Gender equality: a multiplier for development
In the infrastructure sector, gender inclusion is particularly powerful because these assets shape the backbone of our economies. When infrastructure is designed with women in mind – offering safe transport, access to energy, and digital connectivity – the ripple effects are far-reaching: girls stay in school longer, women are able to enter the workforce, and entire communities become more resilient.
Investments into the infrastructure sector traditionally focus on economic metrics: GDP growth and job creation on a macro level; and financial returns through tools such as the internal rate of return and payback periods on an individual level for investors. However, the most transformative infrastructure projects are those that consider their differential impact on women and men.
Traditional investment models systematically underestimate the risks associated with inequality such as reinforcing exclusion, creating long-term vulnerabilities that manifest as social instability, talent shortages, and market inefficiencies. The 2021 Global Gender Gap Report indicates it will take 135.6 years to close the gender gap worldwide at current rates. For investors, this represents a century of untapped market potential and accumulating systemic risk.
Evidence on the ground
As someone who represents institutional investors on the boards of infrastructure project companies, I have had a front-row seat to the shifts taking place in our industry. Over the past decade, I have seen meaningful progress in women’s participation at board and senior management levels – particularly in the renewable energy sector.
The business case for gender diversity at this level is unambiguous. McKinsey & Company’s research demonstrates that organisations in the top quartile for gender diversity on executive teams are 25% more likely to achieve above-average profitability. More striking still, companies with the most ethnically diverse executive teams outperform their peers by 36% in profitability.
What is even more compelling is what I have witnessed on the ground. Many of the projects we invest in embrace community development obligations – such as support for schools, clinics, or training centres in neighbouring communities. When these initiatives actively involve women, the outcomes are notably stronger, from increased health indicators in the area to enabling hundreds of women to start micro-enterprises online.
Electricity access is a prime example to illustrate this. In rural sub-Saharan Africa, women and girls spend hours each day collecting firewood. Electrification reduces this burden, freeing up time for education or income-generating activities. When infrastructure projects actively include women in planning and employment, the multiplier effects are remarkable.
Research on India’s rural roads programme shows that improved road construction lowers mobility restrictions for women and improves social norms, with positive impacts on education. Considering that 70% of Africa’s rural population lacks access to all-season roads, investments into an upgraded road network will not only ensure safety, but it will also unlock untapped demand.
The return on investment in girls’ education is extraordinary. According to the World Bank, at a macroeconomic level, countries lose $12-30 trillion in lifetime productivity and earnings when girls don’t complete their education. The UNESCO Institute for Statistics notes that in sub-Saharan Africa, where 23% of girls of primary school age remain out of school, targeted educational investments can unlock massive economic potential.
Conclusion: the power of infrastructural investment
The investment industry stands at an inflection point. As traditional sources of alpha become increasingly scarce, gender-aware alternative investment strategies offer a genuine competitive advantage. They mitigate long-term risks, provide diversification, and access growing markets that conventional approaches miss.
By considering environmental, social, and governance (ESG) factors in investment decisions, asset managers can create value while protecting capital and delivering risk-adjusted returns for clients. Investors who embrace this broader view are likely to see long-term gains. Projects that serve everyone, including women, tend to enjoy better community buy-in, lower operating risk, and improved development impact.
Infrastructure that empowers women does not just uplift individuals; it transforms economies. Investors who measure what truly matters, not just short-term returns but long-term, inclusive value, will lead the way in building resilient, high-impact portfolios.
