24:28] just because they move from Excel to some ERP solution.

[00:24:33] It just excites me because you can just see how they're moving even faster.

[00:24:37] They love their businesses, but now they can be super efficient about it.

[00:24:41] So that really excites me with the businesses we've invested in.

[00:24:44] During our conversation, we've highlighted the organization's remarkable success in supporting women-led, women-focused businesses.

[00:24:53] But from your perspective, what outcomes are you most proud of?

[00:24:58] What outcomes are I most proud of?

[00:25:01] I think a lot of work has been through this organization that's been around for a bit.

[00:25:08] But if I take the work of the two partners that started the Aletheidea Fund, I think they went against the grain.

[00:25:18] They went, I mean, they really hit the streets trying to get people to understand the importance of gender smart investing.

[00:25:27] And I think now that it's mainstreamed and everything, I mean, we predate 2X and we work closely with 2X.

[00:25:36] So they use our gender lens toolkit to refine what they came up with.

[00:25:40] But just the fact that everybody's on it now, it's not a bad word to say we're intentionally investing in female-led businesses.

[00:25:48] I think that the more the merrier, please, everybody come into the party so that there's access to capital for these businesses.

[00:25:58] So for me, being part of this organization that really pioneered all that really excites me that people understand it.

[00:26:08] People get it.

[00:26:09] It's not you don't have to have 500 hours of explanation of the conversation for people to understand.

[00:26:14] It is important to put capital in the hands of female-led or female-owned businesses.

[00:26:20] And it makes sense for everybody in terms of wealth creation and just getting people out of poverty and living fulfilled lives and lives at a standard that is acceptable to more people in Africa.

[00:26:35] So that's the thing that excites me.

[00:26:36] I hope I haven't waffled on, but that's what it really excites me.

[00:26:38] Not at all.

[00:26:39] Not at all.

[00:26:40] Fantastic.

[00:26:40] So I guess due to these successful outcomes, I know Elifia is expanding its investments across 20 countries.

[00:26:47] Well, what we've done currently is we've invested in West and Southern Africa, a SADAC region and West Africa.

[00:26:55] So we are looking at our new fund, which is what we call the Amplify Fund.

[00:27:01] And it's focused on the learnings from our history, the funds we've had in the past.

[00:27:06] Like I said, the fund that was focused on inclusive deal-leveraging tech and also so our gender smart fund and the funds we had before that, the Clean Energy Fund as well.

[00:27:15] So we're now looking at, okay, all these learnings, wonderful, wonderful, wonderful.

[00:27:19] And all the impact made wonderful, wonderful, wonderful.

[00:27:22] What next?

[00:27:23] So the Amplify Fund is seeking to look at the intersection of gender, climate and digital.

[00:27:29] Well, gender is a sacrosanct.

[00:27:32] It must be there.

[00:27:33] But if we have a company that is looking at the climate and energy transition and energy access in particular, we would love that.

[00:27:42] And if you're adding digital transformation, any form of leveraging tech to make it more efficient to get scale, we'd love that.

[00:27:49] So that's how we've seen.

[00:27:51] And we're looking at that to raise our new fund, the Amplify Fund, 200 million.

[00:27:56] Lord, help us.

[00:27:57] And we'll get there.

[00:27:58] But we just see that gap in terms of the capitalist requirements for those type of growth stage SMEs.

[00:28:06] There's need for that.

[00:28:07] And also flexibility of the instruments that you're using.

[00:28:10] So we really hope with this new fund that we can build off the narrative that we put out there already with our existing investments.

[00:28:20] And therefore, we can really scale and grow these businesses a lot more and get them to super heights to be corporates, if we can say that as well.

[00:28:31] Yes, yes.

[00:28:32] So I guess as an investment fund that works across many markets, what challenges have you faced or had to overcome in order for you to expand?

[00:28:44] We do tend to make sure before we go into any market.

[00:28:49] We have a member of the team that's an expert in that market.

[00:28:52] So the teams are on ground, number one, and they have expertise in investing in that country or region.

[00:29:04] If we're with this new fund, we're looking to expand into, we've not invested in a francophone, West Africa, and that would be something that we would look to do.

[00:29:13] So I would say that we minimize the challenges of moving into a market because we've had people that understand the market.

