Scaling sustainable manufacturing and energy transition for women-led SMEs in Africa

The factory floor is alive with the whir of machines, the smell of sun-dried cassava, and the steady hum of solar-powered systems. In the heart of southwestern Nigeria, Psaltry International, Africa’s largest cassava processing facility, is breaking ground, not just in food processing, but in sustainable energy leadership. The company, led by Oluyemisi Iranloye, a woman, now operates on a 1-megawatt (MW) solar power system with a 1.6 MW battery backup, ensuring energy independence, reducing carbon emissions, and lowering costs.

This story is not an exception; it is the future.

Across Africa, women-led businesses are rewriting the script on manufacturing, sustainability, and inclusive economic development. Historically sidelined in the industrial economy, women entrepreneurs are now pushing the boundaries of what is possible in one of the world’s most dynamic yet challenging business environments.

“Women-led SMEs are the backbone of inclusive economic growth, yet they remain underserved. By focusing on these businesses, we are not just bridging funding gaps; we are unlocking untapped potential, driving job creation, and fostering sustainable development,” Yewande Adewusi, chief operating officer and operating principal at Alitheia, said.

High Stakes of Manufacturing in Africa – and for Women

Agriculture and manufacturing are the foundation of every developed economy. In Africa, these sectors are even more critical; they are the lifeline for food security, job creation, and poverty reduction. Yet, while Africa holds 60% of the world’s uncultivated arable land and a fast-growing population, women entrepreneurs, especially in small and medium-sized enterprises (SMEs), face disproportionate risks. A lack of scale, erratic energy supply, limited financing, and policy bottlenecks combine to make growth challenging.

But that is changing, not by chance, but by strategy.

Women-led SMEs are increasingly recognised as high-impact, high-potential drivers of inclusive growth. They are at the forefront of adopting Environmental, Social, and Governance (ESG) practices, often instinctively, because they understand firsthand the cost of inefficiency, climate shocks, and social exclusion.

Catalysing Change: Alitheia Capital and Manufacturing Africa

This growing wave of transformation is being propelled by visionary partnerships. Chief among them is the collaboration between Alitheia Capital, via its Alitheia IDF fund, Sub-Saharan Africa’s largest gender-lens investment fund, and Manufacturing Africa, a UKaid-funded programme designed to attract £1.2 billion in foreign direct investment and create 90,000 jobs across the continent by 2026.

Alitheia Capital, an impact-driven private equity and financial advisory firm headquartered in Lagos, identifies and scales high-potential women-led enterprises across Africa. Its investees include sector-defining businesses like Reel Fruit, SKLD, and Psaltry International.

In parallel, Manufacturing Africa, funded by the UK’s Foreign, Commonwealth & Development Office (FCDO), supports SMEs with world-class advisory services. In five years, it has supported 40 companies across Africa, enabling 13 of them to successfully raise capital. Women-led businesses, especially in agribusiness and manufacturing, are a major focus.

Together, these partners have launched two critical platforms: Nzinga by Alitheia Capital and the Green Business Platform by Manufacturing Africa, both designed to help women-led SMEs scale sustainably.

Breaking the Energy Barrier

Energy remains one of the biggest barriers to scaling manufacturing in Africa. According to the 2022 Energy Progress Report by Tracking SDG 7, Nigeria has one of the lowest electricity access rates globally, with 92 million people, nearly half the population, living without reliable power. Businesses face daily blackouts, fluctuating diesel prices, and uncertainty worsened by subsidy removals.

For SMEs led by women, the impact is particularly harsh. But some are finding smart, green solutions.

Take SKLD, a nationwide educational and lifestyle retail chain. It’s switched to a hybrid energy system, reduced diesel consumption from 700 litres to 200 litres per month, cutting monthly fuel costs from ₦770,000 to ₦200,000, according to founder Temilola Adepetun. Or Reel Fruit, led by Affiong Williams, which found that compressed natural gas (CNG), backed by liquefied petroleum gas (LPG), was the most cost-effective energy option for its factory in Abeokuta, saving 2.7x compared to diesel.

These decisions are not just operational choices; they are acts of leadership in Africa’s energy transition.

Financing the Future: Awareness is Power

One of the biggest misconceptions about green energy is that it’s unaffordable. In reality, as Bukola Badmos FCA, chief finance officer at Starsight Power Utility Ltd, explains, financing models have evolved. Options like “lease-to-own” and “energy-as-a-service” eliminate the need for heavy upfront capital. But uptake remains low, not due to cost, but due to a lack of awareness.

Starsight conducts energy audits, tailors solutions to clients’ needs, and assumes technical risk, all at little to no upfront cost for SMEs. Banks are also stepping in: Sterling Bank, for instance, offers a 9% interest fund exclusively for women-led businesses, which Psaltry International has accessed.

Platforms of Power: Nzinga and Green Business

Launched on 18 June 2025, Nzinga is Alitheia Capital’s digital platform for free business advisory, resilience building, and ecosystem support. It complements Manufacturing Africa’s Green Business Platform, which provides energy transition and manufacturing support for women-led SMEs.

These platforms are vital. Not only do they offer tangible business support, but they also symbolise a shift in how we build economies: not by excluding women or treating them as an afterthought, but by putting them at the centre of transformation.

The Diversity Dividend

Why does this matter? Because investing in women yields what economists now call the “diversity dividend” – improved commercial outcomes, stronger governance, higher innovation, and reduced business risk. It’s not just ethical – it is strategic.

A 2019 McKinsey report estimated that advancing gender equality could add $316 billion to Africa’s GDP by 2025 – roughly 10% of current output. That future is closer than we think.

The Road Ahead

“We are deliberate about mainstreaming female economic empowerment,” said Jonny Baxter, British deputy High Commissioner to Nigeria, at a recent WOMAN (Women in Manufacturing, Agribusiness and Nutrition) event in Lagos. “Our Green Business platform provides free business advice, leadership training, and access to finance for women-led manufacturers.”

That deliberate focus is what Africa needs. Manufacturing, energy transition, and gender inclusion are not separate goals – they are interdependent levers of sustainable development.

“The W.O.M.A.N event is a powerful celebration of resilience, innovation, and the transformative impact of women in business. At Alitheia, we believe in creating spaces where women can connect, learn, and grow – because when women thrive, economies thrive,” Adewusi said.

Women-led SMEs in Africa are not just surviving. With the right partnerships, financing, and platforms, they are scaling sustainably, profitably, and boldly.

And in their growth lies the future of the continent.