Africa’s economic growth hinges on gender and social investment – Business Insider Africa

Report on Inclusive Growth and Sustainable Development in Africa

Executive Summary: Aligning Growth with Sustainable Development Goals

Africa’s demographic profile, with over 60% of its population under 25, positions it as a significant global growth engine. However, current economic models, reliant on commodity cycles and large-scale infrastructure, are proving insufficient for achieving broad-based prosperity and are not aligned with the Sustainable Development Goals (SDGs). To transform the continent’s potential into a sustainable dividend, a strategic shift is required towards inclusive, resilient, and equitable growth. This approach directly targets key SDGs, including SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities). The Gender Equality and Social Inclusion (GESI) Roadmap launched in Nigeria serves as a scalable benchmark for this system-level transformation, moving from ad hoc interventions to a coordinated, evidence-driven strategy for unlocking Africa’s full potential.

The Economic Imperative for Gender Equality (SDG 5)

The Cost of Financial Exclusion

The economic exclusion of women represents a significant inefficiency hindering Africa’s progress towards the SDGs. Despite their substantial contributions, women face systemic barriers that limit both their potential and the continent’s overall economic advancement. This exclusion directly undermines SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth).

• Women constitute approximately 58% of Africa’s self-employed population.
• Female entrepreneurs contribute an estimated 13% to the continent’s total GDP.
• A substantial financing gap of $42 billion exists for women entrepreneurs across business value chains.
• In 2024, women-founded startups received only 2% of total venture capital funding, highlighting entrenched gender bias in capital allocation.

The Multiplier Effect of Gender-Lens Investing

Investing in women is a powerful macroeconomic accelerator for achieving multiple SDGs. Closing the gender financing gap not only promotes SDG 5 but also creates a cascading effect across other development targets.

• Bridging the financial gap for women could boost Africa’s economy by up to $316 billion.
• Women reinvest a significantly higher percentage of their income into family health (SDG 3), education (SDG 4), and nutrition.
• This reinvestment creates an intergenerational human capital multiplier, fostering a skilled and healthy workforce for the future, thereby advancing SDG 8.

A Framework for Comprehensive Social Inclusion (SDG 8 & SDG 10)

Achieving sustainable growth requires intentionally removing economic, political, and social barriers for all marginalized groups, a core tenet of SDG 10 (Reduced Inequalities).

Empowering the Youth Demographic

To convert Africa’s youth bulge into a demographic dividend, targeted investments are crucial for advancing SDG 4 (Quality Education) and SDG 8. This requires massive investment in vocational training and skills acquisition programs tailored to the demands of the digital and industrial economies.

Integrating Persons with Disabilities (PwDs)

An estimated 10-20% of Africa’s population comprises Persons with Disabilities, who face profound marginalization. Leveraging this underutilized talent pool is essential for achieving SDG 10. Comprehensive policies must be enacted to mandate accessibility in infrastructure and services and to promote inclusive hiring practices.

Bridging the Urban-Rural Divide

Addressing the disparity between urban and rural areas is paramount for equitable development and achieving SDG 9 (Industry, Innovation, and Infrastructure). Substantial investment is required in rural infrastructure, including:

• Roads and transportation networks.
• Reliable electricity access.
• Digital connectivity to integrate remote communities into national value chains.

A Scalable Model: Nigeria’s GESI Roadmap

The Nigeria Inclusive Capital Commitment 2035 Campaign, guided by the GESI Roadmap, provides a scalable proof-of-concept for gender-lens and inclusive investing. It offers an actionable blueprint for achieving measurable progress on SDG 5 and SDG 10.

Strategic Objectives (2025–2035)

The roadmap outlines ambitious, measurable targets designed to democratize capital and foster an inclusive investment ecosystem.

1. Mobilize a cumulative $8.0 billion in gender-inclusive capital.
2. Secure $1.5 billion from domestic capital pools to ensure local ownership and sustainability.
3. Develop and track 40 inclusive financial products tailored for women, youth, and PwDs.
4. Ensure 90% of General Partners integrate GESI principles into their investment decision-making.
5. Enact 20 new policy and regulatory instruments to create an enabling environment for inclusive finance.

Recommendations for Multi-Stakeholder Action (SDG 17)

A cohesive effort from governments, the private sector, and development partners is essential, reflecting the principles of SDG 17 (Partnerships for the Goals).

Public Sector Responsibilities

• Implement Gender-Responsive Budgeting to align national financial planning with SDG 5.
• Mandate the collection of disaggregated data (by gender, location, age, disability) to measure and track inclusion outcomes effectively.
• Establish GESI as a core macroeconomic priority.

Private Sector and Investor Engagement

• Utilize Impact Investing and Environmental, Social, and Governance (ESG) frameworks to direct capital towards measurable social outcomes.
• Promote Supply Chain Diversity by actively sourcing from women- and minority-owned businesses, contributing to SDG 8 and SDG 10.

Regional Integration Mechanisms

• Embed inclusion mechanisms within the African Continental Free Trade Area (AfCFTA) implementation to ensure the benefits of a single market are equitably shared, particularly for women-led MSMEs.

