Impact investor Pauline Koelbl: the courage to close the gap

Pauline Koelbl is convinced that female entrepreneurs in Africa do not need charity, instead they need investors who can provide smart investments. Born in Rwanda, Koelbl holds American and Swiss nationalities and is the founder and managing partner of ShEquity, a company that promotes equal opportunities for both genders in Africa. Her daily work involves smart investing, creating trust and breaking down prejudice. Pauline Koelbl is part of ‘Team Transformation’, a group of five thought leaders who work with Partners in Transformation on transformation issues.

42 billion US dollars⁽¹⁾. This is the size of the investment gap between men and women in Africa, the so-called ‘gender funding gap’. In other words, USD 42 billion in investment is less available to female founders and entrepreneurs on the continent than to their male counterparts. USD 42 billion is roughly equivalent to the annual profits of global corporations such as Shell, Samsung or JP Morgan.  Entrepreneurs like Pauline Koelbl and her company ShEquity are working to close this huge gap. ‘We have set ourselves the target of catalysing one billion US dollars. That might sound overambitious, but it includes investments made by our partners who are either private investors or venture philanthropists. This huge gap exists for a groundless reason,’ says Pauline Koelbl. ’In many business ecosystems, there is still a lack of trust in African women entrepreneurs.’ 

Pauline Koelbl founded ShEquity in 2020 to foster this trust and give African women entrepreneurs an investment ecosystem platform. Koelbl not only invests in promising companies herself. She also promotes female-led African companies to potential investors.

⁽¹⁾ Unlocking Africa's Potential: Why Investing in Women is a Game-Changer | Our Africa, Our Thoughts

Empowering and supporting women

Why is it so important to promote female entrepreneurs in particular? ‘Women make up more than 50 per cent of the population in most countries around the globe. And they take care of the other 50 per cent,’ says Pauline Koelbl with a twinkle in her eye. The benefits of empowering women are obvious: promoting inclusive economic growth, combating poverty, increasing social justice and the overall well-being of children and households. This is particularly necessary in Africa, where women are usually primarily responsible for food production and operate over 40% of SMEs. In a global comparison, the proportion of women among entrepreneurs in Africa is also the highest at almost 25 per cent. ‘I meet so many women who have great business ideas and need support to transform these into viable businesses,’ says Pauline Koelbl. ’All they need is access to opportunities, the right tools and someone who is willing to invest in their business and to support its growth.’ 

Pauline Koelbl describes herself and her company as a catalyst trying to accelerate Africa’s sustainable development. Shortly after founding ShEquity, she and a business partner set up a programme to promote women-owned companies which is also a cornerstone of her company’s investment strategy: the ShEquity Business Accelerator (SHEBA). In a 17-week programme, female entrepreneurs are given all the tools they need to strengthen their company and become ready for investments. This is designed to minimise risks and increase the chances of attracting investment. ‘Many women don't just want to start a business,’ observes Koelbl. ’They start a business to solve a problem.’ Over 150 women-led businesses have already received support from SHEBA, and the programme received funding from USAID/Trade Hub West Africa.

Escape to the other side of the world

For over 20 years, Pauline Koelbl has been focusing on how organizations can unlock the potential of African people. Her motivation was a desire to give something back.  Pauline has a dramatic youth behind her. Born in Rwanda, she was forced to leave her home country during the 1994 genocide. She became a refugee and lived in different refugee camps in the Democratic Republic of the Congo (DRC). ‘As a refugee, I became a number and no one cared about my capabilities’, Pauline Koelbl recalls. After numerous stops in various African countries, Pauline emigrated to the USA as a documented refugee.

During her journey as a refugee, Pauline also experienced moments of humanity. For example, an acquaintance she met in one of the refugee camps paid for a plane ticket so that she could continue her journey from DRC Congo to Kenya and Senegal. Also, in the refugee camp, a stranger working for an aid agency shares a sandwich with her. Memories that stay with her and awaken in Pauline Koelbl the desire to give something back to society: ‘You could say that my experience as a refugee prepared me very well for my professional career - for both the good and less good aspects as they instilled in me compassion, purpose and resilience.’

Africa is a continent of opportunities

Just a short time after Pauline Koelbl arrived in the USA, her professional career took off. She completed her bachelor's degree at the W.A. Franke Honors College, University of Arizona, graduating summa cum laude. For her master's degree, she went to the Institute of Development Studies (IDS) in Brighton. Not once, but twice, she was awarded the prestigious Fulbright Scholarship, worked for UNESCO in Paris and later as a technical officer at the World health Organisation (WHO) in Geneva. Although very widely travelled, Pauline Koelbl never loses sight of the continent of her origin, Africa. Even before ShEquity, Koelbl was already promoting innovation and building networks, for example by co-founding the non-profit association Professional Women of African Heritage (PROWAH). Koelbl believes in the continent's potential: ‘I always think it's a shame when people say that Africa is poor. Because the continent is very rich and has a lot to offer: sheer size, incomparable natural resources and human capital composed of many young people who are hungry to make a difference and have great ideas.’ 

Pauline Koelbl spends a good part of her working time passing on this message. For her, the end of the line is far from being reached. ‘What I'm saying here is that Africa doesn't need aid, Africa needs smart investment.’ In 2022, the entire continent received USD 53.5 billion in development aid - a sum that alone could close the investment gap between men and women entrepreneurs in Africa. ‘If you put this money into economic development, you could transform the continent,’ says Pauline Koelbl.

Building trust requires perseverance

Pauline Koelbl has now made Zurich one of her homes. From Zurich, she travels across Africa exchanging with ecosystems enablers, sourcing deals and visiting ShEquity portfolio companies. Additionally, she spends much of her time fundraising and networking. ‘All entrepreneurs have to find a balance between their actual work and networking.’  In many case, networking is my work. Convincing investors to invest their capital in early-stage companies requires dialogue, perseverance and trust. ‘People do business with people. When money is involved, mutual trust is required.’ Pauline Koelbl travels the world to promote ShEquity and its work of investing in African women entrepreneurs. Most recently, she participated in different meetings that took place during the New York Climate week and the United Nations General Assembly in September. In November, she will be travelling to the Rejkyavik Global Forum, an invitation only event that brings together pioneering women leaders and their allies who are committed to building an inclusive world. Past and upcoming participants include Hillary Clinton, former New Zealand Prime Minister Jacinda Ardern and Melinda Gates. 

For Pauline Koelbl, the world is a village, home can be anywhere. ‘I've stopped thinking of home as a place. Wherever I'm with people who are important to me, I'm at home.’