Can women-led asset creation be the key to climate resilience in Africa?

A new class of African climate investors is challenging traditional climate investment benchmarks by focusing on women's economic power as a key solution to climate resilience in Africa. Jo Opot, Founding Director of Gather Ventures, explains that investing in women and girls to reduce carbon emissions has been identified as one of the most effective ways to combat climate change, surpassing other solutions such as backing electrical vehicles or wind turbines. Opot highlights the significant impact of empowering women economically, leading to household resilience, stabilized communities, and climate-smart behaviors crucial for achieving desired climate solutions. At Gather Ventures, the focus is not only on increasing incomes but also on ensuring that women have assets and intergenerational wealth. By empowering women and creating sustainable economic opportunities, the ripple effects are profound, leading to long-term stability and resilience in the face of climate challenges. Opot emphasizes that returns should not only be measured in financial terms but also in environmental and social performance. The investment thesis at Gather Ventures is centered around ensuring that all stakeholders, including smallholder farmers and construction workers, benefit from the returns generated. One of the entities in Gather's portfolio, Giraffe Bioenergy, is an example of how investing in women can have multiple positive outcomes. Giraffe aims to convert cassava into bioethanol for clean cooking fuel, addressing a market gap in Kenya while empowering female smallholder farmers and introducing opportunities for women to work in the manufacturing sector. Opot explains that Gather Ventures has allocated a portion of its equity in Giraffe to ensure that smallholder farmers benefit from the venture's success in the long run. In terms of mainstream capital and the value it places on women in Africa's climate space, Opot emphasizes the need for context-sensitive structuring and a combination of equity, debt, and grants. Drawing on reports from Project Drawdown and McKinsey, Opot highlights the significant economic gains that can be achieved by focusing on women's health, participation, and productivity in Africa. The intersection between climate and gender presents an opportunity for investors to generate returns while making a positive impact on the environment and society. In conclusion, the investment in women's economic power emerges as a new approach to climate resilience in Africa, offering a pathway to sustainable development and a more inclusive and equitable future for the continent.