There are numerous reasons to invest, but investors should be aware that Africa can test their patience. The African markets can be unstable and time horizons may not always be effective. Even highly sophisticated companies might have to adjust their business plans as Nestle did in 21 African countries last year. Many countries also have deficits. These gaps must be filled by smart and savvy investors who can bring greater prosperity to Africa.
The $71 million of TLcom Capital’s TIDE Africa Fund
TLcom Capital’s latest venture has closed at a reported $71 million. The fund’s predecessor closed in January of this year, and TLcom, Bio, CDC Group, and Sango Capital contributed five million dollars. The fund’s first investment was in twelve tech companies in Kenya, Nigeria, and South Africa. 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 is comprised of Twiga Foods and Andela as well as uLesson and where to find investors in south africa Kobo360. The investment firm makes between the amount of $500,000 to $10 million for each company.
TLcom, a Nairobi-based VC company has more than $200 million under management. The company’s managing partner, Omobola Johnson, has been instrumental in launching more than dozen tech companies across the continent, including Twiga Foods and a trucking logistics company. The investment firm’s team is comprised of Omobola Johnson, a former Nigerian minister of communication technology.
TIDE Africa is an equity fund that invests in growing-stage tech companies in SSA. It will invest between $500,000 and $10 million in early stage companies, with an emphasis 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, investors looking for projects to fund in namibia a US-based charitable investment firm, is aiming to invest between $100 and $200 million in India over five years. Pierre Omidyar, co-founder of eBay established the fund and has invested $113 million in 35 Indian companies. In India, the firm invests in consumer internet, entrepreneurship, financial inclusion, government transparency property rights, and firms with social impact.
The Omidyar Network’s TEEP Fund invests in projects that increase access to government information. It aims to identify non-profits that make use of technology to develop public information portals and tools for citizens. The network believes that having access to government data increases the knowledge of citizens about government processes, and can lead to an engaged society that ensures that government officials are accountable. Imaginable Futures will invest the funds in non-profit and for-profit organisations that focus on education and health.
Raise
You should select a company 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 recently announced the launch of a brand new $71 million fund, which aims to invest in 12 startups before they reach revenue.
The capital market is becoming aware of the potential of Africa venture capital. Private investors are becoming increasingly aware of the potential for Africa’s growth and don’t need to be limited by institutional investors. This means that raising money is much simpler than it was in the past. Raise allows businesses to close deals in half the time and is completely free of institutional restrictions. There’s no single best method to raise money for African investors.
Understanding how to get investors investors Looking for projects to fund in namibia perceive African investments is the first step. Although many investors are attracted to YC hype, it’s crucial 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 they approach US investors. Kyane Kassiri is a Tunisian venture capitalist, recently spoke on the importance of the YC signal when it comes to raising funds for African investors.
GetEquity
GetEquity, an investment platform that is based in Nigeria was established in July 2021. It aims at democratizing the funding of startups in Africa. It is aiming to make funding African startups easier for everyone by offering capital raising tools and world-class capital for all startups. It has already helped a number of 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.
Unlike equity crowdfunding investing in early-stage companies is a highly exclusive venture that is typically only available to the top individual angel investors and capital institutions and syndicates. It is not generally accessible to family members and friends. However, new companies are making an effort to change this privilege by increasing access to startup funds in Africa. The platform is accessible on iOS and Android devices and is completely free to use.
With the introduction of its wallet based on blockchain, GetEquity is making startup investing in Africa feasible for all investors. Investors can invest as little as $10 in African startups with the help of crypto funds. Although it’s a small amount, it’s still significant amount of money when compared with traditional equity financing. In the wake of the recent demise of Paystack by Spark Capital, GetEquity has transformed into a robust ecosystem for investors looking to invest in Africa.
Bamboo
The first challenge for Bamboo is convincing young Africans to invest on the platform. In the past investors in Africa were restricted to a handful of options: foreign direct investment (FDI) or crowdfunding and legacy finance companies. Only about a third of investors have invested in any platform. But now 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 on the waitlist as of this writing.
Africans have limited alternatives for saving money. With the rate of inflation reaching 16% and the currency depreciating against the dollar. It is beneficial to invest in dollars to hedge against the effects of inflation and a declining currency. One platform that allows Africans to invest in U.S. stocks is Bamboo, which has experienced rapid growth in the past two years. Bamboo will be launched in Ghana in April 2021. Bamboo has already attracted more than 100,000 users who are waiting to get access.
Once registered, investors can fund their wallets with just $20. Funding can be made through credit cards, bank transfers, and payment cards. After that, they can trade ETFs and stocks and receive regular market updates. Bamboo’s platform is secured at the bank level which means that anyone in Africa can use it as long as they have a valid Nigerian Bank Verification number. Bamboo’s services can also be utilized by professional investment advisers.
Chaka
There are a number of reasons for why Nigeria is a hotspot for legitimate investment and business funding. The Nigerian film and entertainment industry is one of the largest in Africa. The growing fintech ecosystem has resulted in a boom in startup formations and VC activity. One of the most prominent supporters of Chaka, Iyinoluwa Aboyeji, told TechCrunch that the country’s progressive trends will ultimately 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 war, and increasing anti-China sentiments has made it more attractive for investors to look beyond the US to invest in African companies. While Africa has many developing economies, the majority of markets are too small for venture-sized firms. African entrepreneurs should be prepared to adopt an expansion-minded mindset and create a coherent expansion story.
The Central Securities Clearing System oversees the Nigerian Stock Exchange, making it a secure and safe platform to invest in African stocks. Chaka is free to join, and you will receive an 0.5 percent commission for each trade. Withdrawals of cash on hand can take up to 12 hours. On the other hand, withdrawals of sold shares can take up to three working days. In both cases, the cash for sold shares is settled locally.
Rise
Africa is experiencing positive news due to the rise in investors willing to invest. The country’s economy is stable and its governance is sound, which is why it is a popular destination for international investors. This has led to a rise in living standards in Africa. Africa is still a risky investment location. Investors should be cautious and conduct their own research. There are many opportunities to invest in Africa, but the continent needs to improve its infrastructure to attract foreign capital. In the coming years, African governments should work to create more business-friendly environments and improve its business funding climate.
The United States is more willing to invest in the economies of Africa via foreign direct investment. U.S. governments assisted Senegal in the development of a major healthcare financing facility. The U.S. government also helped secure investment in new technologies in Africa and also helped pharmacies in Kenya and Nigeria stock high-quality medicine. This type of investment could create jobs and create long-term partnerships between the U.S. and Africa.
There are many opportunities available in the African market for stocks, it is vital to understand the market and carry out due diligence to ensure you don’t lose money. If you’re a small investor it is a good option to invest in an exchange-traded fund (ETFs) that track an array of Sub-Saharan African businesses. American depositary receipts (ADRs) which are issued by the United States, allow investors to trade African stocks on the U.S. stock exchange.