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

The $71 million investment by TLcom Capital. TIDE Africa Fund

The latest venture of TLcom Capital has been closed at an estimated $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 first fund invested in tech companies in Kenya and Nigeria. TIDE Africa II will focus on East African fintech firms. The investment firm also has offices in Nigeria and Kenya. TLcom’s portfolio includes Twiga Foods, Andela, uLesson and Kobo360. Each company is worth between $500,000 to $10 million.

TLcom, an Nairobi-based VC company, has more than $200 million under management. The company’s managing partner, Omobola Johnson, has helped to launch more than a dozen tech companies across the continent which include 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 fund that invests into growth-stage tech companies in SSA. It will invest between $500,000 and $10 million in early-stage companies and will 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. TIDE for instance, has invested in five high-growth digital companies in Kenya.

Omidyar Network’s $71M TEEP Fund

The Omidyar Network, a US-based charitable investment firm, is aiming to invest $100-$200 million in India over the course of five years. The fund was created by eBay co-founder Pierre Omidyar and business funding has invested $113 million in 35 Indian companies since 2010. In India the fund invests in consumer internet, entrepreneurship, financial inclusion, transparency in government property rights, and businesses that have social impact.

The Omidyar Network’s TEEP Fund invests in projects which improve access to government information. It’s goal is to find non-profit organizations that utilize technology to build public information portals and tools for citizens. The group believes that access to government information improves public knowledge about government processes and creates an active society that is accountable to government officials. Imaginable Futures will use the funds to invest in non-profit and for-profit organisations that focus on healthcare and education.

Raise

If you’re looking to raise money for your African start-up, you need to look for a business with an African-centric focus. TLcom Capital, a fund manager located in London, is one of these companies. Its African investments have attracted the attention of angel investors, Investors looking for projects to fund in namibia and the company has raised funds in Nigeria and Kenya. TLcom recently announced the launch of a new fund worth $71 million, which will invest in 12 startups before they achieve profitability.

The attraction of Africa venture capital is increasingly being recognized by the capital markets. Private investors are becoming increasingly aware of the potential of Africa’s development and aren’t restricted by institutional investors. This means that raising funds is much more simple than in the past. Raise enables businesses to close deals in half the time and is without institutional limitations. However, there isn’t a single right way to raise funds for African investors.

Understanding how to get investors investors perceive African investments is the first step. While many investors are drawn to YC hype, it’s important to consider the bigger picture of this Silicon Valley giant and the Agenda 2063 of the African Union. African startups are now looking for the YC signal to make contact with US investors. Kyane Kassiri is an Tunisian venture capitalist, has recently spoke on the importance of the YC signal when it comes to raising money for African investors.

GetEquity

Established in July 2021, GetEquity is a Nigeria-based investment platform aimed at democratizing startup funding in Africa. It aims to make funding African startups easier for everyone by offering capital raising tools and world-class capital for all startups. The platform has already helped startups raise over $150,000 from a diverse range of investors. It also offers secondary markets for investors to buy tokens from other investors looking for Projects to fund in namibia.

Like equity crowdfunding, investing in early-stage companies is an extremely exclusive business. It’s typically only available to the most prominent individuals angel investors, capital institutions, and syndicates. It is not usually available to family members or friends. However, new startups are attempting to challenge this exclusive arrangement by opening up access to startup capital in Africa. It is available for Android and iOS devices. It is free to use.

With the introduction of its cryptocurrency-based wallet, GetEquity is making startup investing in Africa possible for everyday investors. Investors can invest as low as $10 in African startups by using crypto funds. Although this may seem an insignificant amount when relative to equity funding traditionally however, it’s an enormous amount of money. With the recent exit from Paystack by Spark Capital GetEquity has become an excellent platform for investors from Africa who want to invest in Africa.

Bamboo

Bamboo’s first challenge is convincing young Africans to invest in the platform. Investors in Africa had limited options before now: crowdfunding, foreign direct investments (FDI) and old finance companies. In fact, less than a third 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. As of the time of writing, more than 50,000 Ghanaians have signed up for the waitlist.

Africans have limited alternatives to save money. With inflation running at nearly 16 percent and the currency depreciating against the dollar. It is possible to invest dollars to help safeguard against inflation as well as a falling dollar. One platform that allows Africans how to get investors in south africa 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.

Investors can fund their accounts starting at $20 once they are registered. The funding process can be accomplished through credit cards, bank transfers, and credit cards. Afterwards, they are able to trade ETFs and stocks and receive regular market updates. Bamboo’s platform is bank-level secure and therefore anyone in Africa can use it if they have an authentic Nigerian Bank Verification number. Bamboo’s services can also be used by professional investment advisors.

Chaka

Nigeria is a hub for legitimate business and investment. The film and entertainment industry in Nigeria is among the largest in Africa. The country’s expanding fintech ecosystem has led to an increase 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 will eventually open doors for a new class investors. Chaka also received seed-funds from Microtraction which is managed by Michael Seibel, CEO of Y Combinator.

The deteriorating US-China relationship has increased Beijing’s interest in African investments. Increasing anti-China sentiment and the trade war have increased the appeal of investors to invest in African companies that are not part of the US. The African continent has large, developing economies, however, most markets are too small to support venture-sized businesses. African entrepreneurs must be prepared to adopt an expansion mindset and craft a coherent expansion story.

The Central Securities Clearing System oversees the Nigerian Stock Exchange, making it a safe and secure platform to invest in African stocks. Chaka is free to join and provides the possibility of earning a 0.5% commission on every trade. Cash withdrawals of cash available can take up to 12 hours. The withdrawal of shares that have been sold however can take up to three days. Both cases are handled locally.

Rise

Africa is enjoying positive developments 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 has raised the standard of living in Africa. However, Africa is still a dangerous investment destination and investors must exercise caution and due diligence. There are plenty of opportunities to invest in Africa. However, the continent must make improvements to draw foreign capital. In the coming years, African governments should work to create more conducive environments for business and enhance the business environment.

The United States is more willing to invest in the economies of Africa via foreign direct investments. 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 cutting-edge technologies in Africa and also helped pharmacies in Kenya and Nigeria supply high-quality medications. This investment could lead to jobs and help build long-term partnerships between the U.S.A and Africa.

There are a lot of opportunities to invest in the African stock exchange. However, it’s important to know the market and perform your due diligence to avoid losing money. If you’re a small investor, it’s recommended to invest in exchange-traded funds (ETFs), which are funds that track an extensive basket of Sub-Saharan African companies. For U.S. investors looking for entrepreneurs, American depositary receipts (ADRs) are a simple method of trading African stocks in the U.S. stock market.