Seven Ways To Investors Willing To Invest In Africa In 60 Minutes

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There are many good reasons to invest in Africa however, investors must be aware that the region will test their patience. The African markets are unstable and time horizons don't always work. Even the most sophisticated companies might need to re-evaluate their business plans, just as Nestle did in 21 African countries last year. Many countries also have deficits. It will require brave 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 by TLcom Capital closed at a reported $71 million. The fund's predecessor was shut down in January of last year. Five million dollars were donated 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 in East Africa. The investment firm has offices in Kenya and Nigeria. The portfolio of TLcom includes Twiga Foods and Andela as in addition to uLesson and Kobo360. The investment firm earns between $5000 and $10 million in each company.

TLcom, founded in Nairobi, is a VC company with more than $200 million under control. Omobola Johnson is one of the company's Managing Partner. He has been instrumental in helping launch more than a dozen tech companies on the continent, such as Twiga Foods, and a trucking logistics company. Omobola Johnson (a former minister of technology and communication in Nigeria) is part of the investment firm's team.

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 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. In Kenya, for example, TIDE has invested in five companies that are growing rapidly in the digital sector.

Omidyar Network's $71 Million TEEP Fund

The Omidyar Network, a US-based investment firm that invests in philanthropy, has set out to invest $100-$200 millions in India over five years. Pierre Omidyar, co-founder of eBay established the fund and has invested $113 Million in 35 Indian companies. In India the fund invests in consumer internet, entrepreneurship financial inclusion, transparency in government property rights, as well as firms with social impact.

The Omidyar Network's TEEP Fund makes investments that are designed to increase access to government information. It aims to identify non-profit organizations that utilize technology to develop public information portals and tools that are accessible to citizens. The network believes open access to government data increases the public's understanding of government processes, and can lead to an engaged society that ensures that government officials are accountable. Imaginable Futures will invest the funds in nonprofit and for-profit groups that focus on education as well as health.

Raise

If you're looking to raise funds for your African business, you must consider a firm with an African-centric focus. TLcom Capital, a fund manager located in London is one of these companies. Angel investors have been attracted to its African investments and the company has raised money in Nigeria and Kenya. TLcom recently announced the launch of a brand new $71 million fund, which aims to invest in 12 startups before they achieve revenue.

The appeal of Africa venture capital is being acknowledged by the capital market. Private investors are increasingly seeing the potential for Africa's growth and aren't limited by institutional investors. This means that raising money has never been more simple. Raise allows businesses to conclude deals in half of the time and is free from institutional constraints. But there's no one right method of raising funds for African investors.

Understanding how investors perceive African investments is the first step. While YC hype is appealing to investors of all kinds, it's important that you consider more than 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. A Tunisian venture capitalist Kyane Kassiri recently spoke out about the importance of the YC signal when seeking funds for African investors.

GetEquity

It was founded in July 2021. GetEquity is an investment platform that is based in Nigeria and aimed at democratizing startup funding in Africa. It wants to make the process of financing African startups accessible to everyone by bringing the best capital raising tools available to any startup. It has already helped a number of startups raise more than $150,000 from diverse investors. It also provides secondary markets for investors to buy tokens from other investors.

In contrast to equity crowdfunding investing in early-stage companies is investors looking for projects to fund in namibia a highly exclusive activity that is typically available to elite individual capital institutions and angel investors and syndicates. It is not accessible to family and friends. New startups are seeking to change this arrangement by making it easier to get capital for startups in Africa. It is accessible for both Android and iOS devices. It is free to use.

With the launch of its blockchain-based wallet, GetEquity is making startup investing in Africa feasible for all investors. Investors can invest as little as $10 in African startups by using crypto funds. While this may seem an insignificant amount as compared to traditional equity financing, it is still an enormous amount of cash. And with the recent exit of Paystack by Spark Capital, GetEquity has developed into a thriving ecosystem for investors who want to invest in Africa.

Bamboo

The first hurdle for Bamboo is convincing young Africans to invest in the platform. At present, investors in Africa were restricted to a handful of options which included foreign direct investments (FDI) or crowdfunding and the legacy finance companies. Only about a third of investors have 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 50.000 Ghanaians are on the waiting list as of this writing.

Africans don't have many options to save money. With inflation running at nearly 16 percent, the currency is depreciating against the dollar. 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. It plans to launch in Ghana in April 2021 and has more than 50k users waiting to gain access.

Once they have registered, investors can cash in their wallets using as little as $20. Funding can be done through credit cards, bank transfer, and payment cards. Then, they can trade ETFs and stocks and receive market updates. Since Bamboo's platform is bank-level secure, it can be used by anyone within Africa who has an acceptable Nigerian Bank Verification Number. Professional investment advisors can also use Bamboo's services.

Chaka

Nigeria is a major hub for legitimate investment and business. Nigeria's entertainment and film industry is among the biggest in Africa. The country's expanding fintech ecosystem has led to a boom in startup formations and VC activity. One of the most prominent supporters of Chaka, Iyinoluwa Aboyeji, told TechCrunch that the country's modern trends will eventually 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 that is run by Y Combinator CEO Michael Seibel.

Beijing has been more interested in African investments due to the declining relationship between the US and China. The trade war, as well as rising anti-China sentiment, make it more attractive for investors to consider investing outside of the US to invest in African companies. Although Africa is home to a variety of emerging economies, the majority of markets are not large enough for venture-sized companies. African entrepreneurs should be ready to adopt an expansion 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 investment in African stocks. Chaka is free to join, and you'll be paid an 0.5 percent commission for each 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. In both cases the cash paid for the sold shares is settled locally.

Rise

Africa is experiencing positive news due to the increasing number of investors looking to invest. Its economy is stable and its governance is sound, which attracts foreign investors. This growth has increased the standard of living in Africa. However, Africa is still a very risky investment and investors must take care and be careful. There are plenty of opportunities to invest in Africa. However Africa must make improvements to draw foreign capital. African governments must work together to create more business-friendly environment and improve the business environment in the coming years.

The United States is increasingly willing to aid African economies by facilitating foreign direct investment. In 2013, U.S. governments helped in the development of a major healthcare financing facility in Senegal. The U.S. government also helped get investment in the latest technologies in Africa and also assisted pharmacies in Kenya and Nigeria have access to high-quality medicines. This investment could create jobs and build long-term relationships between the U.S.A and Africa.

There are many opportunities on the African stock exchange. However, it is essential to know the market and do your due diligence to avoid losing money. If you're a modest investor, it is best to invest in exchange-traded funds (ETFs) which are funds that track a diverse selection of Sub-Saharan African companies. For U.S. investors, American depositary receipts (ADRs) are a convenient method of trading African stocks in the U.S. stock market.