How to Passively Invest in Africa - a U.S. Lawyer gives the Real Steps

[Music] we'll have two presenters today we ask that you all hold off all of your questions into the q and a session as a matter of fact please send your questions to me in a private chat and i'll present them at the in the q a session as the order that they come in if we don't get to answer your questions today you can send them to us at info global law dot tv and so i'll go ahead and let jimmy get this thing attorney jeremy johnson get this thing started thank you everyone it's gonna be a a great meeting today um one thing i pride myself on is making sure we teach the the real steps oftentimes you go to presentations and they'll just be talking about talking around the issue and claiming they have a certain level of um expertise and insight but we're going to teach you the real steps to invest into africa um africa as you know i mean there's so much opportunity often align africa with the opportunity of a lifetime because whatever whatever your expertise is whatever your skill set is these things can be done in africa and africa is looking for investment if you know the numbers the numbers say africa has many of the fastest growing economies in the world so this is an enormous opportunity for you and we're looking forward to just bringing you significant value and i believe it'll be very informative as i mentioned my name is jeremy johnson um i'm a u.s attorney practicing lawyer in in the us focusing primarily in philadelphia and new york my practice primarily involves u.s trade law and emerging markets in sub-saharan africa i have consulted with provided legal advice to many lawyers and law firms in africa and i began my career as a assistant district attorney in the city of philadelphia district attorney's office taiyo he's a global development consultant with over three decades of experience spread across 30 countries plus over 12 years in central asian countries his specialization is developing projects from concept to implementation and working with resource development agencies to provide funding for projects so these are the speakers that's going to be talking so we're focusing on real steps to invest into africa and we're going to focus primarily on topics we'll be talking about industries of passive investment um africa has many industries i mean there's many segments in many areas but when it comes to passive investment there's certain industries that i recommend individuals begin to consider to looking towards passively investing so we'll talk about that we're also going to talk about how to value a business it's important before you put any money into it you need to know how much the business is worth as well as how much you should value the amount of money you're going to put into it in exchange for the percentage of the company so we'll talk about that we're also going to talk about the contractual and legal implications when you're dealing with investments i mean it has many legal implications there are contracts involved there's laws involved and we're going to break down many of those things to make certain that you are minimizing your risk that's one of the common things you'll hear all throughout this this presentation how do i minimize my risk because this is investment this isn't charity this is investment africa needs they need aid but they also need investments they begin to aid for decades now it's time for investments and they're doing that and we can be a part of that as well and we also teach you how to protect your investment once you have given the money how do you protect it how do you adequately ensure that okay before i invest what can i do to increase the chances that i'll get not only my money back but also return on my investment so we'll talk about that and then again we'll talk about minimizing risk because that's very important when you're dealing with dealing with any investment there's risk involved any adventure in the u.s anywhere there's there's there's um there's risk involved and when you combine that with dealing with developing nations emerging markets emerging economies the risk can be heightened to a degree so we're gonna teach you how to minimize your risk and so you can have a holistic view so you can go in prepare and have fully aware of what you're doing before we begin let's talk about some of the strategies that you have because it's important to have strategy let me get this form we have i'm going to send this form to you so don't worry about necessarily copying it down but before you invest in the country first i always recommend one go to africa i'll be going to africa this time next month i'll be in ghana um working on behalf of some clients as well as continue to network and continue to build relationships but it's important to know i would recommend at least three countries that you are thinking about investing into africa africa is over 50 countries over 50 countries so and it's also important to know the country you go into they speak different languages for example look at this map the red is english-speaking countries the blue is french-speaking countries these are these are what they call the business languages in these countries and this is the um they're based on the colonial heritage if you know about the history of africa it was colonized by by the europeans and one of the things they put in place was a certain language and so for example if you are in this is ghana right here there's an english-speaking country right next to it it's a french-speaking country and so this is important so if you are a person who's looking to invest into to um an african country african nation it's very important that if you're an english-speaking person i would recommend at least starting out with the english-speaking countries they're all here there's kenya uganda tanzania there's many countries that speak english so i recommend you go to ghost to that now if there's if there's an opportunity an enormous opportunity maybe opportunity of a lifetime then i would recommend you you could go where where the opportunity is at but there's opportunity all over africa i mean it's one of the largest continents outside of asia i believe and so there's an opportunity to do that because you don't want to go to a french-speaking country you don't speak french and you have a present you a french contract that's an entirely different issue right there you don't want to sign a country that you don't even that you don't even that you can't even read how can you speak to an investor how can you get how can you get quarterly updates or annually updates and it's difficult that you all don't understand the language now you can get interpreters and that can help minimize that but since i said since they're emerging markets all over throughout the continent it's important that i recommend at least be mindful of the language barriers but if you're a person that can speak english and french then then it works well or you'll get to look at north africa they speak more arabic so if you're a