There are many reasons to invest, but investors need to be aware that Africa is a place that tests their patience. The African markets are unstable and time horizons do not always work. Even the most sophisticated businesses might need to revise their business plans, just as Nestle did last year in 21 African countries. Many countries also have deficits. It will take strong and resourceful investors to plug these gaps and bring greater prosperity to Africans.
TLcom Capital’s $71 million TIDE Africa Fund
The latest venture from TLcom Capital ended at $71 million. The fund’s predecessor closed in January of this year. Five million dollars were donated by Sango Capital, Bio, CDC Group and TLcom. The first fund made investments in tech companies in Kenya and Nigeria. TIDE Africa II will focus on fintech companies located in East Africa. The investment firm also has offices in Nigeria and Kenya. The portfolio of TLcom includes Twiga Foods, Andela, uLesson and Kobo360. Each company is worth anywhere from $500,000 and $10 million.
TLcom is an Nairobi-based VC company with more than $200 million under management. The firm’s Managing Partner, Omobola Johnson, has helped establish more than a dozen tech companies across the continent including Twiga Foods and a trucking logistics company. Omobola Johnson (a former minister of communication technology in Nigeria) is part of the investment firm’s team.
TIDE Africa is an equity fund that invests in growth-stage tech companies in SSA. It will invest between $500,000 and $10 million in early stage companies and will focus on Series A and B rounds. The fund will be focused on Anglophone Africa but it plans to invest in Eastern and Southern African countries. In Kenya, for example, TIDE has invested in five companies with high growth in digital technology.
Omidyar Network’s $71 million TEEP Fund
The Omidyar Network, a US-based company that invests in philanthropy, hopes to invest between $100 and $200 million in India over the next five years. Pierre Omidyar, co-founder of eBay created the fund and has invested $113 Million in 35 Indian companies. In India the fund invests in entrepreneurship, consumer Internet, financial inclusion, transparency in government, property rights, and companies that have a social impact.
The Omidyar Network’s TEEP Fund invests in projects which improve access to government information. It’s goal is to find non-profits using technology to build public information portals as well as tools for citizens. The network believes that having open access to government information improves the public’s awareness of government processes, which in turn will result in a more engaged society that holds government officials accountable. Imaginable Futures will use the funds to invest in for-profit and non-profit organizations that are focused on healthcare and education.
Raise
You should pick a business that is focused on Africa if are looking to raise funds for your African startup. TLcom Capital, a fund manager located in London is one such company. Its African investments have attracted the attention of angel investors, and the team has raised funds in Nigeria and Kenya. TLcom has announced that it will launch of a new fund of $71 million that will invest in 12 startups prior to reaching profitability.
The potential of Africa venture capital is increasingly being acknowledged by the capital market. More private investors are realizing the potential of Africa for growth and are not subject to the same restrictions as institutional investors. This means that raising funds has never been more simple. Raise allows businesses to close deals in half the time and is free of the constraints of institutions. But there’s no one right method of raising funds for African investors.
The first step is to understand the mindset of investors regarding African investments. While many investors are drawn to YC hype, it’s essential to be aware of the broader implications of this Silicon Valley giant and the Agenda 2063 of the African Union. This is why African startups are looking for the YC signal before approaching US investors. A Tunisian venture capitalist Kyane Kassiri has recently spoken out about the importance of the YC signal when seeking funds for African investors.
GetEquity
It was founded in July 2021. GetEquity is an investment platform that is based in Nigeria and aimed at democratizing startup funding in Africa. It hopes to make the process of funding African startups accessible to everyone and provide the best capital raising tools available to any startup. It has already helped numerous startups to raise more than $150,000 from investors from all over the world. It also offers secondary markets for investors to buy tokens from other investors.
In contrast to equity crowdfunding investing in early-stage companies is a highly exclusive activity which is generally only accessible to top capital institutions and angel investors as well as syndicates. It is not accessible to family and friends. However, new startups are trying to challenge this exclusive arrangement by opening up access to startup capital in Africa. It is available for Android and iOS devices. It is free to use.
