Investors should make projects attractive to attract funds — Report

Experts have charged African businesses to show strong capital efficiency and attractive value propositions in order to attract funds from the global financial market.


In a report – Venture Capital in Africa: Trends to watch out for in 2024 and beyond – the experts noted that startups will be able to successfully raise the necessary funding, if they have solid business strategies and focus on finding solutions to critical issues.



The report, stated: “Traditionally, a lot of African startups have looked outside of the continent for funding. According to recent data, foreign venture capitalists account for approximately 77% of venture funding in Africa. This highlights how important it is to make domestic investments in the tech sector of Africa. Nonetheless, startups will be able to successfully raise the necessary funding if they have solid business strategies and focus on finding solutions to critical issues.

“Investors will be cautious as the global economy slows due to inflationary pressures and tighter monetary policies. African entrepreneurs may find it difficult to raise capital due to investors’ cautious approach and their careful evaluation of risks and returns in the current economic environment.

“In this regard, African businesses need to show strong capital efficiency and attractive value propositions in order to get past funding barriers. Startups need to approach navigating the economic downturn strategically. This demonstrates how important it is to have solid business ideas and address pressing problems in order to attract investors searching for the best possible investment opportunities.”