There are many reasons to invest, but investors should be aware that Africa will test their patience. The African markets are unstable and time horizons may not always work. Even the most sophisticated businesses might have to review their business plans, just as Nestle did last year in 21 African countries. Many countries also have deficits. It will take bold and resourceful investors to plug these gaps and bring more prosperity to Africans.
The $71 million investment by TLcom Capital TIDE Africa Fund
The latest venture from TLcom Capital has closed at a reported $71 million. The fund’s predecessor closed in January of this year. Five million dollars were donated by Sango Capital, Bio, CDC Group and TLcom. The first fund invested in tech companies in Kenya and Nigeria. 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 comprises Twiga Foods and Andela as along with uLesson and Kobo360. Each company is worth between $500,000 to $10 million.
TLcom is a Nairobi-based VC firm with more than $200 million in under management. The company’s managing partner, Omobola Johnson, has helped establish more than dozen tech companies across the continent which include Twiga Foods and a trucking logistics company. The investment firm’s team includes Omobola Johnson, a former Nigerian minister of technology and communication.
TIDE Africa is an equity fund that 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. 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 $71 million TEEP Fund
The Omidyar Network, a US-based philanthropic investing firm, aims to invest between $100 and $200 million in India over the next five years. The fund was established by eBay co-founder Pierre Omidyar and has invested $113 million in 35 Indian companies since 2010. In India the company invests in entrepreneurship, consumer Internet financial inclusion, government transparency property rights, as well as firms with social impact.
The Omidyar Network’s TEEP Fund invests in projects which improve access to government information. Its objective is to identify nonprofits using technology to develop public information portals and tools for citizens. The network believes that open access to government data increases the public’s understanding of government procedures, which leads to a more engaged society that holds officials accountable. Imaginable Futures will use the funds to invest in for-profit and non-profit organizations that focus on healthcare and education.
You should choose a company that is Africa-centric if you are looking to raise money for your African startup. One of these companies is TLcom Capital, a fund management firm that is based in London. Its African investments have attracted the attention of angel investors, and the team has raised funds in Nigeria and Kenya. TLcom has just announced the launch a new fund of $71 million to invest in 12 startups before they reach profitability.
The capital market is becoming more aware of the appeal of Africa venture capital. Private investors are increasingly recognizing the potential of Africa to grow and are not subject to the restrictions of institutional investors. This means that raising funds is much more simple than in the past. Raise can help businesses close deals in a fraction of the time and is also free of institutional restrictions. There is no single method to raise funds for African investors.
Understanding How to get investors investors perceive African investments is the first step. While YC hype is appealing to many investors, it’s important that you take a look beyond the Silicon Valley giant and Agenda 2063 of the African Union. African companies are now searching for the YC signal to approach US investors. Kyane Kassiri is a Tunisian venture capitalist, has recently spoke on the importance of the YC signal when it comes to raising money for African investors.
Established in July 2021, GetEquity is an investment platform that is based in Nigeria and aimed to make it easier for startups to access funding in Africa. It is aiming to make funding African startups accessible to all by providing capital-raising tools and world-class capital to all startups. It has already helped a number of startups get more than $150,000 in funding from investors from all over the world. It also provides secondary markets for investors to purchase tokens from other investors.
Contrary to equity crowdfunding investing in early-stage companies is a highly exclusive venture that is typically available to top capital institutions and angel investors, as well as syndicates. It’s not typically accessible to family members and friends. However, new companies are attempting to change this privilege by making it easier to access startup funding in Africa. It is accessible for both Android and iOS devices. It is free to use.
With the launch of its wallet based on blockchain, GetEquity is making startup investing in Africa a reality for ordinary investors. With the aid of crypto funds investors can invest in African startups for as little as $10. While this is a tiny amount, it’s still a significant amount of in comparison to traditional equity financing. After the recent withdrawal from Paystack by Spark Capital GetEquity has become an effective platform for African investors who want to invest in Africa.
The first hurdle for Bamboo is to convince young Africans to invest on the platform. Investors in Africa had limited options prior to now: crowdfunding, foreign direct investment (FDI) and old finance companies. About a third of Africans have invested on any platform. However the company claims it’s expanding into other parts of Africa and plans to launch in Ghana in April 2021. As of the time of writing, more than 50,000 Ghanaians have signed up on the waitlist.
Africans do not have many options to save money. With the rate of inflation reaching 16 percent, the currency is depreciating against the dollar. In investing in dollars, you can hedge against rising inflation and a falling currency. Bamboo is a platform that has seen rapid growth in the last two years, is a platform that allows Africans to invest in U.S. stock options. Bamboo plans to launch in Ghana in April 2021, and already has over 500 users who are waiting to get access.
Investors can fund their wallets starting at $20 after they have been registered. The funds can be accessed via credit cards, bank transfers and payment cards. After that, they can exchange ETFs and stocks, and receive regular market updates. Bamboo’s platform is bank-level secure and therefore anyone in Africa can use it provided they have an active Nigerian Bank Verification number. Professional investment advisors may also benefit from Bamboo’s services.
There are a number of reasons for why Nigeria is a thriving hub for legitimate investment and business. Its film and entertainment industry is among the continent’s biggest, and the country’s growing fintech sector has led to an explosion in the formation of startups and VC activity. One of the most prominent backers of Chaka, Iyinoluwa Aboyeji, told TechCrunch that the country’s modern trends will eventually open doors to a brand new group of 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. An increase in anti-China sentiment as well as the trade war has made it more appealing to investors to invest in African companies outside of the US. Although Africa is home to a variety of emerging economies, the majority of these are too small for venture-sized enterprises. African entrepreneurs must be prepared to adopt an expansion mindset and create a coherent expansion story.
The Central Securities Clearing System oversees the Nigerian Stock Exchange, private investor looking for projects to fund making it a safe and secure platform to invest in African stocks. Chaka is free to join, and you will be paid an 0.5% commission for every trade. Withdrawals of cash available can take as long as 12 hours. In the case of withdrawals of shares sold, on the other hand could take up to three days. In both instances the cash paid for the sold shares is settled locally.
Africa is receiving positive news from the increase in investors willing to invest. Its economy is stable , and its governance is sound, which is why it is a popular destination for how To get investors international investors. This has raised the standard of living in Africa. Africa is still a risky investment area. Investors should exercise caution and conduct their own due diligence. There are many opportunities for investment in Africa, but the continent must improve its infrastructure to attract foreign capital. African governments must collaborate to create a more conducive business environment and improve the business environment in the coming years.
The United States is increasingly willing to support African economies with foreign direct investment. In 2013, U.S. governments helped to develop 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 can help create jobs and foster long-term partnerships between the U.S.A and Africa.
There are many opportunities on the African stock exchange. However, it is important to know the market and to do your due diligence to avoid losing money. If you’re a modest investor, it’s recommended to invest in exchange-traded funds (ETFs), which are funds that track a diverse basket of Sub-Saharan African companies. For U.S. investors, American depositary receipts (ADRs) are an easy method of trading African stocks in the U.S. stock market.