Greentec Capital announces scaling-up investment activities in Africa on CNBC Africa's “Closing Bell”
Frankfurt (Germany) and Kigali (Rwanda), October 2018. .
GreenTec Capital plans to scale the number of African investments through the opening of several local offices over the course of the next year. In a recent interview on CNBC’s “Closing Bell East Africa,” CEO Erick Yong elaborated on GreenTec’s strategy and motivation to scale its operations in Africa.
With the scale and diversity of the African continent and a developing theme of local entrepreneurial development, the challenge of developing African start-ups into sustainable companies has never been so current. The many and growing number of African incubators and accelerators have populated the African start-up scene with multitudes of young companies, many of which will not last longer than three years.
Addressing this weak point, increasing the longevity, sustainability, and scalability of those companies requires an adjustment in terms of the kind of investment support. On this background GreenTec Capital has developed its own investment Approach.
With a portfolio of 20 companies, spread across 9 African countries, GreenTec plans to expand its operations to supporting 50 investments annually from 2023 onwards, through a strategy of developing local offices. Today, GreenTec is present in South Africa, Nigeria, Ethiopia and will soon be active Ivory-Coast, GreenTec opens the door to VC operations with high development impact.
The interview presented the opportunity to elaborate on the many specific features of investing in Africa which have driven the development of GreenTec’s investment model. Namely the fundamental challenge of the “Valley of Death” stage for start-ups, challenges of developing value chains, the variety of local economic ecosystems in each country, and opportunities for entrepreneurs to align their businesses with the National Development Plans of their home counties.
You can view the video here on our page or on CNBC’s Africa’s page.