person that can speak arabic and speak and speak multiple languages and you can do a significant amount of business there also i recommend choosing three industries to invest into that's equally important there's a lot of there are a lot of different um industries investing so we're gonna talk about that i mean agriculture i mean there's i mean there's manufacturing entertainment there's many there's many industries that we're gonna talk about on very shortly pick three pick potential three industries to invest in so that way you can have you start learning about these different industries so you can be a savvy investor it's important that you can't just throw your money at things yeah have some knowledge about some of the things you're gonna invest into and then once you have your countries and industries you wanna invest into and you started looking into these countries one of the legal metrics i want you to really be the answer is was there a peaceful transition of presidential power for the last two elections that's very important as you saw in the u.s we just had our recent election and many other many nations had to have elections as well but in the u.s there was a peaceful transition of power from president donald trump to president joe biden and that's good for business confidence because the day joe biden was sworn in the stock market went up so it gives you a lot of a lot of confidence in business because if they're not a peaceful transition to power that's not the environment you want to be investing into this is all about the real steps to invest in africa and one of the risk that's invested africa is minimize your risk that's very important so if you invest into into internet environment whatever there's authoritarian government or there's not a peaceful transition of power there's so much violence in the last president election they may not be the place you want to begin to invest into now there's an enormous opportunity like a once-in-a-lifetime opportunity then you may want to consider that but i recommend that that you do not next thing you want to do is can a foreign business own a local business that's very important because from the u.s side to minimize your risk you don't want to put your own money into into this you want to put your you want to create your company and have that company invest into local businesses in africa we're going to talk about that as well so before you even do that you want to ensure that can a foreign business invest into a local business that's that's critical and also as i mentioned earlier is the is the um official language of the country um english because that's that's critical that's critical to understand like we mentioned there are different languages spoken all throughout africa and if you don't necessarily speak french you speak arabic when you're beginning to invest and you're beginning to visit a country lean towards the the english the anglophone countries versus the the french or the francophone countries now you can learn these languages and also you have to understand that while the business languages may be in these um different european languages there are many languages spoken in africa there's hundreds of languages spoken in africa they may call them indigenous languages and for example in kenya i speak english visual language is english but everyone may not speak english every day people may be speaking kokuyu or in ghana maybe speaking a khan or they may be speaking the zulu they may be speaking many many types of different languages and it's important to know is the investor that i'm gonna invest into because we have some um african entrepreneurs on here and then time presents will allow them to potentially maybe 90 seconds just briefly describe their business and how you can contact them with more information but if there's a potential like a commercial farmer and commercial farmer may not speak english every day he may be speaking in a local language and then the laws in africa have become very very strict on how how valid a contract can be for example you sign a contract with a potential investor and that investor does not speak he's got a potential contract with um a company and a company and a country entrepreneur does not speak english or doesn't even understand english that contract can be voided because they want to make certain that this person this entrepreneur knows exactly what he's getting himself into so you can get interpreters and minimize things such as that but it's mindful to be aware of the languages that's why i say choose three countries to invest in because there's so many languages to invest into and if you just follow this if you follow this form in and of itself you are already minimizing your risk of losing your money you're already minimizing the risk when it comes to investing into africa because you understand just the language concept with a peaceful transition of power from the other other um elections and so once you have your countries in place let's talk about some of the top industries in africa for passive investment my first webinar was more about active investment more foreign direct investments how you are taking the controlled interest in the company and how then you can um maneuver within that this is more passive investment this is going to be you will be some ideally ideally you'll be in america with your current job and usually invest in the country at companies in africa so we're going to talk about that the first one is is agriculture the the numbers are are enormous when it comes to africa it's africa as far as the potential on agriculture you think about think about rice cocoa cassava all these different things even even like even non-fruits and vegetables like fish and chicken when you think about aqua from an economic standpoint the supply and demand aspect africa suffers from the supply-side constraints that's important to understand the demand for these goods are consistent there's a demand for it but there's not enough being produced for example with rice rice is a pretty stable it's a staple crop with many african nations it's very common to have rice it every single day that's not uncommon or to eat it quite a few times a week but most of many african nations import rice they import rice so that's an opportunity that's an opportunity this is like this the numbers say there's so much fertile land in africa it has a potential to be the bread basket of the world in the future so that's potentially a lot of qualified farmers who've been forming all they like they come from a generation of farmers we're going to teach you how to evaluate them and how to how to make certain that okay this is this is a safe bet we're gonna teach you all of that stuff but i'm just showing the opportunity right now rice these are opportunities poultry fish fish is a big part of african diet these things are there so that's the opportunity for passive investment manufacturing following up on agriculture standpoint um agriculture equipment how you can mechanize the process of processing raw