Monday, August 20, 2007

Why should Venture Capitalists invest in SME's in Africa?

Africa is at the dawn of a new renaissance, if you want a high return on your capital, you should include Africa in your portfolio. I'm not only going to invest in Africa because I'm African, but because this is the right time to do so. In 15 years it will be too late, look at India and China, investors are coming and paying top capital for resources and businesses to find out that maybe they missed the boat years ago. Obviously, Africa being an emerging market has risks so...caveat emptor!

I believe Africa needs to revive and grow the informal sector, the informal sector is where the real wealth is in Africa. I'm involved with capitalizing a Meso Capital Cheetah fund for the SME market. The informal market is important to grow so people don't overcrowd the cities, and Africans can sustain themselves rather then importing subsidized rice from somewhere in the United States heartland.

Whether you invest in formal, or informal markets the African market should be in your portfolio!

Here are some Venture Capital firms investing in Africa.

Frontier Capital
African Agricultural Capital
New Ventures
Thousand Hills Venture Fund
Renaissance Capital
Origins Venture Capital Fund for Africa

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