African companies with boards of directors that are at least 25 percent female experience about 20 percent more earnings than the industry average.
Management consulting firm McKinsey & Company recently released its “Women Matter Africa” report. It draws on surveys conducted with 55 leading companies across the continent; interviews with 35 African women leaders; and analysis of the financial performance of 210 publicly-traded African businesses.
Some of the reasons why companies with more women in leadership positions perform better include: enhanced risk management; openness to new ideas and ways of doing things; improved collaboration and cooperation between stakeholders; and stronger ethics and consistency in making fair decisions.
Companies with greater gender diversity are also better equipped to understand the needs of female customers who directly influence 70-to-80 percent of global spending.
What companies can do to improve gender diversification
Africa has more women in executive committee, CEO and board roles than the global average, according to the report. However, there is still room for improvement. Just 5 percent of CEOs and 29 percent of senior managers are women in Africa. Only 36 percent of all promotions go to women.