- Deal Source Africa connects African businesses online with investors, transaction advisors and Impact Funds.
- Experienced transaction advisors will link with businesses to provide professional support along their fundraising journey.
- During the pilot phase, the program enabled 94 businesses to connect with 18 investors in deal rooms.
A new programme seeking to connect African businesses online with investors, transaction advisors and Impact Funds has been unveiled in Ghana at the West Africa Deal summit. The programme, Deal Source Africa, comprises a digital platform that connects investors with businesses, in-person and virtual deal rooms where businesses can meet investors.
Deal Source Africa seeks to bridge the $331 billion funding gap for African SMEs. Top on target will be SMEs with high growth potential and offering solutions that help meet their business needs.
It also includes Impact Fund showcases where investors can meet African venture funds and other local capital providers.
Deal Source Africa to counsel SMEs on fundraising
Businesses and investors can sign up for the platform to access the programme. The programme was developed with funding from the Research and Innovation Systems for Africa (RISA) Fund of UKAid and piloted in 2022.
“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 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,” Nigeria National Advisory Board for Impact Investing (Nigeria NABII) CEO Etemore Glover said
Through the platform, experienced transaction advisors will connect with businesses to provide professional support along their fundraising journey. The platform’s Deal Officers facilitate connections with investors.
“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,” Impact Investing Ghana CEO Amma Lartey reiterated.
Deal Source Africa enabling 94 businesses
Justina Mensah, who leads the Deal Source Africa program, shared the successes the program has achieved during the pilot phase. The platform is enabling 94 businesses to connect with 18 investors in deal rooms. Additionally, Deal Source Africa is connecting 45 businesses to transaction advisors for one-on-one support. At the moment, three investment deals are about to get finalised. She called on African businesses who are looking to raise financing, venture funds, and other local capital providers to sign up for the platform.
The 2022 Africa Investment Report by Briter Bridges revealed that African startups raised $5.4 billion in total estimated funding. This included undisclosed rounds, across more than 975 deals last year. This represents a marginal increase compared to $5.2 billion, spread over 790 deals, raised in 2021. Fintech companies taking a big hit by the global Venture Capital downturn. However, the sector remains the most backed among others in Africa.
Top countries by the value of investments
“In 2021, fintech represented 62 per cent of the total VC funding raised by startups on the continent. The number fell to 38 per cent last year, rounding up the top five: cleantech (15 per cent), logistics (12 per cent), mobility (8 per cent) and e-commerce (5 per cent),” the report stated.
It revealed that Nigeria, Kenya, Egypt and South Africa captured 75 per cent of all investment value and total deals.
According to Briter Bridges, the top countries by the value of investments include Nigeria (25.4 per cent), Kenya (24.2 per cent), Egypt (18.4 per cent), and South Africa (10.9 per cent). Ecosystems outside the top four include countries like Ghana, Uganda, Tanzania, Morocco and Tunisia.