What Does It Really Mean To Investors Willing To Invest In Africa In Business?

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There are many reasons to invest in Africa but investors should 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 may need to reconsider their business plans, just as Nestle did last year in 21 African countries. Many countries also have deficits. These gaps will need to be filled by resourceful and bold investors who can bring more prosperity to Africa.

The $71 Million TLcom Capital's 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, and TLcom, Bio, CDC Group, and Sango Capital contributed five million dollars. The first fund made investments 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, Andela, uLesson, and Kobo360. The investment firm earns between $500,000 and $10 million in each of the companies.

TLcom is a Nairobi-based VC firm with more than $200 million in under management. The company's managing partner, Omobola Johnson, has helped to launch more than dozen tech-related companies across the continent, including Twiga Foods and a trucking logistics company. The investment firm's team is comprised of Omobola Johnson, who was the former Nigerian minister of technology and communication.

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 companies that are at the beginning of their development and will focus on Series A and II rounds. The fund will be primarily 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 is a US-based company that invests in philanthropy that aims to invest between $100 and $200 million in India over the next five years. Pierre Omidyar, co-founder of eBay was the fund's founder and has invested $113 Million in 35 Indian companies. In India the fund invests in entrepreneurship, consumer Internet, financial inclusion, transparency in government, property rights, and businesses that have social impact.

The Omidyar Network's TEEP Fund makes investments that are designed to improve access to government information. It is a way to identify non-profits that use technology to build public information portals and tools that are accessible to citizens. The network believes that open access to government data increases the public's understanding of government processes, which creates a more involved society that holds officials accountable. Imaginable Futures will use the funds to invest in for-profit and non-profit organisations that focus on healthcare and education.

Raise

If you're planning to raise funds for your African start-up, you need to look for a business with an African-centric focus. TLcom Capital, a fund manager based in London, is one such company. 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 new $71 million fund that intends to invest in 12 startups before they can achieve revenue.

The capital market is becoming more aware of the benefits of Africa venture capital. Private investors are increasingly recognizing the potential of Africa's development and don't need to be limited by institutional investors. This means that raising funds is much simpler than it was in the past. Raise allows businesses to close deals in half of the time and is completely free from institutional constraints. However, there isn't a single right way to raise 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 is crucial to consider more than the Silicon Valley giant and Agenda 2063 of the African Union. African startups are now looking for the YC signal to engage with US investors. A Tunisian venture capitalist Kyane Kassiri has recently spoken out about the importance of the YC sign when raising funds for African investors.

GetEquity

Established in July 2021, GetEquity is an investment platform in Nigeria aimed to make it easier for startups to access funding in Africa. It aims to make financing African startups more accessible to everyone through the provision of capital raising tools and world-class capital for all startups. It has already helped a number of startups get more than $150,000 in funding from investors from all over the world. Additionally, it provides a secondary market that allows investors to buy other people's tokens.

Contrary to equity crowdfunding investing in early-stage companies is a very exclusive business that is usually only available to the top individual capital institutions and angel investors and syndicates. It's not typically accessible to family members or friends. New startups are attempting to change this unwelcome arrangement by making it easier to get capital for startups in Africa. It is available on both Android and iOS devices. It is free to use.

With the launch of its wallet that is based on blockchain technology, GetEquity is making startup investing in Africa feasible for all investors. With the help of crypto-based funds, investors can invest in African startups for as little as $10. Although this may seem a small amount compared to traditional equity funding however, it's an impressive amount of money. With the recent departure from Paystack by Spark Capital GetEquity has become a strong ecosystem for investors from Africa who want to invest in Africa.

Bamboo

The first challenge for Bamboo is to persuade young Africans to invest in the platform. Investors in Africa had only a few options prior to the present the crowdfunding platform as well as foreign direct investment (FDI), and legacy finance companies. Only about a third of investors have invested on any platform. But now the company business funding claims it's expanding into other parts of Africa with plans to launch in Ghana in April 2021. At the time of writing, more than 50,000 Ghanaians have signed up on the waitlist.

Africans do not have many options for saving money. With the rate of inflation reaching 16% the currency is declining against the dollar. A dollar investment can help protect yourself from inflation and falling dollar. Bamboo has seen rapid growth in the past two years, is a platform that lets Africans to invest in U.S. stock options. Bamboo plans to begin operations in Ghana in April 2021, and already has more than 50,000 people waiting to be able to access.

Once they have registered, investors can cash in their wallets using just $20. Funding can be made through credit cards, bank transfers and credit cards. Then, they can trade ETFs and stocks and receive market updates. Bamboo's platform is secured at the bank level and therefore anyone in Africa can use it if they have an active Nigerian Bank Verification number. Bamboo's services can also be used by professional investment advisers.

Chaka

Nigeria is a center for legitimate investment and business. The film and entertainment industry is among the top in the world, and the country's growing fintech industry has resulted in an explosion in startup formation and VC activity. One of the most prominent backers of Chaka, Iyinoluwa Aboyeji, told TechCrunch that the country's progressive trends will ultimately 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 deteriorating relationship between China and the US has accelerated Beijing's interest in African investments. The trade conflict, as well as the rising anti-China sentiment make it more attractive for investors to look beyond the US to invest in African companies. While Africa has a number of developing economies, the majority of markets are not big enough for venture-sized companies. African entrepreneurs must be prepared to adopt an expansion mindset and create a coherent 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 you'll receive a 0.5 percent commission on every trade. Cash withdrawals of cash available can take up to 12 hours. On the other hand, withdrawals for sold shares can take up to three working days. In both instances the cash paid for the sold shares is settled locally.

Rise

The rising number of investors eager to invest in Africa is good news for Africa. The country's economy is stable and its governance is sound, which draws international investors. This has led to an increase in the standard of living in Africa. However, Africa is still a risky investment area and investors should be cautious and exercise due diligence. There are plenty of opportunities for investment in Africa, but the continent needs to improve its infrastructure to attract foreign capital. In the coming years, African governments should work to create more conducive environments for business and improve their business climate.

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 supported investment in new technologies in Africa and also helped pharmacies in Nigeria and Kenya have access to high-quality medicines. This investment can help create jobs and create long-term partnerships between the U.S.A and Africa.

While there are several opportunities to invest in the African market for stocks It is essential to know the market and conduct proper due diligence to ensure you don't lose money. If you're a modest investor, you should 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 to trade African stocks in the U.S. stock market.