While there are many reasons to invest in Africa investors should be aware that the continent will test their patience. The African markets can be volatile and time horizons might not always work. Even the most sophisticated businesses might need to revise their business plans, as Nestle did last year in 21 African countries. Many countries also have deficits. These gaps must be filled by smart and resourceful investors who will bring more prosperity to Africa.

The $71 million TLcom Capital’s TIDE Africa Fund

TLcom Capital’s latest venture has closed at a reported $71 million. The fund’s predecessor was shut down in January of this year. Five million dollars were donated by Sango Capital, Angel Investors South Africa Bio, CDC Group and TLcom. The first fund was invested in tech companies in Kenya and Nigeria. TIDE Africa II will concentrate on East African fintech companies. The investment firm has offices in Kenya and Nigeria. The portfolio of TLcom is comprised of Twiga Foods and Andela as well as uLesson and Kobo360. The investment firm earns between the amount of $500,000 to $10 million for each company.

TLcom is a Nairobi-based VC firm with more than $200 million in under management. Omobola Johnson is one of the company’s Managing Partner. He has helped to establish more than a dozen tech businesses on the continent, such as Twiga Foods, and a trucking logistics business. Omobola Johnson (a former minister of technology for communication in Nigeria) is part of the team of the investment firm.

TIDE Africa is an equity investment fund which invests in growth stage tech companies in SSA. It will invest between $500,000 and $10 million in early stage companies with a particular focus on Series A and B rounds. Although the fund will be focusing on Anglophone Africa, it plans to invest in Eastern and Southern African countries, too. In Kenya, for example, TIDE has invested in five digital companies with high growth.

Omidyar Network’s $71 million TEEP Fund

The Omidyar Network is a US-based company that invests in philanthropy that aims to invest $100-$200 million in India over the next five years. Pierre Omidyar, co-founder of eBay, founded the fund and has invested $113 Million in 35 Indian companies. The fund invests in India’s business and consumer internet, as well as financial inclusion. It also invests in property rights, government transparency, transparency of the government, and companies that have a social impact.

The Omidyar Network’s TEEP Fund invests in projects that improve access to government information. Its objective is to identify nonprofits using technology to create public information portals and tools for citizens. The network believes that having access to government information enhances public knowledge about government processes and contributes to an active 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

It is important to choose a firm that is focused on Africa if are looking to raise money for your African startup. One such company is TLcom Capital, a fund management firm that is based in London. Its African investments have caught the attention of angel investors south africa (Read More On this page) investors, and the team has raised funds in Nigeria and Kenya. TLcom recently announced the launch of a brand new $71 million fund aiming to invest in 12 startups before they achieve revenue.

The capital market is becoming increasingly aware of the benefits of Africa venture capital. More private investor looking for projects to fund investors are recognizing the potential of Africa to grow and don’t face the restrictions of institutional investors. This means that raising money is much easier than it was in the past. Raise allows businesses to conclude deals in half the time and is completely without institutional limitations. There is no single method to raise funds for African investors.

Understanding how to get funding for a business investors view African investments is the first step. While YC hype is appealing to investors of all kinds but it’s crucial to consider more than the Silicon Valley giant and Agenda 2063 of the African Union. African companies are now searching for the YC signal to make contact with US investors. Kyane Kassiri is a Tunisian venture capitalist, has recently spoke about the importance of the YC signal when it comes to raising funds for African investors.

GetEquity

Founded in July 2021, GetEquity is an investment platform based in Nigeria that aims at democratizing startup funding in Africa. It aims to make funding African startups easier for everyone by providing capital-raising tools and world-class capital for all startups. It has already assisted numerous startups get more than $150,000 in funding from diverse investors. It also offers secondary markets for investors to purchase tokens from other investors.

Contrary to equity crowdfunding investing in early-stage businesses is a highly exclusive venture that is typically available to leading individual angel investors and capital institutions as well as syndicates. It isn’t often accessible to family members and friends. However, new startups are trying to disrupt this privileged arrangement by democratizing access to startup funding in Africa. It is accessible for both Android and iOS devices. It is free to use.

