SEBA 2021

There are many reasons to invest, but investors need to be aware that Africa is a place that tests their patience. The African markets aren’t always stable and time horizons may not always be effective. Even the most sophisticated firms might need to revise their business plans, like Nestle did last year in 21 African countries. Many countries also have deficits. These gaps must be filled by bold and resourceful investors who can bring more prosperity to Africa.

The $71 Million TLcom Capital’s TIDE Africa Fund

TLcom Capital’s latest venture has closed at a reported $71 million. The predecessor fund closed in January of this 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 be focusing on East African fintech firms. The investment firm also has offices in Nigeria and Kenya. TLcom’s portfolio comprises Twiga Foods and Andela as along with uLesson and Kobo360. Each company is worth between $500,000 to $10 million.

TLcom is a Nairobi-based VC firm with more than $200 million under management. The firm’s Managing Partner, Omobola Johnson, has helped launch over a dozen tech companies across the continent including Twiga Foods and a trucking logistics company. Omobola Johnson (a former minister of technology and communication in Nigeria) is part of the team of the investment firm.

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

Omidyar Network’s $71 million TEEP Fund

The Omidyar Network is a US-based charitable investment firm that hopes to invest between $100 and $200 million in India in the next five years. Pierre Omidyar, co-founder of eBay created the fund and has invested $113 million in 35 Indian companies. The firm invests in the Indian consumer internet, entrepreneurship , as well as financial inclusion. It also invests in property rights, government transparency, transparency of the government, and companies that have social impact.

The Omidyar Network’s TEEP Fund invests in projects that enhance access to government information. Its goal is to identify nonprofits that utilize technology to create public information portals and tools for citizens. The network believes that open access to government data increases the public’s understanding of government procedures, which results in a more active society that holds officials accountable. Imaginable Futures will use the funds to invest in for-profit and non-profit organizations that focus on education and healthcare.

Raise

If you’re looking to raise funds for your African startup, you should look for a business with an emphasis on Africa. One of these companies is TLcom Capital, a fund management company based in London. Its African investments have attracted the attention of angel investors, and the company has raised funds in Nigeria and Kenya. TLcom has announced the launch of a new fund worth $71 million, which will invest in 12 startups before they achieve profitability.

The capital market is becoming aware of the benefits of Africa venture capital. private investor looking for projects to fund investors are becoming more aware of the potential of Africa to grow and don’t face the constraints of institutional investors. This means that raising money has never been easier. Raise allows businesses to close deals in half the time and is free from institutional constraints. There’s no single best method to raise funds for African investors.

Understanding how investors view African investments is the first step. Although many investors are attracted to YC hype, it’s important 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 engage with US investors. Kyane Kassiri is an Tunisian venture capitalist, has recently talked about the importance the YC signal when it comes to raising funds for African investors looking for entrepreneurs.

GetEquity

Founded in July 2021, GetEquity is an investment platform in Nigeria aimed at democratizing startup funding in Africa. It aims to make the process of financing African startups easy for the average person by providing world-class capital raising tools to any startup. It has already assisted numerous startups get more than $150,000 in funding from investors willing to invest in africa of all kinds. Additionally, it offers a secondary market for Investors Looking For Entrepreneurs investors to purchase other people’s tokens.

Unlike equity crowdfunding investing in companies in the early stages is a highly exclusive venture that is usually only available where to find investors in south africa leading individual angel investors and capital institutions, as well as syndicates. It is not accessible to family members and friends. However, new startups are trying to disrupt this privileged arrangement by democratizing access to startup funding in Africa. The platform is available on iOS and Android devices and is completely free to use.

With the introduction of its wallet based on blockchain, GetEquity is making startup investing in Africa an option for common investors. With the help of crypto funds, investors can invest in African startups starting at just $10. Although it’s a small amount, it’s still substantial money compared to traditional equity financing. Following the recent demise of Paystack by Spark Capital GetEquity has become an excellent platform for African investors who want to invest in Africa.

Bamboo

The first hurdle for Bamboo is convincing young Africans to invest on the platform. At present investors in Africa were limited to a handful of options: foreign direct investment (FDI) as well as crowdfunding and legacy finance companies. A mere third of the African population has been able to invest on any platform. However the company claims it’s expanding into other parts of Africa and plans to launch in Ghana in April 2021. As of this writing more than 50,000 Ghanaians have signed up on the waitlist.

Africans have limited alternatives to save money. The value of the currency is decreasing against the dollar due to an increase of more than 16%. It is beneficial to invest in dollars to hedge against the effects of inflation and a declining currency. One platform that allows Africans to invest in U.S. stocks is Bamboo, which has experienced rapid growth in the past two years. 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 registered, investors can cash in their wallets using just $20. The funding process can be accomplished through credit cards, bank transfers, and credit cards. In the future, users can exchange ETFs and stocks and receive regular market updates. Since Bamboo’s platform is secure at the bank level it is accessible by anyone within Africa who has an acceptable Nigerian Bank Verification Number. Professional investment advisors may also utilize Bamboo’s services.

Chaka

There are several reasons that Nigeria is a thriving hub for legitimate investment and business. The Nigerian film and entertainment industry is one of the largest in Africa. The country’s expanding fintech ecosystem has led to an increase in startup formations and VC activity. One of the most prominent supporters of Chaka, Iyinoluwa Aboyeji, said to TechCrunch that the country’s progressive changes will eventually open the 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 US-China relationship has increased Beijing’s interest in African investments. The trade conflict, as well as rising anti-China sentiment, have made it more appealing for investors to look beyond the US to invest in African companies. While Africa is home to many emerging economies, the majority of markets are too small for venture-sized companies. African entrepreneurs must be prepared to adopt an expansion-minded 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 location to invest in African stocks. Chaka is free to join and you’ll be paid an 0.5 percent commission on every trade. Cash withdrawals that are available take up to 12 hours. Withdrawals of sold shares however can take as long as three days. Both cases are handled locally.

Rise

The increasing number of investors who are willing to invest in Africa is good news for Africa. Its economy is stable and its governance is sound, which attracts international investors. This has raised the standard of living in Africa. However, Africa is still a risky investment area and investors looking for projects to fund in namibia investors should be cautious and exercise due diligence. There are plenty of opportunities for investment in Africa however, the continent needs to improve its infrastructure to draw foreign capital. In the next few years, African governments should work to create more conducive environments for business and improve their business environment.

The United States is increasingly willing to support African economies through direct foreign investment. In 2013, U.S. governments helped to develop a major healthcare financing facility in Senegal. The U.S. government also helped secure investment in new technologies in Africa, angel investors south africa and helped pharmacies in Kenya and Nigeria have access to high-quality medicines. This investment can create jobs and build long-term relationships between the U.S.A and Africa.

While there are several opportunities to invest in the African stock market, it is vital to be aware of the market and perform due diligence to ensure you do not lose money. If you’re a small investor, you should invest in exchange-traded funds (ETFs) which are funds that track a broad basket of Sub-Saharan African companies. American depositary receipts (ADRs), which are issued by the United States, allow investors to trade African stocks on the U.S. stock exchange.