Three Surprisingly Effective Ways To Investors Willing To Invest In Africa

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There are many reasons to invest, but investors must be aware that Africa can test their patience. The African markets can be unstable and time horizons might not always be effective. Even sophisticated businesses may need to re-evaluate their business plans, just as Nestle did in 21 African countries last year. Many countries also face deficits. These gaps must be filled by bold and resourceful investors who can bring greater 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 was shut down in January last year. Five million dollars were contributed by Sango Capital, Bio, CDC Group and TLcom. The fund's first investment was in a dozen tech companies in Kenya, Nigeria, and South Africa. TIDE Africa II will focus on fintech companies in East Africa. The investment firm also has offices in Nigeria and Kenya. TLcom's portfolio includes Twiga Foods, Andela, uLesson, and Kobo360. The investment company makes 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 firm's Managing Partner, Omobola Johnson, has helped to launch more than a dozen tech companies across the continent, including Twiga Foods and a trucking logistics company. Omobola Johnson (a former minister of communication technology in Nigeria) is part of the investment firm's team.

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 companies in the early stages, with an emphasis on Series A and B rounds. Although the fund will focus on Anglophone Africa, it plans to invest in Eastern and Southern African countries, too. 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 $100-$200 million in India over the next five years. Pierre Omidyar, co-founder of eBay created the fund and has invested $113 Million in 35 Indian companies. In India, the firm 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 that enhance access to government information. It's goal is to find non-profits using technology to develop public information portals and tools for citizens. The network believes that having open access to government data increases the public's understanding of government processes, which in turn results in a more active society that holds officials accountable. Imaginable Futures will use the funds to invest in non-profit and for-profit companies that focus on education and healthcare.

Raise

If you're looking to raise funds for your African startup, you should look for a company with an emphasis on Africa. One such company is TLcom Capital, a fund management firm based in London. Angel investors have been drawn to its African investments, and the company has raised funds in Nigeria and Kenya. TLcom recently announced the launch of a new $71 million fund, which aims 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 increasingly realizing the potential for Africa's growth and aren't limited by institutional investors. This means that raising money is never easier. Raise can help businesses close deals in half the time, and is free of institutional constraints. But there's no one right method to raise funds for African investors.

Understanding how investors view African investments is the first step. While YC hype is appealing to many investors but it's crucial to look beyond the Silicon Valley giant and Agenda 2063 of the African Union. Therefore, African startups are looking for the YC signal before approaching US investors. Kyane Kassiri is an Tunisian venture capitalist, has recently spoke on the importance of the YC signal when it comes to raising money for African investors.

GetEquity

Founded in July 2021, GetEquity is an investment platform in Nigeria aimed at democratizing startup funding in Africa. It aims to make financing African startups accessible to all by offering capital raising tools and world-class capital for all startups. The platform has already helped startups raise over $150,000 from a diverse range of investors. Additionally, it provides a secondary market that allows investors to purchase other investors' tokens.

Contrary to equity crowdfunding, investing in early-stage companies is a highly exclusive activity that is typically available to elite individual angel investors and capital institutions as well as syndicates. It isn't often accessible to friends and family. New startups are trying to change this arrangement by making it easier to get capital for startups in Africa. It is available for Android and iOS devices. It is free to use.

GetEquity's blockchain-based wallet is now available for investors. This makes it possible to invest in startups in Africa. Investors can invest as low as $10 in African startups with the help of crypto funds. While this may seem an insignificant amount in comparison to traditional equity funding, it is still an enormous amount of money. With the recent departure from Paystack by Spark Capital GetEquity has become an effective platform for investors from Africa who want to invest in Africa.

Bamboo

The first angel investors south africa hurdle for Bamboo is to persuade young Africans to invest in the platform. Investors in Africa had limited options prior to now including crowdfunding 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 claims it's expanding into other parts of Africa, with plans to launch in Ghana in April 2021. More than 100,000 Ghanaians are on the waiting list as of this writing.

Africans have few options to save money. With inflation at around 16 percent and the currency depreciating against the dollar. It is beneficial to invest in dollars to protect against inflation and a falling currency. Bamboo has seen rapid growth in the last two years, is one platform that lets Africans invest in U.S. stock options. Bamboo is set to launch in Ghana in April 2021 and already has more than 50,000 users waiting for access.

Investors can fund their wallets as early at $20 after they have been registered. You can fund your account using credit cards, bank transfers, or credit cards. Then, they can trade ETFs, stocks, and stocks and receive market updates. Bamboo's platform, which is bank-level secure it is accessible by anyone within Africa who can provide an official Nigerian Bank Verification Number. Professional investment advisors may also benefit from Bamboo's services.

Chaka

There are a number of reasons why Nigeria is a thriving hub for legitimate business and investment. Its film and entertainment industry is among the biggest in the continent and the country's growing fintech industry has led to a boom in startup formation and VC activity. One of the most prominent backers of Chaka, Iyinoluwa Aboyeji, said to TechCrunch that the country's modern developments will eventually open doors to a new class of investors. In addition to Aboyeji's investment, Chaka has also secured seed-funds from the Microtraction fund which is managed by Y Combinator CEO Michael Seibel.

The weakening relationship between the US and China has increased Beijing's interest in African investments. Increasing anti-China sentiment and the trade war have made it more attractive to investors to invest in African companies that aren't in the US. The African continent has huge, developing economies, however, the majority of markets are too small to support venture-sized companies. African entrepreneurs should be prepared 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 safe and secure location to invest in African stocks. Chaka is free to join, and you will be paid the 0.5 percent commission on every trade. Cash withdrawals are able to take up 12 hours. Refunds for shares that were sold on the other hand can take up to three days. Both cases are handled locally.

Rise

Africa is seeing positive news from the increased number of investors willing to invest. Its economy is stable, and its governance is sound, which attracts foreign investors. This growth has raised the standard of living in Africa. Africa is still a risky investment destination. Investors should be cautious and do their study. There are plenty of opportunities to invest in Africa. However Africa must make improvements to draw foreign capital. In the coming years, African governments should work to create more business-friendly environments and improve its business environment.

The United States is increasingly willing to help African economies through foreign direct investment. U.S. governments assisted Senegal in advancing a significant healthcare financing facility. The U.S. government also supported investment in new technology in Africa and helped pharmacies in Nigeria and Kenya provide high-quality medication. This investment can help create jobs and help build long-term partnerships between the U.S.A and Africa.

There are many opportunities to invest in the African market for stocks it is crucial to be aware of the market and perform due diligence to make sure that you do not lose money. If you're a smaller investor it is a good idea to invest in an exchange traded fund (ETFs), which tracks various Sub-Saharan African businesses. American depositary receipts (ADRs) that are issued by the United States, allow investors to trade African stocks on the U.S. stock exchange.