Sne Dlamini, Head of Client Management at Old Mutual Investment Group
The Broad-Based Black Economic Empowerment (B-BBEE) Act, along with the Codes of Good Practice, have contributed immensely to promoting and empowering women in South Africa, however, there is still a great deal of work to be done. Women are still being sidelined in boardrooms and not considered for key leadership roles, especially in asset management.
However, gender-lens investing is starting to gain traction and could be key in guiding “captains of industry” to deliver on gender agenda commitments. This involves the deliberate allocation of capital to companies that actively promote women’s empowerment, recognising that such investments can generate competitive financial returns while contributing to a more equitable and inclusive society.
The key impacts of gender-lens investing are unpacked as follows:
1. Investing in women-owned or women-led enterprises to empower women economically, foster job creation and economic growth.
2. Promoting workplace equity through investment in companies committed to gender equity in staffing, management, board representation, and supply chains.
3. Investing in gender-positive products and services that improve the lives of women and girls in healthcare, education, safety, and financial inclusion.
4. Influencing corporate behaviour by signalling that gender equality is a crucial aspect of good business practice.
5. Driving financial performance, as companies with diverse management teams often show stronger results.
6.Addressing systemic inequalities by dismantling barriers to women’s economic empowerment and progress.
Within South Africa’s financial services landscape, the principles of gender-lens investing hold particular significance. Given the nation’s complex history and the need to address systemic inequalities, integrating a gender perspective into investment strategies presents a compelling opportunity for social and economic transformation.
Global initiatives such as the 2X Challenge, led by Development Finance Institutions and International Financial Institutions, have encouraged private market investors to adopt gender-lens investing in Africa and other emerging markets. From 2021 to 2022, the initiative drove $16.3 billion in gender-lens investments, benefiting 473 businesses. The Global Impact Investing Network also provides resources to help close the “gender gap” in social, political, intellectual, cultural, and economic attainments.
While adoption is growing, gender-lens investing has yet to become mainstream — a practice desperately needed to address scars dating back centuries. True transformation lies in reshaping workplace culture and dismantling societal constraints that unfairly burden women. Fit-for-purpose policies must challenge cultural norms, redefine gender roles, and support women’s aspirations beyond the boardroom.
The 2024 Just Share report on Women in Leadership found that women hold 36% of board positions among JSE Top 40 companies but only 23% of executive management roles. While board representation has modestly increased, the proportion of women in top operational and strategic positions has declined.
In asset management, underrepresentation is even more pronounced. Women make up just 17.2% of portfolio management professionals in South Africa, according to the 2023 EPPF Diversity in Asset Management research. Most occupy analyst roles, and systemic barriers to advancement remain. The discrepancy between the 46% of women in South Africa’s economically active population and their representation in leadership underscores a substantial untapped talent pool.
The time has come for asset owners and stakeholders to probe gender issues in South Africa. We all have a role to play in changing this status.
Old Mutual Investment Group is the leading large asset manager on diversity, equity, and inclusion (DEI) in South Africa*. Internally, 32% of the company is women-owned, with 50% board representation and 31% of investment professionals being women. Externally, funds such as the Old Mutual Global ESG Equity Portfolio and the Old Mutual African Frontiers Fund employ a gender lens, prioritising companies with significant women leadership at the board level to foster both financial returns and community upliftment.
The journey ahead requires conviction and intent, but we stand firm in charting the path for gender equality in our industry.
*27Four DEInvest Survey 2024
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