There are many reasons to invest, but investors need to be aware that Africa is a place that tests their patience. The African markets aren’t always stable and time horizons may not always work. Even the most sophisticated companies might need to revise their business plans, like Nestle did in 21 African countries last year. Many countries also have deficits. These gaps must be filled by smart and resourceful investors who can bring more prosperity to Africa.

TLcom Capital’s $71 Million TIDE Africa Fund

The latest venture by TLcom Capital was closed at $71 million. The predecessor fund was closed in January of last year. Five million dollars were contributed by Sango Capital, Bio, CDC Group and TLcom. The first fund was invested in tech companies in Kenya and Nigeria. TIDE Africa II will concentrate on fintech companies located in East Africa. The investment firm also has offices in Nigeria and Kenya. TLcom’s portfolio comprises Twiga Foods and Andela as in addition to uLesson and Kobo360. The investment company makes between $500,000 and $10 million in each company.

TLcom is an Nairobi-based VC company, has more than $200 million under management. Omobola Johnson is the managing partner of the company. He has helped establish more than a dozen tech businesses on the continent, such as Twiga Foods, and a logistics company for trucking. The investment firm’s team is comprised of Omobola Johnson, how to get investors who was the former Nigerian minister of technology and communication.

TIDE Africa is an equity investment fund that invests in growth stage tech companies in SSA. It will invest between $500,000 to $10 million in early-stage companies with a particular focus on Series A and II 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 digital companies with high growth.

Omidyar Network’s $71 million TEEP Fund

The Omidyar Network, a US-based company that invests in philanthropy, hopes to invest $100-$200 million in India over five years. The fund was founded by eBay co-founder Pierre Omidyar and has invested $113 million in 35 Indian businesses since 2010. In India the fund invests in entrepreneurship, consumer internet 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. Its mission is to identify nonprofits that utilize technology to create 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 creates a more engaged society that is accountable to government officials. 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 choose a company that is focused on Africa if are looking to raise capital for your African startup. One of these companies is TLcom Capital, a fund management firm with its headquarters in London. Angel investors have been attracted to its African investments and the team has also 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 more aware of the appeal of Africa venture capital. More private investor looking for projects to fund investors are realizing the potential of Africa for growth and are not subject to the restrictions of institutional investors. This means that raising money is much more simple than in the past. Raise enables businesses to close deals in half of the time and is free of any institutional constraints. However, there isn’t a single right method to raise money for African investors.

The first step is to know how to get funding for a business investors think about African investments. While many investors are drawn to YC hype, it’s vital to be aware of the broader implications of this Silicon Valley giant and the Agenda 2063 of the African Union. African companies are now searching for the YC signal to reach out to US investors. Kyane Kassiri is a Tunisian venture capitalist, recently spoke about the importance of the YC signal when it comes to raising funds for investors looking for projects To fund in namibia African investors.

GetEquity

Established in July 2021, business investors in south africa GetEquity is a Nigeria-based investment platform aimed at democratizing startup funding in Africa. It aims to make funding African startups accessible to the common man and provide top capital raising tools for investors looking for projects to fund in Namibia any startup. It has already helped numerous startups get more than $150,000 in funding from investors from all over the world. In addition, it also provides a secondary market for investors to purchase other investors’ tokens.

Unlike equity crowdfunding investing in early-stage companies is a highly exclusive venture which is generally only accessible to leading individual angel investors and capital institutions and syndicates. It’s not often available to family members and friends. New companies are trying to change this arrangement by making it easier to access capital for startups in Africa. The platform is accessible on iOS and Android devices and is free to use.

The GetEquity blockchain-based wallet is now available to investors. This allows investors to invest in the development of startups in Africa. With the help of crypto funds, investors can invest in African startups for as little as $10. Although it’s a small amount, it’s still significant amount of money when compared with traditional equity financing. Following the recent demise of Paystack by Spark Capital GetEquity has become an ideal platform for investors looking for projects to fund in Namibia from Africa who want to invest in Africa.

Bamboo

Bamboo’s first hurdle is convincing young Africans to invest in the platform. Investors in Africa had only a few options prior to the present such as crowdfunding, foreign direct investment (FDI), and legacy finance companies. In fact, only about a third of the population had invested in any platform. The company has announced that it is expanding into other countries in Africa, 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 as of this writing.

Africans don’t have many options for saving money. The value of the currency is declining against the dollar due to an increase of nearly 16 percent. In investing in dollars, you can hedge against inflation and a falling currency. One platform that allows Africans to invest in U.S. stocks is Bamboo which has seen rapid growth in the last two years. Bamboo will begin operations in Ghana in April 2021. It already has over 100,000 users who are waiting to be granted access.

Investors can fund their accounts starting at just $20 once they’re registered. You can fund your account using credit cards, bank transfers, or payment cards. After that, they are able to trade ETFs and stocks and receive regular market updates. Bamboo’s platform is bank-level secured, so anyone in Africa can use it if they have an authentic Nigerian Bank Verification number. Bamboo’s services can also be utilized by professional investment advisers.

Chaka

Nigeria is a hub for legitimate business funding and investment. The Nigerian film and entertainment industry is one of the largest in Africa. The growing fintech ecosystem has led to an increase in the number of startup companies and VC activity. One of the most well-known supporters of Chaka, Iyinoluwa Aboyeji, said to TechCrunch that the country’s progressive trends will ultimately open doors to a brand new group of investors. In addition to the Aboyeji investment, Chaka has also secured seed-funds from the Microtraction fund which is managed by Y Combinator CEO Michael Seibel.

The deteriorating US-China relationship has accelerated Beijing’s interest in African investments. The trade war, along with rising anti-China sentiment, have made it more appealing for investors to look outside of the US to invest in African companies. The African continent is home to large, emerging economies however, the majority of markets are too small to sustain venture-sized businesses. The entrepreneurs of companies in Africa must be ready to take on an expansion mindset and lock in a consistent 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 has the benefit of a 0.5 percent commission on each trade. Withdrawals of available cash can take up to 12 hours. In the case of withdrawals of shares sold on the other hand, can take up to three days. In both instances, the cash for sold shares is settled locally.

Rise

Africa is experiencing positive news due to the rise in investors who are willing to invest. Its economy is stable and its governance is sound, which attracts international investors. This has led to a rise in living standards in Africa. However, Africa is still a dangerous investment destination and investors should be cautious and exercise due diligence. There are many opportunities for investment in Africa however, the continent must improve its infrastructure to draw 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 increasingly willing to aid African economies through direct foreign investment. In 2013, U.S. governments helped in the development of a major healthcare financing facility in Senegal. The U.S. government also helped secure investment in new technologies in Africa and also helped pharmacies in Kenya and Nigeria provide high-quality medication. This type of investment could create jobs and help build an ongoing relationship between the U.S. and Africa.

While there are numerous opportunities in the African stock market It is essential to know the market and conduct proper due diligence to ensure that you do not lose money. If you’re a smaller investor, you should invest in exchange-traded funds (ETFs) which are funds that track a wide basket of Sub-Saharan African companies. For U.S. investors, American depositary receipts (ADRs) are a simple option to trade African stocks in the U.S. stock market.