It will be intriguing to watch in the long term, something substantial that might emerge out of a new initiative that aims to empower African businesses.
This comes in the shape of Deal Source Africa, which is a comprehensive programme that aims to connect African firms with investors and transaction consultants as well as connect African Impact Funds with investors.
At the West Africa Deal Summit, which took place in Accra recently, the project was presented to the public for the first time in its official capacity.
The program’s organisers claim that it will help to close the funding gap of $331 billion for African small and medium-sized enterprises (SMEs), particularly those with significant development potential, by providing solutions that are customised to fit the requirements of their respective businesses.
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In addition, companies and funds can sign up for access to the platform at DealSourceAfrica.co, which was built with assistance from the Research and Innovation Systems for Africa (RISA) Fund of UKAid and was piloted in the year 2022.
According to the people in charge of organising the event, Source Africa is composed of a digital platform that brings together investors and entrepreneurs, in-person and online Deal Rooms in which businesses can meet investors, and Impact Fund Showcases in which investors can meet African venture funds and other local capital providers.
It has also come to light that seasoned transaction advisers are connected with firms in order to provide professional support to them as they proceed along their fundraising journey. The Deal Officers of the site are responsible for facilitating contacts with investors.
The leader of the Deal Source Africa programme, Justina Mensah, discussed the program’s achievements during the pilot phase, including how it helped 94 businesses connect with 18 investors in Deal Rooms and how it helped 45 businesses connect with transaction advisors for one-on-one support, which resulted in 3 investments being finalised. Mensah is also responsible for sharing the program’s successes.
She went on to encourage African companies, venture funds, and other local capital sources, as well as African firms that are looking to raise financing to sign up at https://DealSourceAfrica.com
Remarks from the CEO of Impact Investing Ghana
According to the CEO of Impact Investing Ghana, Amma Lartey, “The research is clear that growing SMEs can significantly accelerate the achievement of the SDGs and that creating more efficient connections between businesses, local funds, and limited partners could help deploy more appropriate patient capital. Innovative platforms like Deal Source Africa, built and tested with its users can therefore greatly accelerate the closing of the SME financing gap.”
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Remarks from the CEO of the Nigeria National Advisory Board for Impact Investing (Nigeria NABII)
While CEO of the Nigeria National Advisory Board for Impact Investing (Nigeria NABII) said Etemore Glover, “Deal Source Africa has the potential to become a significant enabler of financing for businesses and local capital providers across Africa. We are excited to be able
to collaborate with IIGh on this initiative and to see it grow across Africa through our partners in other countries. Africa-wide platforms with strong local partners are essential to fill the financing gap facing our businesses.”