material into something that's a finished product because it's not uncommon for it's not a common to see one of these items in the first line be exported and then re-import it back into africa in a juice farm like for example pineapple as for the pineapple to another country who will process it and send back and send back pineapple juice that's not uncommon that's not uncommon in many african nations so you as an investor you can say okay let me purchase on this farming equipment and the benefit of being in america america is known for its quality when it comes to farming equipment agricultural products fertilizer seeds and these are things you can help the investor invest into so they can be more productive you can buy a commercial juicer these equip farm equipment for a couple thousand dollars you by yourself or you can get together with a couple of your peers and you can buy some of these things ethanol is also a good product for example cassava cassava you can buy a machine however have them have a um maybe a smaller factory help them that make a smaller factory and convert cassava into ethanol corn into ethanol these are some of the things you can do i feel like africa in many ways will be the next manufacturing hub of the world because there's a there's affordable land affordable labor and it just so the supply side constraints on it there's just a demand that's not being met so these many things you can do in africa and you can help the individuals who are doing this thing doing these things do this as well tourism tourism i mean the numbers the numbers say africa has over i believe it's over 18 000 miles of coastline when you look at the african continent and you have entire coastline these are beaches right here these are legitimate beaches and some of the best beaches in the world are in africa like blue ocean water so from a tourist so far so from an investment standpoint you can invest in some of this stuff you can for example you can buy investment property for yourself as well as you can buy investment property to rent out there are property management companies in africa who will do who will do it all they will they will they will manage the property they'll find your tenant they will um also collect the rents and also fix the fixed damage you can find it in any country and you also find it in africa as well and the cost of the land may not be as expensive as it is in many other places that's one way another way is hotel you and a couple of your friends investors can get together and you can build a hotel or buy a hotel and renovate it and the thing is once you do that you'll reach out to one of these big um hotel operating companies like marriott or the big the big national brands oftentimes what you'll see is they're not the ones that are building the hotels big entrepreneurs are building the hotels developers are building these hotels and they reach out to a marriott like a courtyard marriott or whatever or whoever it is and say i need you to run it because they they know how to run hotels and then after you can you can tap into the national their international brand as well as they know how to make things run efficiently so that you see that all the time with hotels many of the hotels maybe even most of the hotels you see there are developers and operators who are passively investing they built it they developed it developed it and now they're splitting profits either 60 40 with entrepreneurial six percent of the profits in it and the marriott or wherever the big brand um company is who's running it and operating it they'll get like 40 of the profits they'll split it that way so that these opportunities that you can do from a passive standpoint and you can minimize your risk if you if you're if you're going as a business with a big brand hotel you're minimizing your risk because they know what they're doing and they also have hotels throughout africa as well it's not uncommon to find this i was in sierra leone um i recently did a video in sierra leone that's going to sierra leone the hilton hotel is they're building a hotel they've been a nice fantastic gonna be on beach front property they'll be they're building that it may be finished now but they they were definitely building that in sierra leone freetown also airbnb's we we know we know that the idea of airbnb is when you go to when you go to go to different places airbnb no matter what country you go to that's a thriving business also flipping leasehold land this this is something that's not really talk much about because africa in many ways is a leasehold idea is that if you're a foreigner you can't own land outright they'll only give you a long-term leasehold that's how that's in many if not most of the african nations the vast majority of them may be that you can't own land outright you can only have long-term leases for example a 50-year lease you have that in ghana or maybe a 99-year lease in another country so what you can do is i have a whole entire article about minimizing the risk when you come to leasehold land but this is this is tremendous opportunity um one thing you can do to protect the one thing you do to protect your your your um investment is that you can in the contract you sign when you're buying this land you want to get a right to automatically renew your lease so say for example you're in ghana or another country has a 50-year lease in the contract you have you will have the right you will have the right the entrepreneur the investor to automatically renew that lease so now you have it for 100 years now you may say that may not be enough 100 years i want to pass this down to my heirs but there's other things you can do to minimize the risk these are these are legal structure and how you can structure your your contracts one is that you can renew multiple periods of 50 years so for example instead of saying that um jeremy johnson has a right to renew at the end of his release you say jeremy just has a right to renew this lease this leasehold land for up to three consecutive periods of 50 years so that gives you a total of 200 years the original 50 years and in three um 50-year periods that's 150 plus to 50 they give you 200 years and the reason you do that is because instead of just saying 200 years you'll be violating the law because you're going to do if you don't do it for 50 years but if you're doing it for consecutive periods now you have up to 200 years and you can make certain that you feel comfortable and that you're minimizing your risk and you have this property for a long time another thing you're doing dealing with leasehold land to minimize your risk is that you can get um insurance there's insurance out there where you can get on the land that if if if it's time to renew your lease and they don't they don't allow you to renew after those 50 years out of 100 years the insurance will will pay you back for everything you have invested into so these are the things you can minimize your rates when it comes to leasehold land i hope that makes sense i won't explain to that well enough