There are numerous reasons to invest, however investors must be aware that Africa can test their patience. The African markets are unstable and time horizons may not always work. Even the most sophisticated companies might need to adjust their business plans, as Nestle did in 21 African countries in the last year. Many countries also have deficits. These gaps must be filled by bold and resourceful investors who can bring greater prosperity to Africa.

The $71 million investment by TLcom Capital TIDE Africa Fund

The latest venture by TLcom Capital was closed at $71 million. The predecessor fund was closed in January of last year. Five million dollars were contributed by Sango Capital, Bio, CDC Group and TLcom. The first fund was invested in tech companies in Kenya and Nigeria. TIDE Africa II will focus on fintech companies in East Africa. The investment firm also has offices in Nigeria and Kenya. The portfolio of TLcom comprises Twiga Foods, Andela, uLesson, and Kobo360. Each company is worth $500,000 and $10 million.

TLcom, founded in Nairobi, is a VC company is home to more than $200 million under control. Omobola Johnson is the firm's Managing Partners. He has been instrumental in helping establish more than a dozen tech companies in Africa, including Twiga Foods, and a logistical trucking business. The team of the investment firm includes 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, with a focus on Series A and II rounds. The fund will be primarily focused on Anglophone Africa but it plans to invest in Eastern and Southern African countries. 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 company that invests in philanthropy, hopes to invest $100-$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 company invests in consumer internet, entrepreneurship, financial inclusion, transparency in government property rights, as well as businesses that have social impact.

The Omidyar Network's TEEP Fund makes investments that are designed to increase access to government information. Its mission is to identify non-profit organizations that make use of technology to build public information portals and tools for citizens. The network believes open access to government information improves public knowledge about government processes, and can lead to an 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

If you're planning to raise funds for your African startup, it's best to consider a firm with an African-centric focus. One of these companies is TLcom Capital, a fund management firm based in London. Its African investments have attracted the attention of angel investors, and the team has raised funds in Nigeria and Kenya. TLcom recently announced the launch of a new $71 million fund that intends to invest in 12 startups prior to them reaching revenue.

The appeal of Africa venture capital is being recognized by the capital markets. Private investors are becoming increasingly aware of the potential for growth in Africa and aren't restricted by institutional investors. This means that raising money has never been simpler. Raise helps businesses to close deals in a fraction of the time and is devoid of institutional restrictions. There's no perfect method to raise money for African investors.

The first step is to learn the mindset of investors regarding African investments. While YC hype is appealing to investors of all kinds however, it is important to take a look beyond the Silicon Valley giant and Agenda 2063 of the African Union. As a result, African entrepreneurs are seeking the YC signal before they approach US investors. A Tunisian venture capitalist Kyane Kassiri recently spoke about the importance of the YC sign when raising funds for African investors.

GetEquity

GetEquity, an investment platform in Nigeria, was founded in July 2021. It aims to democratize the process of funding startups in Africa. It hopes to make funding African startups accessible to the common man and provide top capital raising tools for any startup. It has already helped numerous startups to raise more than $150,000 from diverse investors. In addition, it also provides a secondary market that allows investors to buy other investors' tokens.

Like equity crowdfunding investing in companies in the early stages is a very exclusive business that is typically only available to the top individual angel investors and capital institutions as well as syndicates. It is rarely available to family and friends. However, new startups are trying to break this privileged system by democratizing access to startup funding in Africa. The platform is accessible on iOS and Android devices and is completely free to use.

With the introduction of its wallet that is based on blockchain technology, GetEquity is making startup investing in Africa feasible for all investors. Investors can invest as low as $10 in African startups through crypto funds. Although this might seem like an insignificant amount in comparison to traditional equity funding however, it's an enormous amount of money. With the recent departure of Paystack by Spark Capital, GetEquity has transformed into a robust ecosystem for investors willing to invest in Africa.

Bamboo

The first obstacle for Bamboo is convincing young Africans to invest on the platform. At present investors in Africa were restricted to a handful of options which included foreign direct investments (FDI) as well as crowdfunding and traditional finance companies. In fact, only about 1/3 of the population has invested in any platform. But now the company is expanding into other regions of Africa with plans to launch in Ghana in April 2021. At the time of writing, more than 50,000 Ghanaians have signed up for the waitlist.

Africans do not have many options to save money. The currency is losing value against the dollar due to inflation of nearly 16%. The investment in dollars can help protect against inflation and a falling currency. Bamboo is a platform that has seen rapid growth over the past two years, is a platform that allows Africans invest in U.S. stock options. Bamboo is set to launch in Ghana in April 2021 and already has over 50,000 people waiting to be able to access.

Investors can fund their accounts starting at $20 after they have been registered. You can add funds to your wallet using credit cards, bank transfers, or credit cards. After that, they can exchange ETFs and stocks, and receive regular market updates. Bamboo's platform is bank-level secure which means that anyone in Africa can use it provided they have an authentic Nigerian Bank Verification number. Bamboo's services can also be utilized by professional investment advisers.

Chaka

There are a few reasons to consider why Nigeria is a hotspot for legitimate investment and business. Its film and entertainment industry is among the continent's biggest and its growing fintech industry has led to an explosion in startup formation and VC activity. One of the most well-known backers of Chaka, Iyinoluwa Aboyeji, business funding said to TechCrunch that the country's modern changes will eventually open the doors to a new category of investors looking for projects to fund. Chaka also received seed-funds from Microtraction which is managed by Michael Seibel, CEO of Y Combinator.

The degrading relationship between the US and China has accelerated Beijing's interest in African investments. The trade war, and rising anti-China sentiment, have made it more appealing for investors to look beyond the US to invest in African companies. Although Africa has a number of developing economies, most markets are not large enough for venture-sized companies. The owners of businesses in Africa should be prepared to adopt an expansionist mindset and be locked 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 receive a 0.5% commission for every trade. Cash withdrawals that are available take up to 12 hours. On the other hand, withdrawals of sold shares can take up to three working days. In both cases, the cash for sold shares is settled locally.

Rise

Africa is receiving positive news due to the increasing number of investors willing to invest. Its economy is stable , and its governance is sound, which draws international investors. This growth has raised the standard of living in Africa. However, Africa is still a risky investment area and investors should be cautious and exercise due diligence. There are plenty of opportunities for investment in Africa, investors looking for projects to fund but the continent must make improvements to attract foreign capital. African governments must collaborate to create a more hospitable environment for business and enhance the business climate in the coming years.

The United States is increasingly willing to help African economies with foreign direct investment. In 2013, U.S. governments helped in the development of a major healthcare financing facility in Senegal. The U.S. government also helped get investment in the latest technologies in Africa and also assisted pharmacies in Kenya and Nigeria provide high-quality medication. Such investment can create jobs and help build a long-term partnership between the U.S. and Africa.

While there are several opportunities available in the African stock market it is crucial to know the market and do due diligence to ensure that you don't lose money. If you're a small investor it is a good idea to invest in exchange-traded fund (ETFs), which tracks a wide range of Sub-Saharan African businesses. For U.S. investors, American depositary receipts (ADRs) are a simple way to trade African stocks on the U.S. stock market.