[00:29:20] I think the major challenge in the markets in which we operate are the macros of recent.

[00:29:26] The macros of recent have slapped us and our portfolio companies.

[00:29:33] So, but again, because we have teams that have expertise and that we can figure out, okay, what do we do?

[00:29:39] Okay, we need to, as you know, in West Africa, Nigeria, Ghana, our currencies have been heavily hit.

[00:29:46] So what do we do?

[00:29:47] Okay, import substitution has got to be the focus or looking to export markets.

[00:29:53] You've got to get FX in to make your company successful.

[00:29:58] So pivoting is so key, but I can say we can't control the macros, but we need to know to pivot quickly as the strategy.

[00:30:07] So the challenge has been the macros and the mitigation strategy is having a team with experience

[00:30:14] that can quickly find alternative solutions that help the portfolio companies survive things that are totally out of their control.

[00:30:24] Fantastic. Thank you for that.

[00:30:26] So I guess with those challenges, you would see some of the impacts on the ground with the local communities that your portfolio companies serve.

[00:30:35] So what are some of the challenges or impacts you've seen to local communities?

[00:30:41] So the thing is, the cost of everything is going up, right?

[00:30:45] And that's one thing that's happening.

[00:30:47] And the companies are still trying to maintain the same level of output, maintain a certain level of revenue without doing too much excessive cost cutting, right?

[00:31:00] So, you know, it's either you slim your margins to sustain and be very tight on your cost so that you don't have to do the whole cost cutting of stuff,

[00:31:15] reduce how much you're buying from your value, you know, your suppliers and in the value chain.

[00:31:22] Because the money is finite.

[00:31:24] You've got $100, you've got $100.

[00:31:27] The thing you're buying has now doubled in price.

[00:31:30] Of course, there's a knock on effect because if you let's say you're buying cassava from the farmers and the price has doubled,

[00:31:38] you'd like to maintain the same amount of volume, but the price has doubled.

[00:31:43] So therefore, it's a case of how they've managed that is, you know, you have to, it's a strain on your working capital.

[00:31:51] And you just find it's almost like the companies are taking a hit so they can still continue to keep the same staff strength

[00:32:00] or still continue to buy from their suppliers at the same volume and that type of thing.

[00:32:06] And it's affected their margins.

[00:32:07] So you can see that.

[00:32:08] And until it becomes unsustainable, then that will be, that would adjust, which I mean, it's fair.

[00:32:16] They can't run a business at a loss because they're trying to maintain the same level of impact on their communities.

[00:32:23] But luckily, a lot of them have taken a hit on their side.

[00:32:28] And therefore, we haven't seen any massive reductions in staff strength and that sort of thing.

[00:32:37] And even the quantity of product they're buying from the value chain has even gone up because, you know, they've got larger orders.

[00:32:46] So they've just had to figure out that balance between this is what the reality is now.

[00:32:51] How do I still keep growing my business?

[00:32:53] Because you still need the staff if you're increasing your capacity.

[00:32:58] So they manage that by being very, very tight on their cost, like trimming all the fat so that they don't have to reduce staff.

[00:33:08] They can continue buying from the value chain in spite of these macros that we're seeing.

[00:33:15] So just keeping on the theme of impact, obviously your work is impact focused.

[00:33:20] So how would you go about measuring the impact of your investments?

[00:33:25] I think from the get go, before we even go into the investment, we're very clear on the impact metrics that we want to monitor.

[00:33:33] And we align with the portfolio company so they don't give a surprise.

[00:33:36] All right, we need this report from you.

[00:33:38] No, we before we go in, it's agreed.

[00:33:42] This is what we want reported.

[00:33:44] This is how this is we will establish a baseline and we'll expect growth on on this throughout the life cycle of the investment.

[00:33:53] And if you can't agree to that, obviously, that's going to be maybe we're not going together further down the line.

[00:34:00] Right. So it's good to have those discussions up front.

[00:34:02] And then we do have some metrics that are reported monthly.

[00:34:08] Some are reported quarterly and they go into our quarterly reports because everybody forgets.

[00:34:12] We didn't we didn't go into dig into our pocket and get this money that the fund gives out.

[00:34:18] We have our investors that this is very important to them because we have very much impact focused investors as well.

