Women make up 20 per cent of senior management positions in Southern Africa
Private companies and government entities are losing by not offering many women opportunity to serve at various leadership positions, a new survey documents
Research commissioned by McKinsey found out that companies with greater share of women on their boards of directors and executives for instance tend to perform better financially.
It says the earnings before interest and taxes (EBIT) margin of those institutions with at least a quarter share of women on their boards perform on average 20 percent higher than the industry average.
In the private sector at executive committee level, African women hold 23 percent of positions, compared with a global average of 20 percent. At Chief Executive Officer Level, they hold 5 percent of positions, compared with 4 percent globally, making Africa the top-performing region alongside the United States.
At board level, African women hold 14 percent of seats compared with a global average of 13 percent.
“Although the number of women in leadership positions may have risen, women do not necessarily have greater power. In the private sector, more than half of senior women occupy staff roles rather than the line roles from which promotion to CEO typically comes,” it says.
“In the public sector, approximately half of women cabinet ministers hold social welfare portfolios, with arguably limited political influence, that do not open doors to top leadership roles. Indeed, the increase in women’s share of cabinet roles appears to come more from the creation of new social welfare portfolios than from any real redistribution of power.”
The report provides results from surveys done in 55 companies based in Africa, interviews with 35 African women leaders and an analysis of the financial performance of 210 traded African companies.
It captured Kenya,South Africa, Botswana, Namibia, Zambia, Tanzania, Uganda, Nigeria, Cote d’Ivoire, Ghana, Senegal, Morocco, Tunisia, and Egypt
Women leaders with whom the researchers spoke to stress how the benefits of diversity extend to areas such as risk management, decision-making, and board dynamics – all of which can have an impact on financial performance.
Companies with a greater number of women in leadership positions tend to manage risk better – they are less likely to overpay when they make acquisitions, for example. And women leaders help companies relate to their customers better, as a company with greater gender diversity is better positioned to understand the needs of its female customers. With respect to consumer goods, for example, women directly influence 70 to 80 percent of global spending.
“Women can also bring different ways of working to management teams that enhance decision-making. These include openness to new perspectives, collaboration and inclusiveness and strength in ethics and fairness,” it says.
The report however consistently shows that based on its findings, countries around Africa are placing more importance on women leadership than the rest of the world.
In the private sector, the continent has the second highest representation of women in senior management positions than everyone else. The European Union is tops, with women holding 26 per cent of executive committee positions. Asia, Latin America and the US lag behind with percentages dropping into the mid to high teens.
Ultimately, regions in Africa are ranked with Southern Africa beating its neighbours with the highest representation of women in senior management positions:
1. Southern Africa: women make up 20 per cent of senior management positions.
2. East Africa: 16 per cent
3. West Africa: 11 per cent,
4. North Africa: 9 per cent.
The results show more women have a shot at reaching this level in healthcare and pharmaceuticals, while only 9 per cent of African women will reach senior positions in heavy industry. Despite the representation of women in various industries, none of the seven industries mentioned have a 50 per cent representation of women, meaning they are still male-dominated.