Give African Entrepreneurs the Attention They Deserve

Published: 13/11/2024

On October 24, 2024, Ondernemers voor Ondernemers (OVO), in collaboration with several partners, hosted a conference titled “Early-Stage Investments in Africa: Are African Businesses Overlooked as Investment Opportunities?” The focus was on the need for stronger collaboration between dynamic young African entrepreneurs and visionary investors.

The conference took place at the ULB campus, organized in partnership with the Madiba Club, the Brussels Africa Hub, the CBL-ACP Chamber of Commerce, and OVO. The president of the Madiba Club, an association of young Africans studying at Solvay Brussels School of Economics and Management, was the first speaker. 

He emphasized one of his club’s goals: raising awareness among students, decision-makers, and investors of the tremendous potential and opportunities that Africa offers. The next speaker, already convinced of the topic, was Loïc de Cannière, founder and manager of Incofin, an independent impact fund manager focused on emerging markets, emphasizing financial inclusion, the agrifood value chain, and access to drinking water. His organization has invested over 2.7 billion euros through equity and debt financing in more than 320 companies, financial institutions, and SMEs in Africa, South America, and Asia. Mr. de Cannière is therefore well-acquainted with the field. 

“The challenges are immense: each year, for the next 30 years, 20 million young Africans will enter the job market. This means an urgent need for investment funds. At Incofin, we receive many requests—my inbox is full—but unfortunately, we can’t respond to all. More venture capital and early-stage funds are needed. Another challenge is integrating technology and digitization into traditional African businesses. This would offer many advantages but remains a difficult task.”

 

Financial Challenges and Solutions

The conference aimed to highlight both the challenges African SMEs and startups face in seeking funding and to provide insights into financing opportunities for African entrepreneurs. The next speaker, Tino Chibebe, a member of OVO's investment committee, originally from Zimbabwe and educated in Belgium, is the author of The Black Opportunity. In his book and during his talk, he boldly stated that African entrepreneurs are excluded from the venture capital space. To change this, they need a seat at the table, especially for members of the African diaspora in Belgium. “Give them the attention and investments they deserve. Invest and build relationships with people already solving issues. Belgian investors, but especially African business angel networks, know the local environment and people.”

 

African Rating Agencies and Investor Education

Other speakers, such as Joanna Kambuzi, founder/CEO of the Emerge fund in Malawi, and communications specialist Eniola Harrison, a member of OVO’s investment committee, highlighted recurring issues while suggesting solutions. The familiar “gap” was mentioned repeatedly: a real gap exists between microfinancing and credit for (very) large companies. Medium-sized companies often fall between two stools and face very high-interest rates. Joanna Kambuzi explained, “Interest rates in Malawi can reach 25%, which obviously greatly limits financing options. Through my collaboration with OVO, I train businesses to pitch their projects to funders. Additionally, OVO’s credit interest rate is only 7%, which is much more accessible.” Finally, Eniola Harrison highlighted certain perceptions that complicate the work of African entrepreneurs. “Especially during election periods, African countries are not always portrayed positively in the media. Coverage of Boko Haram and political corruption doesn’t help. It creates the impression that Africa is too risky for investment, leading to higher risk premiums, meaning higher interest rates. That’s why I find investor education so important: teaching potential investors to understand the risks and opportunities in local markets and encouraging them to hire local people.”

The conference concluded with a reception.

 

 

Article written by Marc Van de Velde
Call for Coaches Uganda 2025
OVO calls, events & travels
Call for Coaches Uganda 2025
13/11/2024
Call for Entrepreneurs Uganda 2025
OVO calls, events & travels
Call for Entrepreneurs Uganda 2025
28/10/2024
OVO promotes agroforestry in Senegal
Inspiring testimonials
OVO promotes agroforestry in Senegal
16/10/2024

Didn't find what you were looking for?

A question about a project or our operations? You wish to work with us? Become a volunteer? Take a look at our frequently asked questions or ask us your question without any obligation.