Conclusion: Unlocking the New Inclusive African Dividend

By making intentional, strategic investments in gender equity and social inclusion, Africa can unlock its full human potential. This approach is the most direct path to achieving the Sustainable Development Goals, transforming the continent’s demographic strength into a lasting, shared prosperity for future generations.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 5: Gender Equality

  This is a central theme of the article. It extensively discusses the economic exclusion of women, the “$42 billion financing gap” for women entrepreneurs, and the need for gender-lens investing. The Gender Equality and Social Inclusion (GESI) Roadmap is presented as a key solution to ensure women’s full economic participation.

• SDG 8: Decent Work and Economic Growth

  The article’s primary focus is on achieving “sustainable, broad-based prosperity” and “inclusive growth.” It addresses job creation, particularly for the youth, and promotes entrepreneurship, noting that women constitute “58% of the self-employed population” in Africa.

• SDG 10: Reduced Inequalities

  The article is fundamentally about reducing inequalities. It calls for removing “economic, political, legal, and social barriers for all marginalized groups,” specifically mentioning women, youth, Persons with Disabilities (PwDs), and rural populations who face “profound marginalization.”

• SDG 9: Industry, Innovation and Infrastructure

  The article highlights the need for infrastructure development to foster equitable growth. It specifically calls for “directing substantial investment toward essential rural infrastructure, which includes building and maintaining roads, ensuring reliable access to electricity, and, most critically, establishing digital connectivity.”

• SDG 4: Quality Education

  To address the “youth bulge,” the article emphasizes the need for “massive and targeted investment in essential vocational training and skills acquisition programs, specifically those tailored to meet the demands of the digital and industrial ages.”

• SDG 17: Partnerships for the Goals

  The article advocates for a “cohesive effort from governments, development partners and the private sector.” It details the GESI Roadmap, a multi-stakeholder initiative, and calls for mobilizing financial resources, such as the target to “mobilize a cumulative $8.0 billion in gender-inclusive capital.”

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 5.a: Undertake reforms to give women equal rights to economic resources, as well as access to… financial services.

  The article directly addresses this by highlighting the “$42 billion financing gap” for women and proposing solutions like the GESI Roadmap, which aims to “democratize capital” and track “inclusive financial products specifically tailored for women.”

• Target 8.3: Promote development-oriented policies that support… entrepreneurship, creativity and innovation.

  The article supports this by noting that Africa “leads the world in entrepreneurship” and that women are a significant part of this, contributing “roughly 13% of Africa’s GDP annually.” The focus on funding startups and MSMEs aligns with this target.

• Target 8.5: Achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities.

  The article explicitly calls for policies that promote “inclusive hiring practices” to leverage the “underutilized talent pool” of Persons with Disabilities (PwDs) and for investments to transform the youth bulge into a “demographic dividend” through job creation.

• Target 10.2: Empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability… or other status.

  This is the core message of the article. The GESI framework is designed to dismantle barriers for women, youth, and PwDs, ensuring that growth creates “tangible opportunities for the hundreds of millions who have been historically marginalised.”

• Target 4.4: Substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship.

  The article directly advocates for this by stating there must be “massive and targeted investment in essential vocational training and skills acquisition programs” to capitalize on Africa’s young population.

• Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… with a focus on affordable and equitable access for all.

  The article’s call to address the “deep disparity between urban and rural centers” by investing in “essential rural infrastructure” like roads, electricity, and digital connectivity directly corresponds to this target.

• Target 17.3: Mobilize additional financial resources for developing countries from multiple sources.

  The GESI Roadmap’s financial goals to “mobilize a cumulative $8.0 billion in gender-inclusive capital and secure $1.5 billion from domestic capital pools” are a clear example of actions toward this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Financial Indicators: The article provides several quantifiable financial metrics that can serve as indicators.
  • The size of the financing gap for women entrepreneurs (currently “$42 billion”).
  • The amount of venture capital funding received by women-founded startups (currently “2% or $48 million”).
  • The cumulative amount of gender-inclusive capital mobilized (GESI target: “$8.0 billion”).
  • The amount of capital secured from domestic pools (GESI target: “$1.5 billion”).
• Policy and Product Indicators: The GESI Roadmap outlines specific, measurable outputs.
  • The number of inclusive financial products tailored for women, youth, and PwDs (GESI target: “40”).
  • The number of new policy and regulatory instruments enacted to support inclusion (GESI target: “20”).
  • The percentage of General Partners with integrated GESI principles (GESI target: “90%”).
• Demographic and Economic Indicators: The article mentions several statistics that can be tracked over time.
  • The proportion of the self-employed population who are women (currently “58%”).
  • The contribution of women to Africa’s GDP (currently “roughly 13%”).
  • Rates of poverty, employment, and education access for PwDs (currently facing “higher rates of poverty and substantial barriers”).
• Implied Indicators: The article implies the need for further measurement.
  • The collection and use of “disaggregated data by gender, location, and age to effectively measure and track inclusion outcomes.”
  • The proportion of the rural population with access to reliable roads, electricity, and digital connectivity.
  • The number of youth participating in vocational and skills acquisition programs.

4. SDGs, Targets, and Indicators Summary

Source: africa.businessinsider.com