[00:34:25] So we will monitor this when we are not the portfolio companies, not meeting targets.

[00:34:31] We will support them in terms of is it that you don't know how or is there something that we don't understand about your business that you can't meet this impact metric?

[00:34:41] So from the get go, we align with the portfolio company in terms of how will these are the impact metrics we want.

[00:34:49] This is how we're going to collect them on this frequency.

[00:34:51] Are you good? Yes. No.

[00:34:53] And we take it from there.

[00:34:54] So is there a specific criteria that you use to assess whether a company is contributing to social or environmental impact in its community?

[00:35:04] Apart from the direct, for example, if we take jobs as a impact metrics on the S side of ESG and from an impact perspective.

[00:35:13] So there's obviously the direct jobs that companies create, i.e. the direct hires.

[00:35:20] But also there's job creation and indirect job creation through the value chain that supports their business.

[00:35:28] So we track that as well. So that's how we know, OK, beyond how many farmers are you procuring your raw materials from?

[00:35:37] We track that. So that would be a way to understand how this company that makes biscuits or processes cassava impacts the community in which it operates.

[00:35:50] And how many of the people that they hire are female, right?

[00:35:54] That's another way we look at it in terms of are we achieving our gender targets?

[00:36:00] And so that's how we look at it, basically, in terms of direct and indirect impact.

[00:36:05] And we track that.

[00:36:07] So from the work that you're currently doing, the fantastic portfolio companies that you're currently working with,

[00:36:14] are there any exciting or emerging trends that you're seeing in the impact investment or gender lens investment space that you're excited about?

[00:36:26] I think this thing that I told you that's driving our new fund, this intersection that,

[00:36:31] yes, get the capital in the hands of gender smart businesses.

[00:36:34] But this whole linkage, because we invest in quite a few manufacturing and agribusinesses,

[00:36:41] the exciting thing I'm we're seeing is this linkage with climate in terms of energy access or the and,

[00:36:50] you know, out there.

[00:36:53] I think that's the exciting bit, because if you're doing an isolation of just trying to find a climate rated company,

[00:36:59] it's interesting. But then when you now see it's a female owned or female led business and they are going green in their processes,

[00:37:08] it's super exciting because then the story of why we should go green just makes sense,

[00:37:13] because it's not a tick box exercise.

[00:37:16] It actually impacts your profitability.

[00:37:19] And so that's very exciting to me as we look at the market.

[00:37:25] So that would be one thing that I would say what I'm seeing in terms of standalone just investing in females.

[00:37:33] Wonderful. But when you can see that you can go green at the same time and have climate parameters included,

[00:37:43] it's super exciting. And I see there's going to be more of that as we as this mainstreaming of climate matters as well happens.

[00:37:52] So if we move from current trends and look at the future,

[00:37:57] how do you see the gender lens investment space on the continent evolving over the next few years?

[00:38:05] I think it's going to be almost impossible for any fund to say they don't invest with a gender lens in some capacity,

[00:38:15] not 100% of their fund, but at least some part of it is becoming so mainstream,

[00:38:20] mainstream, which is super exciting.

[00:38:23] I think that's what we're going to see in terms of,

[00:38:26] I might not be 100% a gender lens fund, investing fund,

[00:38:31] but some proportion intentionally,

[00:38:34] I'm going to earmark a percentage of my fund to invest in female led,

[00:38:40] female owned businesses.

[00:38:41] So that's the way I see this gender smart investing evolving in the next couple of years,

[00:38:47] that there'll be no one that can get away from it in a sort of way.

[00:38:52] And I think that's where it's going now that everybody's conscious of it and the importance of it.

[00:38:57] Through companies like Alethea,

[00:39:00] IDF and doing this to show that it actually makes sense,

[00:39:05] it can be done.

[00:39:06] So I think that is what we're going to see,

[00:39:08] that intentionality of most fund managers

[00:39:11] in earmarking a certain percentage of their fund to be gender smart investing.

[00:39:17] So if we look closer to home,

[00:39:20] what's next for you and Alethea Capital?

[00:39:22] What work or role will you be playing in Africa's gender smart space in the next five years?

[00:39:31] We're just deepening what we've been doing.

