Africa has been fronted as the next economic powerhouse with attractive investment opportunities for any individual or organization that is keen on putting their money into gainful use. Return on investment (ROI) in the continent is high, reaching above global average. The average ROI in Africa is around 15-20% which is relatively higher compared to the global rates of 5-10%, making it the best place to put your money. The information available in the media merely highlights investment opportunities without detailing how exactly to go about your investment plans or whom to contact and whether these are reliable. Here, we give you details into different investment plans to help you better understand, and better choose.
Local Investment Agencies
Local investment agencies need to be at the top of your list of considerations. If you are planning to invest medium to larger amounts ranging from half a million to several million dollars, then local investment agencies are the way to seek. These agencies are normally government-owned or partially owned by the government, like KenInvest in Kenya. There are several benefits accrued from going to local investment agencies such as absolutely free services, up-to-date opportunities, and the fact that the projects that are listed with the local investment agencies are managed by overall reliable and professional companies on the ground.
Crowd Funding and Renowned Online Platforms
Several professional and renowned African investment platforms exist online which allow you to make investment from afar into projects that have undergone careful selection by the leaders and managers of these platforms. The crowd funding site Venture Capital for Africa (VC4A) and Homestrings are examples of crowd funding sites for African investment.
If your investment interests fall under tech and online businesses, then Africa’s tech hubs should be where you cast your gaze. This is where you will find a host of ambitious, talented young African tech entrepreneurs and start-ups, most of whom are regular members of these hubs. When thinking in this line the first ones which come to mind are South Africa’s JoziHub, kLab in Rwanda, Kenya’s iHub, and Co-Creation Hub in Nigeria. However, there are many more tech hubs that are yet to be discovered. The opportunities here are ideal for small to medium-sized investments into tech start-up with a promising future.
African Stock Exchanges
A total of 29 countries in Africa have a national stock exchange but this is an option that the African Diaspora or foreign investors overlook. Although a very limited number of companies are listed in the stock exchange, the dynamics are increasingly changing in fast growing markets with many companies making public offers. Stock exchanges are a lucrative avenue in Africa with some being so popular that it becomes difficult to get access to shares.
Another viable way of linking up with investment opportunities in Africa is to pay a visit to your respective embassy or even the local chamber of commerce of the African country where you wish to invest. The embassy makes one feel at home and provides a perfect opportunity for someone who visits a country for the first time who needs more support regarding investment. However you need to note that you will pay for these services.
Many entrepreneur-start-up accelerators that are run by local companies and institutions are currently in existence. The advantage of accessing promising start-ups through start-up accelerators for investment is that the entrepreneurs that have qualified into the accelerator programme usually went through a rigorous selection process. Hence this proves that these start-ups have great potential. Start-up accelerators are often on the lookout for investors, such as those who sail through the programme and who are able to start-up and grow their businesses. This is an avenue that is ideal for small to medium sized investments.
This is one of the best investment channels yet it is largely ignored. There are various resourceful organizations like the local chambers of commerce, the export promotion councils, as well as industry specific associations like manufacturer, chamber of mines or agricultural association which are often more than glad to help. These institutions have trusted members who largely known to the associations. All you need to do is visit the associations, or possibly attend networking events that they organize and you will find access to many concrete tips, contacts and leads for investment opportunities in a given industry of interest.
The above information acts as a guide of opportunities. All you need is to get out there and do it! All the best in your endeavors of investing within the continent.