There are numerous reasons to invest, however investors need to be aware that Africa is a place that tests their patience. The African markets can be unstable and time horizons might not always be a good idea. Even sophisticated businesses may need to revise their business plans, like Nestle did in 21 African countries in the last year. Many countries also have deficits. It will take brave and resourceful investors to fill these gaps and bring greater prosperity to Africans.

TLcom Capital’s $71 Million TIDE Africa Fund

TLcom Capital’s latest venture closed at $71 million. The fund’s predecessor closed in January of last year. Five million dollars were contributed by Sango Capital, Bio, CDC Group and TLcom. The first fund invested 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 has offices in Kenya and Nigeria. The portfolio of TLcom includes Twiga Foods, Andela, uLesson and Kobo360. Each company is worth between $500,000 and $10 million.

TLcom is a Nairobi-based VC firm with more than $200 million in under management. Omobola Johnson is one of the managing partner of the firm. He has helped establish more than a dozen technology companies in Africa, including Twiga Foods, and a logistical trucking business. The investment firm’s team is comprised of Omobola Johnson, how to get investors who was the former Nigerian minister of communication technology.

TIDE Africa is an equity fund that invests in growth-stage tech companies in SSA. It will invest between $500,000 to $10 million in companies that are at the beginning of their development and will focus on Series A and II rounds. While the fund will concentrate on Anglophone Africa, it plans to invest in Eastern and Southern African countries, too. TIDE for instance has invested in five high-growth digital companies in Kenya.

Omidyar Network’s $71 million TEEP Fund

The Omidyar Network, a US-based charitable investment firm, is aiming to invest $100-$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. The firm invests in India’s business and consumer internet, as well as financial inclusion. It also has investments in property rights, transparency in government as well as government transparency companies that have social impact.

The Omidyar Network’s TEEP Fund invests in projects which improve access to government information. Its goal is to identify non-profit organizations that make use of technology to build public information portals and tools for citizens. The network believes that open access to government information improves the public’s understanding of government procedures, which creates a more involved society that holds government officials accountable. Imaginable Futures will use the funds to invest in for-profit and non-profit organisations that focus on healthcare and education.

Raise

It is important to choose a firm that is based in Africa if you are looking to raise capital for your African startup. TLcom Capital, a fund manager based in London, is one of these companies. Angel investors have been attracted to its African investments and the team has raised money in Nigeria and Kenya. TLcom recently announced the launch of a new $71 million fund, which aims to invest in 12 startups before they reach revenue.

The potential of Africa venture capital is being recognized by the capital market. More private investor looking for projects to fund investors are realizing the potential of Africa for how to get investors growth and are not subject to the constraints of institutional investors. This means that raising money is much simpler than in the past. Raise allows businesses to close deals in half the time and is free of any institutional constraints. But there’s no one right method of raising funds for African investors looking for entrepreneurs.

Understanding how to get Investors investors view African investments is the first step. While YC hype is appealing to many investors but it’s crucial to take a look beyond the Silicon Valley giant and Agenda 2063 of the African Union. African startups are now looking for the YC signal to approach 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

GetEquity, a Nigeria-based investment platform, was founded in July 2021. It aims to democratize the process of funding startups in Africa. It aims to make financing African startups accessible to the common man and provide top capital raising tools for how to get investors any startup. The platform has already helped startups raise over $150,000 from a range of investors. In addition, it also provides a secondary market that allows investors to buy other investors’ tokens.

Unlike equity crowdfunding investing in early-stage companies can be very exclusive. It is typically only accessible to the most renowned individual angel investors, capital institutions and syndicates. It isn’t often accessible to friends and family. New startups are attempting to change this unwelcome arrangement by making it easier to access funding for startups in Africa. The platform is available on iOS and Android devices and is completely free to use.

The GetEquity’s cryptocurrency-based wallet is accessible to investors. This allows investors to invest in startups in Africa. With the help of crypto funds, investors can invest in African startups for as little as $10. Although this might seem like tiny relative to equity funding traditionally but it’s still an enormous amount of cash. Following the recent demise of Paystack by Spark Capital GetEquity has become an effective platform for investors from Africa who want to invest in Africa.

Bamboo

Bamboo’s first obstacle is convincing young Africans to invest on the platform. Up until now, investors in Africa were limited to a few limited options that included foreign direct investment (FDI) and crowdfunding and where to find investors in south africa legacy finance companies. In actuality, only three-quarters of the population had invested on any platform. The company has announced that it is expanding into other African countries, with plans to launch in Ghana by the end of April 2021. More than 100,000 Ghanaians are waiting to be added to the waitlist at the time of writing.

Africans do not have many options to save money. The value of the currency is decreasing against the dollar due to an increase of close to 16%. The investment in dollars can help 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 seen rapid growth in the past two years. Bamboo will be launched in Ghana in April 2021. It has already surpassed 50,000 users who are eager to gain access.

Investors can fund their wallets beginning at $20 after they have been registered. You can fund your account using credit cards, bank transfers, or credit cards. Then, they can trade ETFs and stocks, and receive market updates. Since Bamboo’s platform is bank-level secure, it can be used by anyone within Africa who has an official Nigerian Bank Verification Number. Professional investment advisors are also able to use Bamboo’s services.

Chaka

There are many reasons for why Nigeria is a hub for legitimate investment and business. The film and entertainment industry in Nigeria is among the biggest in Africa. The country’s expanding fintech sector has resulted in an increase in startup formations and VC activity. One of the most well-known backers of Chaka, Iyinoluwa Aboyeji, told TechCrunch that the country’s modern changes will eventually open the doors to a new class of investors. In addition to the investment of Aboyeji, Chaka has also secured seed-funds from the Microtraction fund which is headed by Y Combinator CEO Michael Seibel.

The degrading relationship between the US and China has accelerated Beijing’s interest in African investments. The growing anti-China sentiment and trade war have made it more attractive for investors to invest in African companies that are not part of the US. While Africa is home to a variety of emerging economies, most markets are not large enough for venture-sized enterprises. African entrepreneurs must be ready 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. Refunds for shares that were sold however could take up to three days. In both instances the cash payment for sold shares is settled locally.

Rise

Africa is receiving positive news due to the increasing number of investors who are willing to invest. The country’s economy is stable and its governance is sound, which draws international investors. This has led to a rise in living standards in Africa. Africa is still a risky investment area. Investors should exercise caution and do their studies. There are numerous opportunities to invest in Africa. However, the continent must improve its offerings to attract foreign capital. African governments must work together to create more business-friendly environment and improve the business investors in south africa environment in the next few years.

The United States is increasingly willing to help African economies with foreign direct investment. In 2013, U.S. governments helped develop a major financing for healthcare facility in Senegal. The U.S. government also supported investment in new technologies in Africa and also helped pharmacies in Nigeria and Kenya provide high-quality medication. These investments can create jobs and help build a long-term partnership between the U.S. and Africa.

While there are plenty of opportunities in the African market for stocks it is crucial to know the market and carry out due diligence to ensure you don’t make a loss. If you’re a smaller investor, it’s best to invest in exchange-traded funds (ETFs) which are funds that track a broad range of Sub-Saharan African companies. American depositary receipts (ADRs) which are issued by the United States, make it simple to trade African stocks on the U.S. stock exchange.