but realist but when it comes to flipping leasehold land is that you can buy a lot of this beachfront property one thing akon said when he first it comes from africa so he's a great he's very aware of these um opportunities when he when he first got his big money rapping he bought he bought thousands of acres of land beachfront property in senegal he's just holding it knowing like he knows what the international world values we value beachfront property and so he's gonna be able to flip that when the prices rise to make money and these are some of the passive things you can do so there's a tremendous opportunity also music entertainment the music industry in africa is enormous i mean um nollywood these are billion dollar industry some of the biggest artists um whiz kid burning boy these are the biggest um artists in the world and there's many to be rapidly growing and you can and you can invest into that there's entrepreneurs they're looking for investment to start a studio to modernize a studio you can invest into that and if they're already profitable as a studio you can invest into that and then they get a higher return investment you can start to help invest into a record company out there maybe have a nightlight club nightclub a lounge many places in africa particularly in the main cities in the major cities they have night clubs this is nice as anything you'll find in new york city that's why it's important for you to go to africa go to africa and see for yourself i challenge you just to see for yourself and say okay this is what i'm dealing with you'll start seeing the opportunity okay this is the industry i want to pursue you start speaking to people in this country what are the what are the industries that are best for investment where the need is the highest and people will tell you they'll tell you technology we all know technology africa um africa in many ways they they grab a hold of technology the quickest for example um africa they have mobile money most countries a lot of countries naturally have mobile money a lot of that a lot of a lot of africans are unbanked so one of the thing they took hold to was on their cell phone they have mobile money on their cell phone mpesa the mtn if you're in ghana but the money is is on their cell phone to their cell phone connector that hasn't come to america yet also africa went from no phones to cell phones they didn't they skipped the whole process of land lines so africa holds holds quickly to technology and their technology scenes all throughout africa i mean particularly south africa nigeria kenya and even ghana these are big technology hubs who are entrepreneurs are investing into products that's for africans as i understand it's important though that africa has over a billion people so you may not be aware of it in america but there's a billion billion people in a market that you can invest into and and change and maybe bring value to them but the key issue is trust if you don't trust entrepreneur or you can't find trust in this then it's not even worth your time investing it's not worth your time you often hear about the shady individuals that you'll come across maybe but they're saying individuals everywhere in africa you go to africa you see that there's there's tons of good people there a lot of good people and but the key is you got to find individuals you can trust me find companies that you can trust into and we're going to talk about those things how can you increase your um confidence level before you give a dollar how can you increase your confidence level we're going to talk about that so you have your industries you know what countries you want to invest into how do you find the companies to invest into that's critical you have all this information how do i go about finding companies to invest into one thing the us government go through us government um in particular there are many there are many options there are many opportunities the united states they do trade missions american government sponsors trade missions they'll go to different countries entrepreneurs they'll say come with us we'll go to this country maybe nigeria maybe south africa maybe whatever and then they'll help facilitate investment between different entrepreneurs this is what the american government does also ita they have commercial services these are the i'll send these slides out to you as well but there are commercial services they will introduce you to potential partners potential buyers that you can do business with these opportunity american government understand now ita focuses primarily on export but as i mentioned earlier america does fertilizer seeds agriculture machinery like these are big things you can do you can start you um invest into a rental you can make these different individuals can rent your the farmer equipment you find a company to invest into that has these that have these products and willing to expand and american government can introduce you to these individuals so right here the government working through the government i mean i mean in many ways i mean once you get to a certain level you're going to have to have some level of public private partnership at some level if you want to do business the right way and minimize your risk a lot of consultants out there but to minimize your risk you you want to deal with some type of government also the african embassies that's very important they're african embassies all throughout the u.s and if you go to them and just have a conversation i'm thinking about investing to your country you go to the south african nbc in america i'm thinking about investing into your company in these particular industries energy whatever it may be can you teach me or help me connect with me with entrepreneurs it's worth the conversation is it just walking in and speaking with someone or looking online and emailing that person also the african in particular in ghana ghana has a dedicated investment and promotion center i've been to that i talked to individuals in the gun investment promotion center and they tell you this is how you go about investing in starting a company or investing into this country they're seeking investments and it's worth the conversation also lawyers and accountants you say i'm going to ghana this time next month i'll be i'll be in ghana for a couple weeks and facilitating connecting with different on behalf of clients as well as connecting individuals and building relationships and things like that and these individuals you can trust but particularly i mean ideally you can trust someone because they borrowed and they can lose their bar license by messing individuals up so you don't want to say you want to bait them in mindful of it they can introduce you to different individuals particularly people that have relationships already on the continent trade shows their trade shows all around the world the united states do trade shows so you can go to those trade shows and find different entrepreneurs they have a booth set up or whatever and say hey are you looking for