Despite Its Low Investment Profile, Africa Still Best Place to Invest(Video)
Emma Okonji
In spite of the low investment profile from venture capital investments in Africa, which is put at $0.5 billion yearly, compared to US yearly venture capital investments of $70 billion, China’s $70 billion and Europe’s $20 billion, Africa still remains the best destination for capital venture investment, owing to its relatively low investment risk, venture capitalists have said.
The Founder and Managing Partner of TLcom Venture Capital, Mr. Maurizio Caio, and Senior Partner TLcom Venture Capital, Dr. Omobola Johnson, who appeared on The Morning Show on ARISE TV Tuesday made this disclosure.
While speaking on venture capital funding for up-coming entrepreneurs and technology startups, they said although funding had remained a huge challenge for up-coming businesses in Africa, Venture Capitalists could still find Africa as the best continent to invest their monies because of the low risk involved in investing in Africa, coupled with the pool of talented young entrepreneurs who are technology savvy and are ready to do great exploits in using technology to address specific African challenges.
Johnson who is former Minister of Communications Technology in Nigeria, said TLcom was established about five years ago, but has within a short period of time, invested in up-coming companies in Nigeria and Kenya that have proved to be commercially viable.
According Caio, although money could be a huge challenge for young companies in Africa, they should rather focus on developing their business model into solution that will address specific challenges, than focusing on initial capital, which he said was not the ultimate.
Click on the link to watch the interview
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