[00:39:34] Like I said,

[00:39:34] the next phase is this new fund we're rolling out,

[00:39:38] which is what we're calling for the moment gender 3.0.

[00:39:43] So this intersection of gender, climate and digital transformation,

[00:39:48] that will be our focus.

[00:39:49] We're going to be raising this $200 million fund.

[00:39:52] And we want to make sure that the growth stage SMEs that meet these parameters

[00:39:57] get access to capital to scale.

[00:40:00] And we really want the businesses on the continent that we invest in to scale.

[00:40:05] And therefore they can make impact in the communities that we operate in.

[00:40:10] So we're not changing the mantra,

[00:40:12] we're just deepening it and adding on intentionally this area of climate

[00:40:18] through energy access and energy and climate resilience,

[00:40:22] which affects a lot of women,

[00:40:23] women-owned businesses,

[00:40:24] and also getting them efficient through digital transformation.

[00:40:29] So that's, yeah,

[00:40:30] that's what I see myself working on for my singular focus for the next couple of years.

[00:40:36] Brilliant, brilliant.

[00:40:37] Thank you for sharing that.

[00:40:38] Quote of the week.

[00:40:39] As people,

[00:40:40] we often have quotes,

[00:40:42] mantras,

[00:40:43] proverbs,

[00:40:44] affirmations that keep us going when times are good or when times are challenging.

[00:40:49] Do you have one that you can share with us today?

[00:40:52] Gosh,

[00:40:52] let me see.

[00:40:54] I think it's,

[00:40:55] it's just something that keeps me going when things look a bit tough.

[00:40:59] I think,

[00:41:00] and I don't,

[00:41:00] I don't know if it's a quote or whatever,

[00:41:02] but I'll just say it's a,

[00:41:03] you know,

[00:41:04] Wendy quote.

[00:41:06] It might seem tough now,

[00:41:09] but perseverance to not let the tough times surmount you.

[00:41:15] Getting through that is so important because the sunshine is on the other side.

[00:41:18] So that's what I'll just say.

[00:41:19] I just do.

[00:41:20] I just persevere,

[00:41:21] persevere and resilience.

[00:41:23] Beautiful.

[00:41:23] Nice,

[00:41:24] short and straight to the point.

[00:41:26] Awesome.

[00:41:27] So we've come to the end of today's conversation.

[00:41:29] It's been a great conversation.

[00:41:31] Thoroughly enjoyed it.

[00:41:32] I was wondering if you had any closing remarks,

[00:41:35] final cause to action for people who are interested in what you're doing at Alivia Capital,

[00:41:40] or just interested in the general gender smart investment space.

[00:41:45] Definitely.

[00:41:46] We're always,

[00:41:47] our doors are always open.

[00:41:49] You can find out more about Alivia Capital and the work we do on our website,

[00:41:53] www.thealithia.com.

[00:41:55] And if you're interested in finding more about the next phase of gender smart investing,

[00:42:02] and you can also find our toolkit,

[00:42:04] our gender smart investing toolkit on our website,

[00:42:07] and you can reach out to me.

[00:42:09] And then we're all,

[00:42:10] we are currently,

[00:42:11] like I said,

[00:42:11] raising.

[00:42:12] So if you're interested in following us on this journey,

[00:42:15] to invest more in the gender smart space,

[00:42:19] with a link to climate and digital,

[00:42:21] or if you have expertise that we can learn from,

[00:42:23] we're happy to connect with you.

[00:42:25] Fantastic.

[00:42:27] Thank you for joining us on the podcast today,

[00:42:29] Yowanda.

[00:42:30] It's been great hearing about,

[00:42:32] I guess,

[00:42:32] your journey,

[00:42:33] your insights,

[00:42:34] your experience.

[00:42:35] And I'm looking forward to seeing how this new fund evolves or is launched and

[00:42:40] just keeping in touch with the great work that you're doing.

[00:42:43] Thank you so much,

[00:42:44] Chessa.

[00:42:44] Thank you for having me.

[00:42:46] Thank you to everyone who has listened and stayed tuned to the podcast.

[00:42:50] If you've enjoyed this episode,

[00:42:52] please subscribe,

[00:42:53] share,

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[00:43:01] Thank you.

[00:43:02] And see you next week for the Unlocking Africa podcast.