With the introduction of its wallet that is based on blockchain technology, GetEquity is making startup investing in Africa feasible for all investors. With the help of crypto-based funds, investors can invest in African startups for as little as $10. Although this may seem tiny compared to traditional equity funding however, it’s a significant amount of money. Following the recent demise of Paystack by Spark Capital GetEquity has become an effective platform for African investors who want to invest in Africa.

Bamboo

Bamboo’s first challenge is convincing young Africans to invest in the platform. Investors in Africa had few options before now including crowdfunding, foreign direct investments (FDI) and old finance companies. A mere third of the African population has made a purchase on any platform. The company has announced that it is expanding into other African countries, and plans to launch in Ghana by the end of April 2021. More than 50.000 Ghanaians are waiting to be added to the waitlist as of this writing.

Africans have few options for saving money. With inflation hovering around 16 percent and the currency depreciating against the dollar. It is possible to invest dollars to help to protect yourself against inflation and a falling dollar. One platform that allows Africans to invest in U.S. stocks is Bamboo, angel investors South Africa which has experienced rapid growth in the last two years. Bamboo will be launched in Ghana in April 2021. It has already surpassed 500 thousand users who are waiting to be granted access.

Once they have registered, investors can fund their wallets with as little as $20. You can fund your account using credit cards, bank transfers or credit cards. Then, they can trade ETFs and stocks and receive market updates. Bamboo’s platform is bank-level secure and therefore anyone in Africa is able to use it if they have an authentic Nigerian Bank Verification number. Bamboo’s services can also be used by professional investment advisers.

Chaka

There are a few reasons for why Nigeria is a hotspot for legitimate investment and business. The film and entertainment industry in Nigeria is among the biggest in Africa. The growing fintech ecosystem has resulted in an increase in startup formations and VC activity. TechCrunch spoke to Iyinoluwa Abodeji, one of Chaka’s most prominent investors. She stated that the trend towards progress in the country will eventually open the doors to new investors. Chaka also received seed-funds from Microtraction which is managed by Michael Seibel, CEO of Y Combinator.

The deteriorating relationship between China and the US has increased Beijing’s interest in African investments. The trade war, business funding along with growing anti-China sentiment make it more attractive for investors to look outside of the US to invest in African companies. The African continent is a large, developing economies, but the majority of markets are small to support venture-sized companies. African entrepreneurs must be ready to adopt an expansion-minded mindset and craft a coherent expansion story.

The Nigerian Stock Exchange is overseen by the Central Securities Clearing System, which makes it a secure and secure place to invest in African stocks. Chaka is free to join and offers the possibility of earning a 0.5 percent commission on every trade. Withdrawals of cash available can take up 12 hours. The withdrawal of shares that have been sold, on the other hand can take up to three days. In both instances the cash payment for sold shares is settled locally.

Rise

The rising number of investors eager to invest in Africa is good news for Africa. The economy is stable and its governance is sound, which draws international investors. The growth has boosted the standard of living in Africa. Africa is still a risky investment location. Investors must be cautious and do their study. There are many opportunities to invest in Africa. However the continent needs to improve its infrastructure to attract foreign capital. African governments must collaborate to create a more conducive business environment and enhance the business climate in the next few years.

The United States is increasingly willing to support African economies by facilitating foreign direct investment. U.S. governments assisted Senegal in the development of a major healthcare financing facility. The U.S. government also helped get investment in the latest technologies in Africa and assisted pharmacies in Kenya and Nigeria provide high-quality medication. These investments can generate jobs and build an ongoing relationship between the U.S. and Africa.

There are many opportunities in the African stock exchange. However, it’s essential to know the market and conduct your due diligence to avoid losing money. If you’re a smaller investor, it’s recommended to invest in exchange-traded funds (ETFs), which are funds that track a diverse basket of Sub-Saharan African companies. American depositary receipts (ADRs), which are issued by the United States, make it easy to trade African stocks on the U.S. stock exchange.