The GetEquity’s cryptocurrency-based wallet is open to investors. This makes it possible to invest in the development of startups in Africa. Investors can invest as little as $10 in African startups by using crypto funds. While this may seem like a small amount as compared to traditional equity financing however, 5Mfunding.Com it’s an enormous amount of cash. In the wake of the recent demise of Paystack by Spark Capital, GetEquity has developed into a thriving ecosystem for investors looking for entrepreneurs investors willing to invest in Africa.
Bamboo
Bamboo’s first obstacle is convincing young Africans to invest on the platform. Investors in Africa had limited options before now such as crowdfunding, foreign direct investments (FDI) as well as legacy finance companies. Only about a third have made a purchase on any platform. However the company has announced that it is expanding into other regions of Africa and plans to launch in Ghana in April 2021. More than 50.000 Ghanaians are waiting to be added to the waitlist as of this writing.
Africans have few alternatives for saving money. The currency is losing value against the dollar due inflation of close to 16 percent. A dollar investment can help safeguard against inflation as well as the decline of the dollar. One platform that allows Africans to invest in U.S. stocks is Bamboo, which has experienced rapid growth in the last two years. Bamboo plans to begin operations in Ghana in April 2021, and already has more than 500 users who are waiting to get access.
Once registered, investors can fund their wallets with just $20. The funds can be accessed via credit cards, bank transfers, and payment cards. They can then trade ETFs, stocks, and stocks and receive market updates. Since Bamboo’s platform is secure at the bank level it is accessible by anyone in Africa who has an acceptable Nigerian Bank Verification Number. Professional investment advisors are also able to benefit from Bamboo’s services.
Chaka
There are several reasons why Nigeria is a hub for legitimate business and investment. Its movie and entertainment industry is among the continent’s biggest, and the country’s growing fintech ecosystem has resulted in an explosion in startup formation and VC activity. One of the most prominent supporters of Chaka, Iyinoluwa Aboyeji, told TechCrunch that the country’s modern trends will eventually open doors to a new category of investors. Chaka also received seed-funds from Microtraction which is managed by Michael Seibel, CEO of Y Combinator.
Beijing has been more interested in African investments due to the deteriorating relationship between the US and China. The trade conflict, as well as growing anti-China sentiment make it more attractive for investors to consider investing outside of the US to invest in African companies. While Africa is home to a variety of emerging economies, the majority of them are too small for venture-sized firms. African entrepreneurs must be prepared to adopt an expansion perspective and build a coherent expansion story.
The Nigerian Stock Exchange is overseen by the Central Securities Clearing System, which makes it a secure and secure platform to invest in African stocks. Chaka is free to join, and you’ll receive a 0.5 percent commission for each trade. Cash withdrawals that are available take up to 12 hours. The withdrawal of shares that have been sold however, can take up to three days. Both are handled locally.
Rise
Africa is receiving positive news due to the increasing number of investors willing to invest. The economy of the country is stable, and its governance is sound, which draws foreign investors. The growth has boosted the standard of living in Africa. However, Africa is still a very risky investment and theplayermall.co.kr investors must take care and be careful. There are many opportunities to invest in Africa. However the continent needs to make improvements to attract foreign capital. African governments must work together to create more business-friendly environment and improve the business climate in the coming years.
The United States is more willing to invest in the economies of Africa through foreign direct investment. In 2013, U.S. governments helped advance a major healthcare financing facility in Senegal. The U.S. government also supported the development of new technologies in Africa and assisted pharmacies in Nigeria and Kenya have access to high-quality medicines. This investment could create jobs and build long-term relationships between the U.S.A and Africa.
There are many opportunities on the African stock exchange. However, it’s crucial to be aware of the market and perform your due diligence to avoid losing money. If you’re a modest investor, it’s recommended to invest in exchange-traded funds (ETFs), which are funds that track an extensive range of Sub-Saharan African companies. American depositary receipts (ADRs) that are issued by the United States, make it simple to trade African stocks on the U.S. stock exchange.
