Venture Investment in Africa: Where smart money is investing
This article is based off my talk at the Africa Tech Forum; Kigali, Rwanda
Venture investment in Africa has typically categorised by 5 main drivers
- Venture Capital
- Private Equity
- Venture Debt
- Grants
- Crowdfunding
Foreign Direct Investment flow to Africa as reported by UNCTAD for 2021 was $ 83 billion representing 5.2% of global foreign direct investment inflow.
Nigeria saw its FDI inflow double to $ 4.8 billion as a result of increase in oil and gas investments. Egypt 5.1 billion, South Africa 42.2 billion and 448 million
Historically Africa has had 4 major investment hotspots, Nigeria, Kenya, South Africa and Egypt. These countries each represent a quadrant of Africa
At GetEquity, we believe there are untapped goldmines that arise among the other 50 countries in Africa. Before we get to those, we need to look at what factors make these countries particularly ripe for investment
- Population
- GDP per capita
- Government stability
- Proximity to Hotpot countries (Geography)
- Growth rate
- Inflation
Based on this data, We derived a Matrix Factor of 10 countries we refer to as “Warm countries” we feel smart money should be talking a look at. These are:
Algeria, Rwanda, Botswana, Libya, Tanzania, Angola, Senegal, Morocco, Uganda
One thing we noticed, countries like [South Sudan, Congo, Ivory coast, Cameroon, Togo, Niger, Chad have] form a potential bloc.
It will be interesting to see what the next 4 years…
Feel free to reach out to me on twitter @bigbrutha
