9 Steps To Investors Willing To Invest In Africa Like A Pro In Under A…

While there are many reasons to invest in Africa, investors should know that the region will test their patience. The African markets are volatile and time horizons don't always work. Even the most sophisticated companies might need to reevaluate their business plans, like Nestle did last year in 21 African countries. Many countries also have deficits. It will require strong and resourceful investors to fill in these gaps and bring greater prosperity to Africans.

TLcom Capital's $71 Million TIDE Africa Fund

The latest venture from TLcom Capital ended at $71 million. The predecessor fund closed in January last year. Five million dollars were donated by Sango Capital, Bio, CDC Group and TLcom. The fund's first investment was in twelve 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 Investors Looking For Entrepreneurs Kenya. The portfolio of TLcom includes Twiga Foods, Andela, uLesson and Kobo360. Each company is worth anywhere from $500,000 and $10 million.

TLcom is an Nairobi-based VC company funding options with more than $200 million under management. Omobola Johnson is the managing partner of the company. He has been instrumental in helping start more than a dozen tech companies in Africa, including Twiga Foods, and a trucking logistics business. The investment firm's team is comprised of 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 to $10 million in early-stage companies and will 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, for instance, has invested in five high-growth digital companies in Kenya.

Omidyar Network'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. Pierre Omidyar, co-founder of eBay established the fund and has invested $113 Million in 35 Indian companies. In India, the firm invests in entrepreneurship, consumer internet, financial inclusion, transparency in government property rights, as well as firms with social impact.

The Omidyar Network's TEEP Fund invests in projects that increase access to government information. Its goal is to identify non-profit organizations that make use of technology to develop public information portals and tools for citizens. The network believes open access to government information increases public knowledge about government processes and leads to a more engaged society that ensures that government officials are accountable. Imaginable Futures will use the funds to invest in non-profit and for-profit organizations that are focused on education and healthcare.

Raise

You should pick a business that is focused on Africa if are looking to raise funds for your African startup. TLcom Capital, a fund manager with its headquarters in London is one of these companies. Its African investments have attracted the attention of angel investors, and the team has raised funds in Nigeria and Kenya. TLcom has announced the launch a new fund of $71 million that will invest in 12 startups before they reach profitability.

The appeal of Africa venture capital is increasingly being acknowledged by the capital market. More private investors are recognizing the potential of Africa for growth and don't have the same restrictions as institutional investors. This means that raising money is much easier than in the past. Raise allows businesses to close deals in half the time and is free of institutional restrictions. However, there isn't a single right method to raise money for African investors.

The first step is to learn how to get investors in south africa Investors looking for entrepreneurs think about African investments. While YC hype appeals to a lot of investors however, it is important to look beyond the Silicon Valley giant and Agenda 2063 of the African Union. As a result, African entrepreneurs are seeking the YC signal before approaching US investors. A Tunisian venture capitalist Kyane Kassiri recently spoke about the importance of the YC signal when seeking funds for African investors.

GetEquity

It was founded in July 2021. GetEquity is an investment platform that is based in Nigeria and investors looking for projects to fund in namibia aimed at democratizing startup funding in Africa. It aims to make financing African startups accessible to all through the provision of capital raising tools and world-class capital to all startups. The platform has already helped startups raise more than $150,000 from a variety of investors. It also offers secondary markets for investors to buy tokens from other investors.

In contrast to equity crowdfunding investing in early-stage companies is a highly privileged activity that is typically only available to the top individual capital institutions and angel investors as well as syndicates. It is not generally accessible to family members or friends. New startups are trying to change this traditional arrangement by making it easier to get capital for startups in Africa. The platform is available on iOS and Android devices and is free to use.

With the launch of its wallet based on blockchain, GetEquity is making startup investing in Africa an option for common investors. Investors can invest as little as $10 in African startups by using crypto funds. Although this might seem like tiny in comparison to traditional equity funding, it is still a significant amount of money. After the recent withdrawal from Paystack by Spark Capital GetEquity has become an excellent platform for African investors who want to invest in Africa.

Bamboo

Bamboo's first hurdle is convincing young Africans to invest in the platform. Investors in Africa had limited options before now: crowdfunding and foreign direct investment (FDI) as well as legacy finance companies. Only about a third have made a purchase on any platform. However 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 waiting list as of this writing.

Africans have few alternatives for saving money. The currency is losing value against the dollar due to an increase of close to 16%. In investing in dollars, you can protect 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 is set to launch in Ghana in April 2021 and already has over 50,000 users waiting for access.

Once registered, investors are able to cash in their wallets using as little as $20. Funding can be made through credit cards, bank transfers and credit cards. Then, they can trade ETFs and stocks, and receive market updates. Bamboo's platform, which is secure at the bank level and safe, it is able to be used by anyone in Africa who has an authentic Nigerian Bank Verification Number. Professional investment advisors may also use Bamboo's services.

Chaka

There are many reasons that Nigeria is a thriving hub for legitimate investment and business. The Nigerian film and entertainment industry is among the biggest in Africa. The growing fintech industry has led to a boom in startup formations and VC activity. One of the most well-known supporters of Chaka, Iyinoluwa Aboyeji, told TechCrunch that the country's progressive changes will eventually open the doors to a new category of investors. Chaka also received seed-funds from Microtraction, which is managed by Michael Seibel, CEO of Y Combinator.

Beijing has been more interested in African investments because of the deteriorating relationship between the US and China. The trade war, Investors Looking For Entrepreneurs as well as growing anti-China sentiment has made it more attractive for investors to look outside of the US to invest in African companies. While Africa is home to a variety of emerging economies, most markets are not large enough for venture-sized firms. African entrepreneurs should be prepared to adopt an expansion mindset and create 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 has a 0.5 percent commission for each trade. Cash withdrawals may take as long as 12 hours. The withdrawal of shares that have been sold however can take as long as three days. Both are handled locally.

Rise

The increase in investors looking for entrepreneurs willing to invest in Africa is good news for Africa. The economy is stable and its governance is sound, which attracts international investors. This has led to a rise in living standards in Africa. However, Africa is still a risky place to invest therefore investors must take care and be careful. There are numerous opportunities to invest in Africa, but the continent needs to improve its infrastructure to attract foreign capital. African governments must collaborate to create a more hospitable environment for business and improve the business climate in the coming years.

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 healthcare financing facility. The U.S. government also supported investment in new technology in Africa and assisted pharmacies in Nigeria and Kenya supply high-quality medications. This investment can create jobs and foster long-term partnerships between the U.S.A and Africa.

There are numerous opportunities available on the African stock exchange. However, it is essential to know the market and conduct your due diligence to avoid losing money. If you're a small investor it is a good option to invest in an exchange-traded fund (ETFs) which track an array of Sub-Saharan African businesses. For U.S. investors, American depositary receipts (ADRs) are a convenient method to trade African stocks on the U.S. stock market.