- Deal Source Africa to attach African companies on-line with traders, transaction advisors and Impression Funds.
- Skilled transaction advisors shall be related with companies to offer skilled assist alongside their fundraising journey.
- In the course of the pilot section, this system has enabled 94 companies to attach with 18 traders in deal rooms.
A brand new programme in search of to attach African companies on-line with traders, transaction advisors and Impression Funds has been unveiled in Ghana on the West Africa Deal summit. The programme, Deal Supply Africa, includes a digital platform that connects traders with companies, in-person and digital deal rooms the place companies can meet traders.
Deal Supply Africa seeks to bridge the $331 billion funding hole for African SMEs. High on track shall be SMEs with excessive progress potential and providing options that assist meet their enterprise wants.
It additionally contains Impression Fund showcases the place traders can meet African enterprise funds and different native capital suppliers.
Deal Supply Africa to counsel SMEs on fundraising
Companies and traders can signal as much as the platform to entry the programme, which was developed with funding from the Analysis and Innovation Programs for Africa (RISA) Fund of UKAid and piloted in 2022.
“Deal Supply Africa has the potential to change into a major enabler of financing for companies and native capital suppliers throughout Africa. We’re excited to collaborate with IIGh on this initiative and to see it develop throughout Africa by means of our companions in different international locations. Africa-wide platforms with robust native companions are important to fill the financing hole dealing with our companies,” Nigeria Nationwide Advisory Board for Impression Investing (Nigeria NABII) CEO Etemore Glover stated
Via the platform, skilled transaction advisors will join with companies to offer skilled assist alongside their fundraising journey. The platform’s Deal Officers facilitate connections with traders.
“The analysis is evident that rising SMEs can considerably speed up the achievement of the SDGs and that creating extra environment friendly connections between companies, native funds, and restricted companions might assist deploy extra acceptable affected person capital. Progressive platforms like Deal Supply Africa, constructed and examined with its customers can due to this fact significantly speed up the closing of the SME financing hole,” Impression Investing Ghana CEO Amma Lartey reiterated.
Deal Supply Africa enabling 94 companies
Justina Mensah, who leads the Deal Supply Africa program, shared the successes this system has achieved in the course of the pilot section. The platform has is enabling 94 companies to attach with 18 traders in deal rooms. Moreover, Deal Supply Africa is connecting 45 companies to transaction advisors for one-on-one assist. In the intervening time, three funding offers are about to get finalised.
She known as on African companies who want to increase financing, enterprise funds, and different native capital suppliers to enroll to the platform.
The 2022 Africa Funding Report by Briter Bridges revealed that African startups raised $5.4 billion in complete estimated funding, together with undisclosed rounds, throughout greater than 975 offers final yr.
This was a marginal enhance in comparison with $5.2 billion, unfold over 790 offers, raised in 2021.
Regardless of fintechs taking an enormous hit by the worldwide Enterprise Capital downturn, the sector stays probably the most backed amongst others in Africa.
High international locations by worth of investments
“In 2021, fintechs represented 62 p.c of the overall VC funding raised by startups on the continent. The quantity fell to 38 p.c final yr, rounding up the highest 5: cleantech (15 p.c), logistics (12 p.c), mobility (8 p.c) and e-commerce (5 p.c),” the report acknowledged.
It revealed that Nigeria, Kenya, Egypt and South Africa captured 75 p.c of all funding worth and complete offers.
In keeping with Briter Bridges, the highest international locations by the worth of investments embrace Nigeria (25.4 p.c), Kenya (24.2 p.c), Egypt (18.4 p.c), and South Africa (10.9 p.c). Ecosystems outdoors the highest 4 embrace international locations like Ghana, Uganda, Tanzania, Morocco and Tunisia.