Investor protection efforts by African governments

 

 

In last week’s blog we discussed the next African industries poised to take off. But the classic economic equation dictates that for production to take place there should be financing capital and labor capital. Here we discuss the investment component, and how it can be used to address the social challenges Africa has.

 

“Investors often lament the absence of clear property ownership rights and fear that their capital will not be justly protected. A lot of African countries have developed strong constitutions that target this specific problem.”

 

Investors often lament the absence of clear property ownership rights and fear that their capital will not be justly protected. A lot of African countries have developed strong constitutions that target this specific problem. Rwanda is a model example of this, as it strives to build a culture devoid of corruption. Ghana, Kenya and Ethiopia among many others have similarly developed institutions centered on the principles of good governance.

 

The advent of the digital age has also enabled the African continent to develop services at par with international standards. Investors can derive confidence that their capital is being used optimally through means previously unavailable. There are multiple ways with which to invest as a result. Most countries have a Stock Exchange, with the Johannesburg Stock Exchange remaining the largest.

 

By the same token, there are many established funds with a specific focus on Africa and also offer targeted funds for specific industry one might be interested in. Venture capital is also taking off as financiers see potential for Africa’s innovations.

 

This has paved the way for development of policies ensuring growth of business as evidenced by the record number of startups now being formed all over the continent.

We here at wisinomad are especially enthralled by entrepreneurs who are seeking to solve challenges all over the continent. Two such companies, Poa! and Modisar have been featured on the wisinomad Dialogue Series. We are committed to providing a community for social entrepreneurs who want to work in Africa in an immersive program designed with them in mind.

 

To learn more about wisinomad, visit www.wisinomad.com and send in your application.

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