5 Reasons Why Crowdfunding is the Answer To Propel African Innovation & Development

Summary - for the quick read...

1. Innovative Solutions For Africa’s Challenges Are In Abundant Supply: African entrepreneurs are already addressing challenges with transformative ideas, like Teesas in Nigeria utilising technology for accessible learning.
2. Limited Access to Capital is Handicapping African Development: Traditional funding mechanisms result in a $140bn gap for African SMEs and startups, and the loss of talent and capital to opportunities overseas further hampers progress.
3. Crowdfunding: A Community-Focused Approach to Development: Crowdfunding, accessible to all, emerges as a solution, celebrating the shared belief in African innovation and building an Africa we want to see.
4. Connecting Africans to Invest in African Ideas: Crowdfunding's strength lies in connecting local communities and the vast African diaspora to stay invested and connected to building Africa's future.
5. Powering an African-Enabled and African-led, African future through equity crowdfunding: The African diaspora, the biggest financiers of African development with $95bn in annual remittances, can power an African-led, African future whilst advancing their own personal wealth through crowdfunding. A Future We Can Be Proud of: Crowdfunding goes beyond remittances powering the long-term development of the continent. The solution: AfriVest, connecting Africans to invest in African ideas through equity crowdfunding. Note: Investments carry risks, and professional advice is recommended. Contact Information: AfriVest for more information, and feel free to reach out at [email protected] .

The Longer Read...

In the rich tapestry of Africa's entrepreneurial landscape, innovation has emerged as the driving force to address the ever-present?environmental, social, and economic challenges . From sustainable agriculture to?renewable energy solutions , African SMEs and startup founders are at the forefront of devising impactful solutions that have the potential to transform the continent. However, their journey is handicapped by a monumental roadblock – funding.

Here’s 5 key points on the challenge and how crowdfunding can unlock the development of the continent…

1. Innovative Solutions For Africa’s Challenges Are In Abundant Supply

In the face of adversity, Africa's challenges have become the catalyst to inspire transformative ideas and innovation. Entrepreneurs on the ground are not just problem-solvers; they are dreamers crafting solutions for the Africa they want to see. Through their unwavering spirit, they are solving for the complexities of climate change, social inequities, and faulty economies. For example,?Teesas in Nigeria ?is using technology to ensure learning is available to everyone who seeks it without any barriers.

2. Limited Access to Capital is Handicapping African Development

However, the impact of these groundbreaking solutions is often muted due to the stifling constraints of funding via traditional funding mechanisms (VC, banks, etc.) - the London Stock Exchange Group estimates there is a?US$140bn funding gap for African SMEs ! In addition to the challenges posed by the loss of economic and knowledge capital as?Africans seek opportunities overseas? (a.k.a ‘Japa’). Thus, many brilliant ideas remain dormant. The lack of financial support not only stunts their growth but also?hampers the positive change they could bring to their communities .

3. Crowdfunding: A Community-Focused Approach to Development

How may we solve for this lack of funding to power these innovative solutions you may ask? Enter crowdfunding [*queue applause*]. Crowdfunding simply put is the practice of funding a project or venture by raising money from a large number of people - this can range from equity-based crowdfunding, where project funders (investors) receive equity ownership in the business in return for their cash; to donation-based crowdfunding where project funders donate a small amount to see a project they care about succeed. (Note my references to crowdfunding moving forward reference equity-based crowdfunding).?

The good news, the premise of crowdfunding is based on being accessible to everyone! Not just High Net Worth Individuals (HNWI) or big banks and Venture Capital (VC). Venture funding for the people, by the people! For the continent, this is a celebration of the shared belief in the potential of African innovation and building the African future we want to see.?

4. Connecting Africans to Invest in African Ideas

Crowdfunding's strength for African development lies in its ability to embrace not only local communities but also the vast African diaspora. In an era where technology seamlessly bridges distances allowing people to be anywhere at anytime, crowdfunding invites the African diaspora to actively participate in shaping the destiny of their motherland.?

5. Powering an African-Enabled and African-led, African future through equity crowdfunding

The African Diaspora is already the biggest financier of the continent’s development with?over $95bn sent to the continent annually in remittances , larger than Foreign Direct Investment (FDI) and international assistance. However, remittances whilst valuable have limited potential for growing the personal wealth of the remitter, and have?limited spillover impacts in the wider community .

Through the structured avenues which crowdfunding provides this can permit Africans and the diaspora to further increase* their (already growing ) incomes' -?Forbes ?reported Crowdfunding delivers a 40% return to investors - whilst powering African ideas to deliver positive impact back home.

To conclude, as?diasporians' incomes rise?and the challenges and the need for funding on the continent grow, the solution is blindingly obvious. Connecting Africans to invest in African ideas powering an African-led and African-enabled, African future through equity crowdfunding.

If you would like to understand more about what we are building @ AfriVest. check out our website and feel free to drop me a mail @?[email protected] ?if you have any questions, queries or anything else!

*Note: investments may go up or down, your capital is at risk. For investment advice please seek professional consultation and advice.