Capital + SAFI | Capitalizing on Gender Equality in Agriculture and Beyond – A 2XChallenge Impact Assessment

By | Cecilia Arandia
Sustainability and Impact Officer, Capital + SAFI

According to studies cited by the World Bank, if women started and expanded new businesses at the same rate men do, there would be global economic gains of between 5 trillion and 6 trillion US dollars (World Bank, 2023). By supporting and fostering success for women entrepreneurs, not only are we creating a more equal world, but also building stronger, more resilient economies.

Given that access to credit is a crucial factor for entrepreneurial success, at Capital+ SAFI, we have been supporting financial inclusion through our Sembrar Micro Capital fund, which invests in microfinance institutions in Bolivia, since 2011. These entities have given us an invaluable lesson about gender inclusion, as there are a great number of women who access their financial products. With each passing year, our strategy has been evolving toward the creation of shared value, and, currently, we prioritize sustainable and equal agriculture, because it is of great importance to our country. For this reason, and through this lens, one of our impact goals is to reduce, through the companies and financial institutions in our portfolios, the disparities women face in agricultural systems.

In view of this goal, through the 2023 administration, we have conducted an assessment of our portfolio without public offerings through the information reported by our issuers, following the criteria of the 2X Challenge. The purpose of this assessment was to have an initial overview of gender practices within the agricultural sectors where we invest and to discuss opportunities for shared value creation in their value chains. 

The conclusions of these assessments rest on three fundamental aspects: 

1. There are few women in leadership positions at the companies we invest in from the agricultural sector. On average, only 21.2% of management positions are filled by women and only 16.2% of executives are women. The majority of these companies in our portfolio were founded by men. On the other hand, female participation in this sector averages 21% with respect to the total workforce. The gross gender wage gap is less than 15% in our agricultural sector portfolio. 
2. There is a discrepancy in the participation of women in the supply chain in different agricultural subsectors. For example, in the chestnut sector, women have more active economic participation compared to other sectors, such as the soybean sector.  
3. Out of the 96 initiatives mapped in our portfolio’s total (including sectors other than agriculture), only six correspond to gender equality initiatives, of which the vast majority correspond to initiatives from microfinance entities acting as issuers. 

This first assessment gives us a baseline for understanding and directing our efforts in those aspects where we should concentrate. However, in spite of giving us more clarity, it also raised questions surrounding the reasons for these results and questions about what the best way to promote gender equality in our portfolio could be. We do not yet have many answers to these questions and we are aware that it is a long process toward the legacy that we want to leave for future generations. The following are some of the lessons we have learned along the way in the last few years: 

1. Creating or promoting gender initiatives without involving and connecting with the women who are being benefited by these initiatives is like building a bridge without considering the people who might go across it. The bridge may look solid on paper, but it will be useless if it doesn’t connect to the real needs of its users.
2. It is not about developing a separate strategy for equality, but rather a business strategy that integrates equality at the core of the business’ driving force, in a holistic way. Only then would a company be able to discover new drivers of value generation for the business and long-term sustainability. The financial and economic impact should not be separate from the inclusive business models we support. 
3. Diversity brings forth more creativity, innovation, and problem-solving from different perspectives. However, this is only true if a culture of collaboration, active listening, and equal treatment is supported throughout the organization.  

We will champion diversity, equality, and inclusion strategically integrated into the business models of our issuers, thus avoiding a complete dependency on good intentions, which may not be enough to fulfill our goals. 

We actively believe that the role of women, as well as the role of men, is something essential in our societies. Our business strategy depends on the potential of Bolivian men and women who lead, work, and supply the companies and sectors in our portfolios. In that regard, we are aware that, should we fail to take advantage of the leadership, creativity, and capacity of women, we, as a country, will miss out on their economic and social value.