investment and if so let's talk business methods on a non-disclosure agreement that type of legal contract you may have to sign you have to sign that many things such as that but there there there is opportunity at different trade shows around the world i mean you want to if you want to invest into kenya or whatever it may be um i mainly focus on the english-speaking countries and if and if you speak if you speak if you speak a different language i'm not saying other countries aren't um good i mainly even focus on what they call the anglophone countries because i'm a native english speaker but i'm in the process of learning french myself and there are tons of opportunity in many places our econ focus is on cynical he's from senegal that's a french-speaking country now they speak they speak english in many countries but they're going you're going to trade shows in these different countries and trade is on the rise i'm not going to talk about it briefly but the african continental free trade act they just pass that within the continent of africa and it'll be easier than ever to trade within the continent so they're going to be doing trade shows that'll facilitate this kind of investment tech centers i mentioned it earlier um you could just google google tech centers in ghana texans in in um they call it startup hubs and they call it tech hubs and they call it different names but in whatever country you wanna invest into you can you can enter that in and you can go there you can maybe pay a small amount of money and you can go into a tech hub for a day and have your seat in there embedded network with different entrepreneurs in that in that sec in that tech hub and you can start talking to them and if what they're saying interests you you can invest your money five thousand ten thousand a thousand dollars or a hundred thousand million dollars whatever whatever your investment strategy is you can do that oftentimes you hit with well angel investors um this is a common strategy in america in silicon valley they may have a hundred thousand dollars and then set up a hundred thousand dollars into one company they'll put 10 000 into 10 companies and hope hope three of those will take off and they often do and also referrals from investors and family and friends this is this is very important because from a very american standpoint most investors invest from referrals if you if you if you find an investor a venture capital fund or a group of angel investors and you send them an email it's unlikely that you'll hear back from them because they want to invest from other investors they have invested into your company and they get that from referrals as well so you can reach them up i bring it i say all that to say that you can find entrepreneurs who have investments from investors talk to those investors and say what have you invested into and then you can begin to gauge whether you should make that investment as well because you can buy you want to find people that already have um already are already in the business of investing and you can potentially network and also you have any family and friends i know individuals on this call some of these individuals on the call they um they're first generation americans their families are from these different countries in africa and they may have a family of friends who are doing some business in there it may be worth investing into it's all about trust we're gonna talk about how to evaluate these businesses but these these are seven seven plans if you follow these type of plans you're gonna find companies to invest in them i mean it's just impossible now it goes to how can you vet these businesses to ensure that what you're investing into is the real deal it can increase your chances for exponential profit that's very important so we're going to talk about that and but when since i am a lawyer and we don't bring the real steps to invest we're going to teach you how to structure your investment because like i mentioned earlier you don't want to just take money out your bank account and then put it into a company that's not the real steps to invest in africa that's not minimizing your risk ideally you want to create a company and then have that company invest into the african company african company that's very important as i mentioned earlier one of the key metrics before you made any investment which was was to ensure that a foreign company can own a local company we talked about that earlier so one of the things you can do the best practices to do is you start to a company in in delaware the state of delaware is has some of the best business laws in america and you will create you an llc in delaware for example you look at look at coca-cola coca-cola is a c-corporation they're incorporated in in delaware but the headquarters in atlanta mastercard is headquartered in new york but it's incorporated in delaware so you can incorporate in delaware and have a headquarter wherever you're living at to ensure that you are protected in both ways well these are some of the best practices to do this and that's and that's fairly simple and when you invest into these companies the entity names are different in america and many other places but they're in essence the same well more likely you'll be vested into our private limited companies um every country is different they have they go by different names but generally speaking they may be called private limited companies that you'll be that you'll be investing into in africa and what you'll be getting to to minimize your risk you'll be getting you'll be investing for preference shares in c corporations america they call them preferred shares but in many nations they call it preference shares and the preference share ideally is that it'll entitle you to get paid before the entrepreneur get paid so if something bad goes happen and they have to shut the company down you'll get paid before they get paid there's a dividend out you'll get money before they get money this is very important this happens all the time this is this is standard business and everything is up for negotiation but this is standard business you raise money for a venture capital fund in america they're going to be vesting for preference shares for preferred shares in america that's standard business and then if you get good enough or if you're already an accomplished um investor we have some people that are in the financial sector on this call who register you may be essential a venture capital fund and this is the legal structure of a venture capital fund we'll go through this very quickly this is the legal structure you hear about a venture capital fund a venture capital ideally they invest large amounts of money into companies there's some individuals on here that are in this industry that are in this industry private equity funds they typically buy a business and they make optimize and make it run better but when you're dealing with investment passive investments we're going to be more than focused on venture capital funds so you'll see there's a management