10 Easy Ways To Investors Willing To Invest In Africa Without Even Thinking About It

There are many reasons to invest, however investors should be aware that Africa is a place that tests their patience. The African markets can be unstable and time horizons may not always be a good idea. Even sophisticated businesses may need to adjust their business plans, like Nestle did in 21 African countries last year. Many countries also face deficits. These gaps will need to be filled by bold and resourceful investors who can bring greater 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 fund's predecessor was shut down in January of last year. Five million dollars were donated by Sango Capital, Bio, CDC Group and TLcom. The first fund invested in tech companies in Kenya and Nigeria. TIDE Africa II will focus on fintech companies located in East Africa. The investment firm has offices in Kenya and Nigeria. The portfolio of TLcom comprises Twiga Foods, Andela, uLesson, and Kobo360. The investment firm earns between $5000 and $10 million in each of the companies.

TLcom, founded in Nairobi, is a VC company, has more than $200 million under management. Omobola Johnson is the company's Managing Partner. He has been instrumental in helping establish more than a dozen tech-related companies across the continent, including Twiga Foods, and a trucking logistics business. 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 that invests in growth tech companies in SSA. It will invest between $500,000 and $10 million in companies that are at the beginning of their development and will focus on Series A and II rounds. Although the fund will be focusing 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 charitable investment firm, is aiming to invest between $100 and $200 million in India over the course of 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. In India, the firm invests in entrepreneurship, consumer internet financial inclusion, government transparency, property rights, and firms with social impact.

The Omidyar Network's TEEP Fund invests in projects that improve access to government information. Its mission is to identify nonprofits using technology to develop public information portals and tools for citizens. The network believes that having open access to government information improves public awareness of government processes, and in turn results in a more active society that holds government officials accountable. Imaginable Futures will use the funds to invest in for-profit and non-profit organizations that are focused on healthcare and education.

Raise

If you're planning to raise funds for your African startup, it's best to choose a company that has an African-centric focus. One such company is TLcom Capital, a fund management company based in London. Its African investments have caught the attention of angel investors, and the company has 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 appeal of Africa venture capital is being recognized by the capital markets. More private investors are recognizing the potential of Africa to grow, and don't have the same restrictions as institutional investors. This means that raising money has never been more simple. Raise helps businesses close deals in half the time, and is free from the restrictions of institutions. There is no single method to raise money for African investors.

Understanding how investors perceive African investments is the first step. Although many investors are attracted to YC hype, it's vital to think beyond this Silicon Valley giant and the Agenda 2063 of the African Union. African companies are now searching for the YC signal to approach US investors. A Tunisian venture capitalist Kyane Kassiri recently talked about the importance of the YC sign when raising funds for African investors.

GetEquity

It was founded in July 2021. GetEquity is a Nigeria-based investment platform aimed to make it easier for startups to access funding in Africa. It wants to make the process of financing African startups accessible to the common man and provide top capital raising tools for any startup. It has already helped numerous startups get more than $150,000 in funding from investors of all kinds. It also has secondary markets for investors to buy tokens from other investors.

Contrary to equity crowdfunding investing in early-stage companies is a highly exclusive venture which is generally only accessible to elite individual capital institutions and angel investors as well as syndicates. It is rarely available to friends and family. However, new startups are trying to change this privilege by opening up access to startup capital in Africa. It is available on both Android and iOS devices. It is free to use.

With the launch of its wallet that is based on blockchain technology, GetEquity is making startup investing in Africa an option for common investors. With the help of crypto funds, investors can invest in African startups for as little as $10. While this may seem an insignificant amount as compared to traditional equity financing, it is still an enormous amount of money. In the wake of the recent demise of Paystack by Spark Capital, GetEquity has transformed into a robust ecosystem for investors willing to invest in Africa.

Bamboo

The first hurdle for Bamboo is to persuade young Africans to invest in the platform. Investors in Africa had few options before the present: crowdfunding, foreign direct investment (FDI) as well as legacy finance companies. In fact, only about three-quarters of the population had invested in any platform. The company is now saying it is expanding into other African countries, and plans to launch in Ghana by the end of April 2021. More than 50,000 Ghanaians are waiting to be added to the waitlist as of this writing.

Africans do not have many options for saving money. With the rate of inflation reaching 16 percent the currency is declining against the dollar. The investment in dollars can help protect against inflation and a falling currency. business investors in south africa is a platform that has seen rapid growth in the past two years, is one platform that lets Africans to invest in U.S. stock options. Bamboo will go live in Ghana in April 2021. It has already surpassed 100,000 users who are waiting to get access.

Once they have registered, investors can get their wallets funded with as little as $20. You can add funds to your wallet using credit cards, bank transfers or payment cards. Afterwards, they can trade stocks and ETFs, and receive regular market updates. Bamboo's platform is secured at the bank level so anyone from Africa can use it provided they have a valid Nigerian Bank Verification number. Bamboo's services can also be used by professional investment advisers.

Chaka

Nigeria is a major hub for legitimate business and investment. The film and entertainment industry is among the top in the world, and the country's growing fintech industry has resulted in a boom in startup formation and VC activity. One of the most well-known backers of Chaka, Iyinoluwa Aboyeji, told TechCrunch that the country's modern trends will ultimately open doors to a new category of investors. In addition to the investment of Aboyeji, Chaka has also secured seed-funds from the Microtraction fund which is headed by Y Combinator CEO Michael Seibel.

The deteriorating US-China relationship has increased Beijing's interest in African investments. The trade war, 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 big enough for venture-sized firms. African entrepreneurs should be prepared to adopt an expansion mindset and craft a coherent expansion story.

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 the 0.5 percent commission per trade. Cash withdrawals that are available take up to 12 hours. Withdrawals of sold shares on the other hand, can take up to three days. In both cases the cash paid for the sold shares is settled locally.





Rise

Africa is receiving positive news due to the rise in investors willing to invest. The country's economy is stable and its governance is sound, which is a major draw for foreign investors. This has led to a rise in the standard of living in Africa. Africa is still a risky investment spot. Investors should be cautious and conduct their own study. There are numerous opportunities to invest in Africa however, the continent needs to improve its infrastructure to attract foreign capital. In the coming years, African governments should work to create more business-friendly environments and improve their business climate.

The United States is increasingly willing to aid African economies with foreign direct investment. U.S. governments assisted Senegal in the development of a major healthcare financing facility. The U.S. government also supported investment in new technology in Africa and helped pharmacies in Nigeria and Kenya supply high-quality medications. This investment could create jobs and foster long-term partnerships between the U.S.A and Africa.

There are many opportunities in the African stock exchange. However, it's important to understand the market and perform your due diligence to avoid losing money. If you're a smaller investor, you should invest in exchange-traded funds (ETFs) which are funds that track a wide basket of Sub-Saharan African companies. For U.S. investors, American depositary receipts (ADRs) are a simple method of trading African stocks on the U.S. stock market.