Platform Capital enters SA market

Pan-African investment and SMME focus group, Platform Capital, is making its way into South Africa with a new platform aimed at assisting small businesses. Akintoye Akindele, the Executive Chairman at Platform Capital, recently sat down with CNBC Africa to discuss the details of the investment platform and the reasons behind the expansion into the South African market. Platform Capital, known for its regional agnostic approach, is a long-term investor that supports companies of all sizes, ranging from startups to large conglomerates. They provide patient, long-term, and nurturing capital to help entrepreneurs achieve their business goals. The firm goes beyond just providing capital by offering support in market access, talent acquisition, scaling across the continent and the world, and ensuring sustainable business practices that consider climate change and overall sustainability. Platform Capital invests in various instruments such as equity, debts, or compatible and takes a long-term view of up to 15 years to allow ideas to scale up and reach customers. Akindele stressed the importance of patient capital to support the innovation and entrepreneurship activities happening across the continent. Platform Capital has already made six investments in South Africa and plans to make 20 investments annually across various sectors like technology, food value chain, and energy. The goal is to empower people and businesses to compete effectively on both a regional and global scale. Akindele highlighted South Africa's potential as a leading market due to its young population, growth potential, and networking opportunities. While the South African market may seem mature and competitive, Akindele pointed out that there is still an underinvestment in the SMME space. South Africa lags behind in attracting venture capital compared to countries like Nigeria and Egypt. Despite being a developed market, South Africa has not produced as many unicorns (startups valued at over $1 billion) as other African countries. This gap presents a significant opportunity for entrepreneurs seeking capital, know-how, and partnerships. Akindele emphasized the need for collaboration between South African entrepreneurs and those from other African regions to develop solutions that address continental challenges collectively. He noted that startups must design business models that transcend geographical boundaries to scale quickly and effectively. The time for South Africa to capitalize on its innovation and entrepreneurial potential is now, especially in a post-COVID landscape where collaboration and rapid progress are crucial for economic growth.