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 do not always work. Even the most sophisticated companies might need to reevaluate their business plans, just as Nestle did last year in 21 African countries. Many countries also have deficits. These gaps must be filled by bold and resourceful investors who will bring more prosperity to Africa.
TLcom Capital’s $71 Million TIDE Africa Fund
The latest venture by TLcom Capital was closed at $71 million. The fund’s predecessor closed in January of last year, and TLcom, Bio, CDC Group and Sango Capital contributed five million dollars. The first fund was 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 anywhere from $500,000 to $10 million.
TLcom is a Nairobi-based VC firm with more than $200 million in under management. Omobola Johnson is the managing partner of the company. He has been instrumental in helping start more than a dozen tech businesses in Africa, including Twiga Foods, and a trucking logistics company. The investment firm’s team includes Omobola Johnson, who was a former Nigerian minister of technology and communication.
TIDE Africa is an equity investment 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 angel investors south africa Southern African countries. In Kenya, for example, TIDE has invested in five high-growth digital companies.
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 the next five years. The fund was started by eBay co-founder Pierre Omidyar and has invested $113 million in 35 Indian companies since the year 2010. The firm invests in India’s business and consumer internet, as well as financial inclusion. It also has investments in property rights, government transparency as well as government transparency companies that have social impact.
The Omidyar Network’s TEEP Fund makes investments that are designed to improve access and accessibility to government information. It seeks to identify non-profit organizations that utilize technology to develop public information portals and tools for citizens. The group believes that access to government information enhances the knowledge of citizens about government processes and creates an active society that ensures that government officials are accountable. Imaginable Futures will use the funds to invest in for-profit and non-profit organizations that focus on healthcare and education.
If you’re planning to raise funds for your African business, you must look for a company with a strong Africa-centric focus. One such company is TLcom Capital, a fund management firm based in London. Angel investors south africa, 5mfunding.com, investors have been attracted to its African investments and the team has raised funds in Nigeria and Kenya. TLcom recently announced the launch a new fund of $71 million that will invest in 12 startups before they reach profitability.
The capital market is increasingly aware of the benefits of Africa venture capital. More private investors are recognizing the potential of Africa to grow, angel investors south africa and don’t have the same restrictions as institutional investors. This means that raising funds is never easier. Raise allows companies to close deals in half the time and is completely without institutional limitations. There’s no perfect way to raise funds for African investors.
The first step is to learn what investors think about African investments. Although many investors are attracted to YC hype, it’s vital to be aware of the broader implications of this Silicon Valley giant and the African Union’s agenda 2063. African startups are now looking for the YC signal to approach US investors. Kyane Kassiri, a Tunisian venture capitalist, recently talked about the importance the YC signal when it comes to raising money for African investors.
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 easier for everyone by offering capital raising tools and world-class capital for all startups. The platform has already helped startups raise more than $150,000 from a range of investors. Additionally, it offers a secondary market to investors to purchase other people’s tokens.
In contrast to equity crowdfunding investing in early-stage companies is a very exclusive business that is typically only available to the top individual angel investors and capital institutions and syndicates. It isn’t often accessible to friends and family. However, new companies are trying to change this privilege by increasing access to startup funds in Africa. It is available for Android and iOS devices. It is free to use.
With the introduction of its wallet based on blockchain, GetEquity is making startup investing in Africa a reality for ordinary investors. With the help of crypto funds, investors can invest in African startups starting at just $10. Although this is a modest amount, it’s still significant when compared 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 challenge for Bamboo is to persuade young Africans to invest on the platform. Until now, investors in Africa were restricted to a few limited options: foreign direct investment (FDI), crowdfunding, and old finance companies. In actuality, only 1/3 of the population has invested in any platform. But now the company claims it’s expanding into other regions of Africa with plans to launch in Ghana in April 2021. More than 50, 000 Ghanaians are waiting to be added to the waitlist as of this writing.
Africans have few options for saving money. With inflation at around 16% the currency is declining against the dollar. It is possible to invest dollars to help to protect yourself against inflation and the possibility of a declining dollar. One platform that allows Africans to invest in U.S. stocks is Bamboo, which has experienced rapid growth over the past two years. Bamboo plans to begin operations in Ghana in April 2021, and already has more than 50,000 users waiting for access.
Investors can fund their wallets as early at just $20 once they’re registered. Funding can be made through credit cards, bank transfers, and payment cards. After that, they can trade ETFs and stocks, and receive regular market updates. Bamboo’s platform is bank-level secure which means that anyone in Africa can use it as long as they have a valid Nigerian Bank Verification number. Professional investment advisors can also make use of Bamboo’s services.
Nigeria is a center for legitimate business and investment. Its movie and entertainment industry is among the largest in the world and the country’s expanding fintech sector has led to an increase in startup formation and VC activity. One of the most well-known backers of Chaka, Iyinoluwa Aboyeji, said to TechCrunch that the country’s modern trends will ultimately open doors to a new category of investors. In addition to the Aboyeji investment, Chaka has also secured seed-funds from the Microtraction fund, which is led by Y Combinator CEO Michael Seibel.
The degrading relationship between the US and China has increased Beijing’s interest in African investments. The growing anti-China sentiment and trade war has made it more attractive for investors to invest in African companies that aren’t in the US. The African continent is home to large, emerging economies however, most markets are too small to support venture-sized businesses. African entrepreneurs should be prepared to adopt an expansion-minded mindset and craft a coherent 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 receive a 0.5 percent commission on every trade. Cash withdrawals that are available take up to 12 hours. On the other hand, angel investors south africa withdrawals of sold shares can take up to three days. In both cases, the cash for sold shares is settled locally.
Africa is enjoying positive developments due to the increasing number of investors who are willing to invest. Its economy is stable and its governance is sound, which attracts foreign investors. This has led to a rise in the standard of living in Africa. However, Africa is still a dangerous investment destination, so investors must exercise caution and due diligence. There are numerous opportunities for investment in Africa, but the continent needs to improve its infrastructure to attract foreign capital. African governments must work together to create more business-friendly environment and improve the business climate in the next few years.
The United States is more willing to invest in the economies of Africa via foreign direct investments. In 2013, U.S. governments helped develop a major financing for healthcare facility in Senegal. The U.S. government also helped secure investment in cutting-edge technologies in Africa and also assisted pharmacies in Kenya and Nigeria have access to high-quality medicines. This type of investment could generate jobs and build a long-term partnership between the U.S. and Africa.
There are numerous opportunities available on the African stock exchange. However, it is crucial to be aware of the market and do your due diligence to avoid losing money. If you’re a modest investor, it’s a smart idea to invest in an exchange-traded fund (ETFs) that track an array of Sub-Saharan African businesses. For U.S. investors, American depositary receipts (ADRs) are an easy method of trading African stocks in the U.S. stock market.