Digital crowdfunding in Africa

News

Rupert family fund oversubscribed; applications temporarily suspended

Applications for the Rupert family’s R1 billion small business fund, The Sukuma Relief Programme, which opened on Friday, have temporarily been suspended.

EOH Exco chop salaries by 25%; ask staff to cut by 20%

Technology group EOH narrowed its first half loss per share from continuing operations, while group revenue fell 14 per cent and costs rose. EOH CFO, Megan Pydigadu joins CNBC Africa for more.

SA launches green fund to drive investment into SMMEs

R488 million – that’s how much the Green Outcomes Fund has set aside for fund managers to increase investment in green Small, Medium and Micro-sized Enterprises. To discuss the fund - the first of its kind, CNBC Africa is joined by Tine Fisker Henriksen: Innovative Finance Lead, UCT GSB Bertha Centre and Mark van Wyk: Head of Unlisted Investments, Mergence Investment Managers.

Securing funding is one of the biggest challenges for any start-up company, as banks are traditionally cautious about businesses without proven track records. Seeing this gap in Africa, Edwige Boum founded an online peer to peer crowdfunding platform called Afrikstart. The platform provides easy and affordable access to capital across Sub-Saharan African to entrepreneurs.

Entrepreneurs who seek funding for their businesses have to pitch their projects to an audience of potential backers.

“The campaigns must include a clear description of why they want to raise the money and what they are going to do with it, a video, and images. Entrepreneurs then propose a set of ‘rewards’ for different pledge levels, a funding goal, and a timeframe to raise funds,” says Boum.

Afrikstart then curates the projects and retains a small fee if the crowdfunding campaign reaches its funding goal.

There were 57 active crowdfunding platforms headquartered and operating in Africa in 2015 of which South Africa had 21 portals and Nigeria had nine.

“The total crowdfunding market for Africa-based platforms is estimated at 32.3 million dollars in 2015, which is less than 0.1 per cent of the global crowdfunding activity,” says Boum.

Crowdfunding platforms in South Africa raised about 30.8 million dollars following Egypt with 842,000 dollars raised, then Nigeria with 314,445 dollars raised in 2015.

“Money raised by Africa-based crowdfunding portals was primarily directed to fund start-ups and SMEs by 17.7 million dollars, real estate crowd invested projects by 13.6 million dollars, travel crowdfunded trips by 319,434 dollars, and to donate to social causes and charity projects by 307,860 dollars,” she says.

This project prioritises to fund start-ups and early-stage businesses, more especially young women entrepreneurs from various sectors and industries.

- Advertisement -
- Advertisement -

Featured

Rand hits record low, goes over 19 to dollar as Fitch downgrades SA further into junk status

Last Friday Moody’s, the last rating agency to rate South Africa investment grade, cut South Africa’s sovereign credit rating to junk in line with economists’ forecast. Today Fitch further downgraded the country sending the rand plunging over 19 rand to the dollar. Below it gives its reasons...

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

Sarb guides banks to put dividends, bonuses on hold

South Africa’s Reserve Bank has guided banks to put dividends and executive bonuses on hold to help reduce stress on the banking sector from fighting Covid19. For more on this recommendation as well as other directives to ensure the health of the sector, CNBC Africa is joined by Unathi Kamlana, Head of Policy Statistics and Industry Support at the Prudential Authority.

Nigerian banking index gains but industrial goods sector declines

Investors are taking a keen interest in banking stocks today but the Industrial goods sector is facing a steep decline. Dare Fajimolu, Chief Research Officer at Blue Vertex joins CNBC Africa for a recap of today’s trade.

Nigeria to tap into its sovereign wealth fund to fight COVID-19 crisis

Nigeria plans to withdraw $150 million from its sovereign wealth fund as part of its fiscal stimulus measures in response to the COVID-19 outbreak. Michael Ango, the Associate Director; Tax Advisory and Regulatory Services at Andersen Tax joins CNBC Africa to assess Nigeria's response to the pandemic.

South African COVID-19 Tourism Relief Fund open for applications

In a bid to mitigate the impact of COVID-19 on South Africa’s tourism sector, the Department of Tourism is urging eligible small, micro and medium-sized enterprises (SMMEs) to apply for a share of the R200 million Tourism Relief Fund.
- Advertisement -

More Articles Like This

- Advertisement -