company up top often these are delaware entities these are these are primarily in america they're of delaware entities embrace the the concept of the state of delaware it's very it's a very powerful um it's not a big state but the laws of the state are are very powerful and very favorable to businesses most of the companies on stock on i'm willing to say pretty much all of the companies at least the vast majority of the companies in the stock market are are heck are incorporated in delaware and they just headquartered in other places throughout throughout the us but in essence they'll be a general partner and they'll be a limited partner and we'll go through this real quickly but the division capital fund they'll raise money from pension funds city pension funds university endowments wealthy individuals and then they'll put the money in a limited partner and then they'll invest in a different company country different companies so they'll be they'll be a partner running this fund management company you have a partner running this running this fund and have another partner running another fund and they'll be making investments in two different um companies now in america they're primarily invested into c corporations because c corporations can give um preferred shares they will not be invested into different llc now they'll be organizing the llc but they won't be they'll be invested in the c corporation but c corporations give you those different tiers of investments and if you're invested in africa you want to invest into companies that can give you uh a preference share similar to a preferred share that you'll get paid before anyone else get paid so these are some of just the legal fundamentals of structuring your investments so just a lot of you talk about a lot we talk about just how to find a business how to minimize your risk structuring it from a legal standpoint is is critical to understand but these are some of the best practices to go about it and then also you want to go about valuing a business you mentioned earlier i mean we mentioned earlier what are we missing we may not better find but you're valuing a business you you have a country you want to invest into you follow the entrepreneur you want to listen to how do you go about valuing that business because they may say my company has a 100 million evaluation okay will prove it to me how do you go about doing that and one of one of the ways one of the common ways is the earnings based multiple that's very important this is this is very common um when you when you're selling a business this is common across throughout the world selling a business you have it with earnings now they're say for example they're profiting that business of profit 100 000 a year profit you can give it a multiple it's pertaining to that industry so that so if it's um let's say is is agriculture or the other it could be very simple agriculture and the farm is making 100 a year this could be very simple and you learn to invest into it and let's say that the agriculture industry have a multiples between three and seven so that business can be evaluated anywhere from three hundred thousand to seven hundred thousand dollars did that make some hope that makes some sense check your header that may look made a little sense to you um so that's important to understand and with that you will be able to evaluate engaging if you want a 30 interest then based on earning the valuation that you have you invest 30 of that that's a common way to to do that so it's important to better see i need to see your financial statements let me see your books if they don't have any books then they may not be the company investing center you can be you can just be a matter of fact is that also growth oftentimes you'll see particular technology companies they may not have any profit amazon didn't make profit for years facebook didn't make a profit for years but should you have not invested in facebook or amazon there's many african countries many there are many african companies now that did not make profit for a year that is one of the biggest um entities in in biggest companies in africa i believe i hope we're pronouncing like jumo is one of the delivery companies like amazon in africa they're doing the equivalent of what amazon does in africa across in many countries and one way you can gauge the value of a company is through growth amazon wasn't making a profit but they were gaining tons of customers facebook wasn't making a profit but they were gaining users at an exponential rate so you're saying it's growing at this point this may be worth me investing into and then one way to minimize your risk they have audited financials they're big four accounting firms in many african nations ernst young pricewaterhousecooper um there are many of them there are many big four accounting firms in africa so entrepreneur that gives you these documents as a part of doing business due diligence let me talk to a lawyer let me take these numbers let's go to to our local um big boy county firm and also as i mentioned earlier these firms are also going to introduce you to to to on to uh entrepreneurs as well go to you go to the ernst and young or kpmg or in america and say i want to meet entrepreneurs in this sector in africa you have office there already introduce me them to them over there you have to pay a retainer you have to do some type of down payment whatever but they will introduce you to them and if that and if that's a successful entrepreneur in that local african country he'll take you more serious because now you can introduce from a reputable firm reputable law firm and they're not just saying that they probably heard a lot of people that want to vent into your company they may have heard a lot of things as well they will take you a little more serious and also from a legal standpoint you may have signed a non-disclosure agreement with that entrepreneur don't be surprised at that you may not but when you're dealing with numbers and you start seeing you start looking at balance sheets and income statements and things such as that they're going to make you sign well i would recommend them to make you sign a disclosure agreement i wouldn't want anyone to look at the books of a company and then just go tell them telling everyone this this is how much this company makes information gives to the competitors that can make you lose your clients lose trust in you i mean you can call so many different there but also some legal implications as well like you you're giving up trade secrets and different information such as that but there are also some other ones there are also some other ways to value we won't cover these but these things you can look up yourself asset based evaluation discounted cash flow ratio based valuation these are some of the other ones now these are the the first two are some of the most popular ones but these are also other ways to value your businesses and you can use the combination of these you can use earnings based multiple and this kind of cash flow to come