October 20

Analysis: Remittance Flows Into Africa Are Fostering Entrepreneurship

Wealthy private investors and a tech-savvy middle class in Africa are helping to bridge early-and-growth stage funding gaps for startups as platforms emerge to help funnel diaspora cash into the continent’s rapidly expanding venture capital market.

Remittance flows into Africa are gradually being retooled to foster entrepreneurship and support innovation on the continent, giving multi-stage startups a much-needed lifeline.

Intermediary platforms such as Pangea Trust and Bantaba (a Sweden-based VC matchmaker) are tipped to help unlock and deploy more diaspora remittances across the full spectrum of startup maturity in Africa to accelerate their growth.

Pangea has developed a one-stop shop for members of the African diaspora community interested in becoming investors – including training in dealmaking.

Photo courtesy of AMISOM Public Information.

Source: TechCabal (link opens in a new window)

innovation, remittances