There are numerous reasons to invest, but investors should be aware that Africa can test their patience. The African markets are unstable and time horizons don’t always work. Even the most sophisticated businesses might need to reevaluate their business plans, just as Nestle did last year in 21 African countries. Many countries also face deficits. These gaps must be filled by resourceful and bold investors who can bring greater prosperity to Africa.

The $71 million TLcom Capital’s TIDE Africa Fund

TLcom Capital’s latest venture has been closed at an estimated $71 million. The predecessor fund was closed in January of last year. Five million dollars were donated 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 concentrate on fintech companies located in East Africa. The investment firm also has offices in Nigeria and Kenya. The portfolio of TLcom comprises Twiga Foods and Andela as along with 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. 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 investment 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 that are focusing 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 $71M TEEP Fund

The Omidyar Network is a US-based foundation that invests in philanthropy and aims to invest $100-$200 million into India in 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 firm invests in entrepreneurship, consumer Internet financial inclusion, government transparency property rights, as well as firms with social impact.

The Omidyar Network’s TEEP Fund makes investments that are designed to improve access and accessibility to government information. Its objective is to identify nonprofits that use technology to build public information portals and tools for citizens. The network believes that open access to government information enhances the public’s awareness of government processes, which creates a more involved society that holds officials accountable. Imaginable Futures will invest the funds in non-profit and for-profit organizations focusing on education and health.

Raise

You should choose a company with a focus on Africa if want to raise funds for your African startup. One of these companies is TLcom Capital, a fund management firm based in London. Its African investments have caught the attention of angel investors south africa investors, and the company has raised funds in Nigeria and Kenya. TLcom has just announced the launch of a new fund totalling $71 million to invest in 12 startups prior to reaching profitability.

The capital market is becoming more aware of the potential of Africa venture capital. More private investors are realizing the potential of Africa for growth and are not subject to the constraints of institutional investors. This means that raising funds is much simpler than in the past. Raise helps businesses how to get investors in south africa close deals in a fraction of the time and is also free of institutional constraints. There’s no perfect method of raising funds for African investors.

The first step is to comprehend what investors think about African investments. While YC hype appeals to a lot of investors however, it is important to think beyond the Silicon Valley giant and Agenda 2063 of the African Union. African startups are now looking for the YC signal to reach out to US investors looking for projects to fund. A Tunisian venture capitalist Kyane Kassiri has recently spoken out about the importance of the YC sign when raising funds for African investors.

GetEquity

In July 2021, GetEquity is an investment platform based in Nigeria that aims at democratizing startup funding in Africa. It wants to make financing African startups affordable to the average person by bringing top capital raising tools for any startup. The platform has already helped startups raise more than $150,000 from a diverse range of investors looking For entrepreneurs. Additionally, it offers a secondary market to investors looking for projects to fund to purchase other investors’ tokens.

Unlike equity crowdfunding investing in companies in the early stages is a very exclusive business that is usually only available to top capital institutions and investors willing to invest in africa angel investors as well as syndicates. It isn’t often accessible to friends and family. However, new startups are attempting to disrupt this privileged arrangement 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 blockchain-based wallet, GetEquity is making startup investing in Africa an option for common investors. Investors can invest as low as $10 in African startups using crypto funds. Although this is a small amount, it’s still substantial in comparison to traditional equity financing. In the wake of the recent demise of Paystack by Spark Capital, GetEquity has become a formidable platform for investors willing to invest in Africa.

Bamboo

The first obstacle for Bamboo is convincing young Africans to invest on the platform. Until now, investors in Africa were limited to a limited number of options including foreign direct investment (FDI) or crowdfunding and legacy finance companies. Only about a third have been able to invest on any platform. But now, the company says it’s expanding into other parts of Africa with 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 don’t have many options for saving money. The value of the currency is decreasing against the dollar due to inflation that is close to 16%. In investing in dollars, you can protect against the rising cost of inflation as well as a falling currency. One platform that allows Africans to invest in U.S. stocks is Bamboo, which has experienced rapid growth over the last two years. Bamboo is set to launch in Ghana in April 2021, and has more than 500 users who are waiting to get access.

Once registered, investors are able to fund their wallets with just $20. You can add funds to your wallet using credit cards, bank transfer, or credit cards. Afterwards, they can trade stocks and ETFs and receive regular market updates. As Bamboo’s platform is bank-level secure it is accessible by anyone within Africa that has an official Nigerian Bank Verification Number. Professional investment advisors can use Bamboo’s services.

Chaka

Nigeria is a major hub for legitimate business and investment. Nigeria’s film and entertainment industry is among the biggest in Africa. The country’s growing fintech sector has resulted in a boom in startup formations and VC activity. TechCrunch interviewed Iyinoluwa Abodeji, one Chaka’s most prominent supporters. She stated that the trend towards progress in the country could eventually open doors to a new class investors. Chaka also received seed-funds from Microtraction, which is managed by Michael Seibel, CEO of Y Combinator.

The weakening relationship between the US and China has accelerated Beijing’s interest in African investments. The growing anti-China sentiment and trade war have increased the appeal of investors to invest in African businesses outside of the US. Although the continent of Africa has a number of developing economies, the majority of these aren’t big enough for investors Looking for Entrepreneurs venture-sized companies. The owners of businesses in Africa must be ready to take on an expansion mindset and lock in a consistent expansion story.

The Nigerian Stock Exchange is overseen by the Central Securities Clearing System, which makes it a safe and secure platform to invest in African stocks. Chaka is free to join and gives the benefit of a 0.5 percent commission on every trade. Cash withdrawals that are available take up to 12 hours. On the other hand, withdrawals for sold shares can take up to three working days. Both cases are handled locally.

Rise

Africa is receiving positive news due to the increasing number of investors willing to invest. The country’s economy is stable and its governance is sound, which attracts international investors. This growth has raised the standard of living in Africa. Africa is still a risky investment location. Investors should be cautious and conduct their own research. There are plenty of opportunities to invest in Africa. However Africa must make improvements to attract foreign capital. African governments must work together to create more business-friendly environment and improve the business investors in south africa climate in the coming years.

The United States is increasingly willing to support African economies by facilitating foreign direct investment. In 2013, U.S. governments helped advance a major healthcare financing facility in Senegal. The U.S. government also helped secure investment in cutting-edge technologies in Africa and also helped pharmacies in Kenya and Nigeria stock high-quality medicine. This kind of investment can create jobs and help build a long-term partnership between the U.S. and Africa.

While there are several opportunities to invest in the African stock market it is important to know the market and carry out due diligence to ensure that you don’t lose money. If you’re a modest investor, it’s a smart idea to invest in an exchange-traded fund (ETFs) which track the performance of a variety of Sub-Saharan African businesses. For U.S. investors, American depositary receipts (ADRs) are a simple method to trade African stocks on the U.S. stock market.