to somewhat of a uh an average of how much money you should invest into to these companies and also when you're when you're in that when you're evaluating companies like i said this isn't this isn't charity this is this is this is real stuff real investments one does the company have a ceo they're ceo of the company is there a financial person who's your accountant who's the legal person there is a lawyer that you can that i can come into contact with right now who are your board of advisors if you're a technology company let me look at your board advisor your board of directors are these individuals have they done what you're trying to do if you're a farmer do you have a board of advisors of a successful farmers can i see that can i have a website can i see these people can i look at your website can i talk to these people and i know we have some entrepreneurs from africa on here but these are the things you can start putting in place if you don't have these because these are things to be attracted to investments these get these will give investors a lot of confidence that you can give them their money back if you meet an investor make them sign a disclosure agreement show them the documents let them meet the ceo let them meet the board of advisors let them meet these things meet these people and you're going to attract a lot of investments so it works both ways and then the entrepreneur will be able to vet investors and say hey i don't i don't like you as an investor you can't invest into my company but i know what we bring i know the value we bring i have shown you proven track record on paper of audited financial statements of that we are profitable these are the real steps to invest into africa these are this is how you minimize your risk tremendously and i pride myself on brilliant bringing a lot of value to individuals like i said we're gonna we're gonna um send all these forms to you just make certain that we have your email address if you don't have it you send your email address to amman walker or you can email us at info at global law dot tv preferably send an email to our mom walker since we're right here in the meeting also you're protecting your investment so let's back it up a little bit so you went you picked your countries you've um found the entrepreneurs you were investing to you've done your due diligence you done you you figured out okay this is the company i like i want to be i value the business you've already taken the steps for passive investment you can still have a job in the u.s you can still do all these other things as you're currently doing but you've also got to be doing your due diligence before you give up any money have you done your due diligence and so and now you made the investment into the company how can you protect your money one way there's a couple ways you can do it you talk about preferred shares earlier one way you can start off with maybe let's start with a loan so let me offer an investment let me offer you a loan a private loan between private individuals or private companies and then based on that if you pay me back then we could talk about doing an actual larger equity investment to your company that's one way that'll be a test run particularly if you aren't um necessarily familiar with the environment these are some things you can do this is after you have done your due diligence you don't met you've met the board of executives you don't you've met the ceo you've met many of these things you know you you're you're acting as a savvy investor a sophisticated investor another thing you do is what you call earn out this is important to understand you see this you see there's a lot in investment contracts the idea is that um investor will invest into the company if a company meets a certain metric in revenue if it meets a certain um amount of sales then certain things would be happens that would be beneficial for the company and the ceo for example here's a here's a sample clause clauses you can put into a contract this is a very simple clause if company achieves x amount of revenue that can be a ten thousand dollar revenue million dollar revenue a hundred million revenue the numbers just saying it's all the same the numbers the numbers are just different doing if you achieve this amount in its first two years in operation after the closing date the ceo should have been entitled to additional compensation such as uh x amount of number of shares in the company they can get those back so the savings number you want to get you may invest and own 60 of the company but if it meets a certain metric then now they've earned earned back and now you'll be 50 50 partners or however whatever you all does i agree on or it can be another sense of structure where that entrepreneur or that owner will receive x amount in cash because oftentimes if they say for example you you i mean say for example if the entrepreneur feels like he had a bad deal from the person that invested in the company entrepreneur can just stop working they get to say i'm not working anymore but why should i work for a company where i'm not really benefiting as much so that's that's important when you're negotiating all you can do that is incentivize the entrepreneur with an earn out you can get cash back you can get shares your company back because your investments if you passively invest in into a whole different continent you want to keep that entrepreneur motivated it's very important and these things are common all throughout the us and silicon valley these are very common things that you see also convertible debt this is this is like what i call a loan 2.0 this is important the normal loan the loan normally is if you i'll see you i'll send us out a loan as well you can we get a chance to get a sample loan um normally with a loan you make you give out some money and they'll pay you back x amount of times with the entry so you get your money back plus interest the convertible debt is a long-term net level it starts off as a loan but it can convert into equity in the cu in that company if it meets certain metrics for example if there's you see there's a lot in silicon valley this is live really all around the world it started as a loan but if but if the company gets bought out by another company or meets a certain um a certain um level of revenue if i attract other investors then it'll convert into equity into that company so you're protecting your downside protecting your downs and protecting your investment because they can't pay you back it's a loan they have to pay you back but if but you also give you the upside as well to to take advantage of that because alone just you only get an interest back but if you get you can convert into equity and you can get a geometric profit in your money so you can start as a loan but it converts into equity into the company so these are some of the ways to protect your investment and i mentioned earlier oftentimes you'll come across entrepreneurs who have been making money like you may find a business owner a store owner they may own machinery