Over the past 10 years Africa has progressed in gender diversity in leadership, however only five percent of CEOs (Chief Executive Officers) in the Private sector are women compared to the four percent in the world according to McKinsey Women Matter report on Africa recently published reports new24Wire.
“In terms of gender diversity, one of the key findings is that we [Africa] are doing well compared to the rest of the world and we have made progress but we are not making the most of the opportunity,” explained Lohini Moodley, partner at McKinsey.
According to the report, earnings before interest and tax was on average 20 percent higher in companies with a quarter share of women that the industry average. The research explained that it was diversity in the organizations that influence risk management, decision making and board dynamics thereby impacting the financial performance.
“When more women are involved in decision making, the dynamics of which a decision is reached are different,” added Tania Holt, partner at McKinsey.
The report showed that 70percent to 80percent of global consumption is influenced by women, as women leaders relate to customers better.
Findings also show that female representation also varies by industry with the representation of women in industries traditionally dominated by men being lower.
44 percent of women in Africa hold line roles; these are roles that are critical for business activity to function such as operations and finance. The other more than half of the women hold support funtions in the Private sector, positions such as communications, human resources, legal among others.
Women in leadership have limited powers with the women in the government holding positions in social welfare among others that give them limited political influence.