Why Invest in Africa?

Africa is one of the fastest growing economies in the world yet more than 400 million cannot access a bank. Still, the growth of Africa is driven by the small businesses yet 80% of these businesses have no access to capital for growth and expansion. This is a huge problem for Africa’s growth and prosperity because the small businesses can’t borrow money to expand, create jobs and fight poverty.

In Africa, SMEs dominate business, making up 90 percent of firms in rural and urban areas and providing a major employment avenue and contributing to 60% of GDP. SMEs promote entrepreneurial and business skills among communities and are important drivers for achieving key national goals such as poverty alleviation and economic growth. Small businesses in Africa are the true drivers of the economy employing 60% of the productive population.

The developmental impact of SMEs can be enhanced by increasing access to finance and their capacity to manage their strategies and their finances throughout the life cycle – inception, survival, growth, expansion, and maturity. Access to finance for SMEs can add a massive contribution to economic growth in African countries. Without access to financial services, they lack the means to create goods and innovations that are crucial for achieving this growth.

Different institutions provide funding to micro enterprises through to medium-sized enterprises. Different financiers target specific industries, business types or locations. Finding the appropriate financier is important but remains a struggle for smaller  entrepreneurs on the continent.

Invest in Africa  has solution for this and you are part of the solution!

Invest in Africa is an internet marketplace where investors from around the world can lend money directly to entrepreneurs who are doing business in Africa and create growth together with them. That means when the African entrepreneur makes money as a result of your loan, you also also make money.

By promoting business potential in Africa, you trigger positive social impact. Funding speeds up business growth and impacts on the lives of the entrepreneurs,employees, their families and the local community large.

Invest in Africa is your opportunity to help grow small businesses in Africa.

WHY INVEST IN AFRICA?

• Across the continent, economies are growing attracting the attention of foreign investors.
• Currently, six of the world’s 10 fastest growing economies are in Africa.
• The ease of doing business in Africa is improving to the extent that a good number of countries (including South Africa, Ghana, Mauritius and Tunisia) now outperform China, India, Brazil and Russia.
• Despite these promising trends, significant development challenges persist across the African continent especially the current impact of Covid
• Development and expansion of private business activities and partnerships is a key tool to driving sustainable development in Africa.

Drivers of Investments in Africa

• 40% of the global population growth will be in Africa by 2050
• More than 50% of Africa’s population is under 20 years old, making it the world’s youngest continent – in comparison only 28 % of the population of China is under 20 years old
• 500 million Africans are between the age of 18 and 24.
• By 2040, African population forecast is 1.1 billion — more than in China or India

• Consumer expenditure is set to rise from USD 600 billion in 2010 to nearly USD 1 trillion in 2020
• Urban African consumers spend the largest share of their budgets (45%) on food and groceries –more than the average consumer in the BRIC countries
• More than half of all African households are projected to have discretionary income by 2020 – corresponding to almost 130.000 households
• Consumer Industries (retail/wholesale, banking, telecommunication and tourism) in Africa are expected to grow by USD 400 billion by 2020, with apparel, consumer goods and food accounting for $185 billion

• GDP growth for the continent is forecast at 5.4% in 2013 and 5.7% in 2014
• 6 of 10 of the world’s fastest growing economies are currently in Africa
• FDI inflows to Africa have increased by 13.6% and FDI outflows by 55.6% since 2010
• Average annual return on capital of African companies was 65-70% or higher than that of comparable companies in China, India, Indonesia, and Vietnam