3 Ridiculously Simple Ways To Improve The Way You Investors Willing To Invest In Africa
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There are many reasons to invest, but investors must be aware that Africa will test their patience. The African markets can be volatile and time horizons may not always work. Even the most sophisticated companies might need to recalibrate their business plans, like Nestle did in 21 African countries last year. Many countries also have deficits. These gaps will need to be filled by smart and savvy investors who will bring more prosperity to Africa.
The $71 million of TLcom Capital's TIDE Africa Fund
The latest venture of TLcom Capital has closed at a reported $71 million. The predecessor fund was closed in January 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 in East Africa. The investment firm also has offices in Nigeria and Kenya. The portfolio of TLcom comprises Twiga Foods and Andela as well as uLesson and Kobo360. The investment firm makes between $500,000 and $10 million for each company.
TLcom, located in Nairobi, a VC company has more than $200 million under control. Omobola Johnson is the company's Managing Partner. He has helped launch more than a dozen tech companies on the continent, including Twiga Foods, and a trucking logistics business. Omobola Johnson (a former minister of communication technology in Nigeria) is part of the team of the investment firm.
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, with a focus on Series A and II rounds. While the fund will concentrate on Anglophone Africa, it plans to invest in Eastern and Southern African countries, too. TIDE is one example. It has invested in five high-growth digital companies in Kenya.
Omidyar Network's $71 million TEEP Fund
The Omidyar Network, a US-based company that invests in philanthropy, hopes to invest between $100-$200 million in India over five years. The fund was established by eBay co-founder Pierre Omidyar and has invested $113 million in 35 Indian companies since the year 2010. In India the company invests in entrepreneurship, consumer internet financial inclusion, government transparency property rights, and firms with social impact.
The Omidyar Network's TEEP Fund invests in projects which improve access to government information. Its mission is to identify nonprofits that utilize technology to develop public information portals and tools for citizens. The group believes that access to government information enhances the public's knowledge of government processes and leads to an engaged society that holds government officials accountable. Imaginable Futures will invest the funds in non-profit and for-profit organizations that focus on education and health.
You should pick a business that is based in Africa if you want to raise funds for your African startup. One of these companies is TLcom Capital, a fund management firm with its headquarters in London. Its African investments have caught the attention of angel investors, and the company has raised funds in Nigeria and Kenya. TLcom recently announced the launch of a brand new $71 million fund that intends to invest in 12 startups before they can achieve revenue.
The attraction of Africa venture capital is increasingly being acknowledged by the capital market. Private investors are becoming increasingly aware of the potential of Africa's development and don't have to be restricted by institutional investors. This means that raising money is much more simple than it was in the past. Raise allows businesses to close deals in a fraction of the time and is completely without institutional limitations. But there's no one right method to raise money for African investors.
The first step is to comprehend how investors think about African investments. Although many investors are attracted to YC hype, it's essential to think beyond this Silicon Valley giant and the Agenda 2063 of the African Union. African startups are now looking for the YC signal to engage with US investors. Kyane Kassiri, a Tunisian venture capitalist, has recently spoke on the importance of the YC signal when it comes to raising funds for African investors.
GetEquity, an investment platform that is based in Nigeria was launched in July 2021. It aims at democratizing the funding of startups in Africa. It aims to make funding African startups accessible to all by providing capital-raising tools and world-class capital for investors looking for entrepreneurs all startups. The platform has already helped startups raise over $150,000 from a range of investors. Additionally, Angel investors South Africa it provides a secondary market for investors to purchase other investors' tokens.
Like equity crowdfunding, investing in early-stage companies is a highly privileged activity that is typically available to top capital institutions and Angel investors south Africa - www.5mfunding.com - investors as well as syndicates. It is not accessible to family and friends. New startups are trying to change this exclusive arrangement by making it easier to access capital for startups in Africa. It is available for Android and iOS devices. It is free to use.
The GetEquity's wallet based on blockchain is now accessible to investors. This makes it possible to invest in startups from Africa. With the help of crypto-based funds, investors can invest in African startups starting at just $10. Although this is a small amount, it's still significant in comparison to traditional equity financing. With the recent exit from Paystack by Spark Capital GetEquity has become an excellent platform for African investors looking to invest in Africa.
Bamboo's first obstacle is convincing young Africans to invest on the platform. At present investors in Africa were restricted to a handful of options including foreign direct investment (FDI) and crowdfunding and old finance companies. A mere third of the African population has invested on any platform. But now the company is expanding into other regions of Africa with plans to launch in Ghana in April 2021. More than 50, 000 Ghanaians are on the waitlist as of this writing.
Africans have few options for saving money. The currency is losing value against the dollar because of an 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 past 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 wallets as early at just $20 once they're registered. You can fund your wallet using credit cards, bank transfers, or credit cards. Afterwards, they can exchange ETFs and stocks, and receive regular market updates. As Bamboo's platform is secure at the bank level it is accessible by anyone within Africa who can provide an acceptable Nigerian Bank Verification Number. Bamboo's services can also be utilized by professional investment advisers.
There are many reasons that Nigeria is a hub for legitimate investment and business. Nigeria's film and entertainment industry is one of the largest in Africa. The country's growing fintech industry has led to an explosion in the number of startups and VC activity. TechCrunch spoke with Iyinoluwa Abodeji. She is one of Chaka's most prominent investors. She stated that the trend towards progress in the country will eventually open the doors to new investors. In addition to the investment of Aboyeji, Chaka has also secured seed-funds from the Microtraction fund, which is led by Y Combinator CEO Michael Seibel.
Beijing has been more interested in African investments due to the weakening relationship between the US and China. Increasing anti-China sentiment and the trade war have made it more attractive for investors to invest in African companies that are not part of the US. Although the continent of Africa is home to a variety of emerging economies, the majority of them are not big enough for venture-sized firms. The founders of companies in Africa should be prepared to adopt an expansionist mindset and be locked in a consistent expansion story.
The Central Securities Clearing System oversees the Nigerian Stock Exchange, making it a secure and safe platform to invest in African stocks. Chaka is free to join, and you'll be paid a 0.5 percent commission on every trade. Withdrawals of available cash can take up to 12 hours. Withdrawals of sold shares, on the other hand can take as long as three days. In both cases the cash payment for sold shares is settled locally.
The rising number of investors eager to invest in Africa is a positive sign for Africa. The country's economy is stable and its governance is sound, which attracts foreign investors. This has led to an increase in living standards in Africa. Africa is still a risky investment spot. Investors should exercise caution and do their studies. There are plenty of opportunities to invest in Africa. However Africa must improve its infrastructure to attract foreign capital. African governments must collaborate to create a more business-friendly environment and improve the business environment in the coming years.
The United States is increasingly willing to help African economies through direct foreign investment. U.S. governments assisted Senegal in advancing a major health financing facility. The U.S. government also helped secure investment in new technologies in Africa, and helped pharmacies in Kenya and Nigeria provide high-quality medication. This kind of investment can generate jobs and build a long-term partnership between the U.S. and Africa.
While there are several opportunities in the African stock market it is crucial to know the market and conduct proper due diligence to make sure that you do not lose money. If you're a smaller 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 a simple method to trade African stocks in the U.S. stock market.