Notes

9 Ways To Investors Willing To Invest In Africa Persuasively
There are many reasons to invest in Africa investors should be aware that the region will test their patience. The African markets can be volatile and time horizons might not always be effective. Even the most sophisticated firms might need to reevaluate their business plans as Nestle did last year in 21 African countries. Many countries also have deficits. These gaps will need to be filled by bold and resourceful investors who will bring more prosperity to Africa.

The $71 Million TLcom Capital's TIDE Africa Fund

TLcom Capital's latest venture closed at $71 million. The fund's predecessor shut down in January of last year. 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 be focusing on East African fintech companies. The investment firm has offices in Kenya and Nigeria. The portfolio of TLcom is comprised of Twiga Foods and Andela as well as uLesson and Kobo360. Each company is worth $500,000 to $10 million.

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. Omobola Johnson (a former minister of technology for communication 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 companies in the early stages, with an emphasis on Series A and B rounds. The fund will be focused on Anglophone Africa but it plans to invest in Eastern, and Southern African countries. In Kenya, for example, TIDE has invested in five digital companies with high growth.

Omidyar's $71 Million TEEP Fund

The Omidyar Network is a US-based philanthropic investment firm that aims to invest $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 2010. The firm invests in India's consumer internet, entrepreneurship , and financial inclusion. It also has investments in property rights, transparency in government and transparency in government as well as companies that have a social impact.

The Omidyar Network's TEEP Fund invests in projects which improve access to government information. Its goal is to identify nonprofits that use technology to develop public information portals and tools for citizens. The group believes that access to government information increases public knowledge about government processes and creates an active society that makes government officials accountable. Imaginable Futures will invest the money in for-profit and nonprofit organizations focusing on education and health.

Raise

It is important to choose a firm that is based in Africa if you are looking to raise capital for your African startup. TLcom Capital, a fund manager with its headquarters in London, is one of these companies. Angel investors have been drawn to its African investments and the team has also raised funds in Nigeria and Kenya. TLcom recently announced the launch of a brand new $71 million fund, which aims to invest in 12 startups prior to them reaching revenue.

The capital market is becoming more aware of the potential appeal of Africa venture capital. More private investors are recognizing the potential of Africa to grow and are not subject to the restrictions of institutional investors. This means that raising funds is much easier than in the past. Raise helps businesses to close deals in half the time and is devoid of institutional restrictions. However, there isn't a single right method of raising funds for African investors.

The first step is to know the mindset of investors regarding African investments. Although many investors are attracted to YC hype, it's essential to think beyond this Silicon Valley giant and the African Union's agenda 2063. As a result, African entrepreneurs are seeking the YC signal before approaching US investors. Kyane Kassiri, a Tunisian venture capitalist, has recently talked about the importance the YC signal when it comes to raising funds for African investors.


GetEquity

GetEquity, a Nigeria-based investment platform, was launched in July 2021. Its goal is to make the funding of startups in Africa. It aims to make funding African startups accessible to all through the provision of capital raising tools and world-class capital to all startups. It has helped numerous startups raise more than $150,000 from investors of all kinds. It also offers secondary markets for investors to buy tokens from other investors.

Like equity crowdfunding investing in companies in the early stages is a highly exclusive venture which is generally only accessible to the top individual angel investors and capital institutions, as well as syndicates. It is not accessible to family and friends. New startups are seeking 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 cryptocurrency-based wallet, GetEquity is making startup investing in Africa possible for everyday investors. Investors can invest as low as $10 in African startups with the help of crypto funds. While this may seem like a small amount in comparison to traditional equity funding however, it's a significant amount of money. And with the recent exit of Paystack by Spark Capital, GetEquity has become a formidable platform for investors who are willing to invest in Africa.

Bamboo

The first hurdle for Bamboo is to persuade young Africans to invest on the platform. Investors in Africa had limited options before now such as crowdfunding, foreign direct investments (FDI), and legacy finance companies. Only about a third have been able to invest on any platform. The company has announced that it is expanding into other countries in Africa, with plans to launch in Ghana in April 2021. More than 50,000 Ghanaians are on the waiting list at the time of writing.

Africans have limited alternatives for saving money. The value of the currency is declining against the dollar due inflation of more than 16 percent. Investing in dollars helps to hedge against rising inflation and a falling currency. One platform that allows Africans to invest in U.S. stocks is Bamboo which has seen rapid growth in the past two years. Bamboo will go live in Ghana in April 2021. Bamboo has already attracted more than 50,000 users who are waiting to access.

Investors can fund their wallets starting at $20 after they have been registered. You can add funds to your wallet using credit cards, bank transfers, or payment cards. They can then trade ETFs and stocks, and receive market updates. Bamboo's platform is bank-level secured and therefore anyone in Africa can use it as long as they have an authentic Nigerian Bank Verification number. Bamboo's services can also be used by professional investment advisers.

Chaka

There are many reasons that Nigeria is a hub for legitimate investment and business. The film and entertainment industry in Nigeria 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 well-known backers of Chaka, Iyinoluwa Aboyeji, said to TechCrunch that the country's progressive trends will ultimately open doors to a whole new set of investors. In addition to the Aboyeji investment, Chaka has also secured seed-funds from the Microtraction fund which is managed by Y Combinator CEO Michael Seibel.

projects seeking funding has been more interested in African investments due to the deteriorating relationship between the US and China. The trade war, and growing anti-China sentiment have made it more appealing for investors to look beyond the US to invest in African companies. The African continent is home to large, emerging economies, but most markets are too small to support venture-sized enterprises. The owners of businesses in Africa should be prepared to adopt an expansion mindset and lock in a coherent expansion narrative.

The Central Securities Clearing System oversees the Nigerian Stock Exchange, making it a safe and secure platform to invest in African stocks. Chaka is free to join and you'll be paid a 0.5 percent commission on every trade. Cash withdrawals that are available take up to 12 hours. In the case of withdrawals of shares sold, on the other hand can take up to three days. In both cases the cash paid for the sold shares is settled locally.

Rise

The increase in investors willing to invest in Africa is good news for Africa. Its economy is stable and its governance is sound, which attracts international investors. This growth has raised the standard of living in Africa. However, Africa is still a risky place to invest therefore investors must be cautious and do their homework. There are plenty of opportunities to invest in Africa. However Africa must improve its offerings to attract foreign capital. In the coming years, African governments should work to create more business-friendly environments and improve the business climate.

The United States is more willing to invest in the economies of Africa through foreign direct investment. U.S. governments assisted Senegal in advancing a major health financing facility. The U.S. government also helped get investment in the latest technologies in Africa and assisted pharmacies in Kenya and Nigeria supply high-quality medications. This investment can create jobs and create long-term partnerships between the U.S.A and Africa.

While there are numerous opportunities to invest in the African market for stocks It is essential to be aware of the market and perform due diligence to ensure you don't lose money. If you're a smaller investor, it's recommended to invest in exchange-traded funds (ETFs) which are funds that track an extensive range of Sub-Saharan African companies. For U.S. investors, American depositary receipts (ADRs) are a simple method of trading African stocks in the U.S. stock market.

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