they may own i mean there's so many different industries in africa i mean but it may be it may be a record company it may be a music club it may be i mean there's something interesting i'm not even mentioning a lot of the industry so i know there's a lot of energies out there that i'm not mentioning but if it's a farmer or whoever it may be and they don't have these financial statements for you but they're a talented individual they can make it move this you see the profit you're saying the organization skills you're seeing them doing things that are productive you've seen it yourself they have witnesses that references but they don't have the financial document they don't have the structure they don't have a company set up in place they're offering they're operating based on cash should you still invest into that company my answer is absolutely not that's my that's my that's my that's my that's my that's my recommendation now this may sound a little harsh but these things i want i want to ensure that we have african entrepreneurs on here because these are the things that a savvy lawyer would tell their client because this isn't necessarily a charity this is business this is business so you have to get your border advisors board of directors in place you have to get these things in order to make certain that you are tracking your investment and if you are an investor standpoint you want to ensure you want to have the utmost confidence that you are that you can get your money back and also increase your chances and one way you're not minimizing your risk you're not taking a real stuff that doesn't africa is by not having a company that doesn't have the financial documents in order because they're saying we want investments they're saying they're saying we want investment now they don't want a business they don't want investments but and also you won't invest in the majority companies you encounter you got to walk in knowing the majority of entrepreneurs i i encounter i will not invest into their company i'm looking for the baseball analogy one buffett talked about this a lot you're looking for a strike you're waiting that strike most of the balls that come down from a baseball you do not swing in every pitch waiting for the one that perfectly aligns because this is a passive investment you're not going to be doing the daily management of the company this is very important no i did the first video we did on foreign direct investments you may be more actively involved but this is passive investments so you want to you want to do that but i say all that to say if there is an entrepreneur that you believe is talented and you believe this person has a has a potential who he this person he or she and there's an incredible amount of women entrepreneurs that are doing their thing i mean in everything fabric i mean everything hair the hair industry is booming in africa i mean there's there's so many different um sectors men and women that are doing it and if you have this person you believe in this person it could be a family member in many ways it could be whoever it is you can help this person get some structure for their business you can get some audited financial statements you can help get a bank account you can help with all these different things we talked about earlier and then you can invest you want the entrepreneur to know to know that this is real business this isn't necessarily a cash issue this is yeah it's important to have cash but you also want to facilitate going through a bank a reputable banking in that country you guys want to have a legal entity these companies these things exist for a reason they're more attracted to businesses so you want to make your your business more attractive to investments as well because you know a savvy investor will listen to you but they already have the mindset i'm not going to invest in the majority of companies i come encounters with and you see that in america every day i mean if you're an entrepreneur or invest in america you get hit with you get contacted with i mean it's countless i thought investors you get this countless amount of emails and cold calls they get from people in america they invest into my company and they know ahead of time i will not invest in the majority of companies that people that i get contacted with so this is business around the world so these strategies apply as well and also this is my last slide pertaining to risk minimization we thought our racing analyzation all the way throughout here and the main three ways you can minimize your risk you can contract it away you can insure it away and you can hedge it away you talk about some of these things um you start with a loan preferred share the preference shares earn outs to incentivize the individual and also international arbitration you have it in the contract as well i mean individual there's a there's a there's a dispute in the business you walk in you all can say that instead of litigating in in the courts of the us or in in a local court where they may like it well the other entrepreneur may feel like you may get what they call a hometown by hometown bias you may get um individuals the court feelings are for you and either in either place you can do it in international arbitration and you can as many you can i mean you can choose the new york convention there many you can choose new york commission is a very popular one but it's international individuals they're not affiliated with either jurisdiction determining who is the um the winner in that aspect but like a better word you also get insured away if you're dealing with farming you have to you can have it in many ways ensure that there's crop insurance there's a bad season the insurance will will reimburse you these are you need something you can you can make certain that the entrepreneur has in place these are the real steps to invest in africa political risk insurance for example you saw in cuba when castro came in office he just nationalized everything everything that every company is is his property of the cuban government so the bacardi family left and they went to puerto rico i mean there's many cubans left anyway because of political risk also natural disasters if you're building a hotel i mean what happens if i don't know what happens in the national disaster company there's something that's unexpected a fire i mean whatever it may be come and wipe out wipe out everything and also when it comes to heads if you're changing money from different currencies a lot particularly like international trade you can um you can hedge against those currency fluctuations those interest rates fluctuations how many things such as that so this has been an incredible part beginning to teach you the real steps to invest in africa from passive investments if you do this there is no doubt in my mind that you will be a successful investor in africa these days apply across really anywhere you showed you how to find the businesses you've shown you how to strategically pick your african nation he showed you how to minimize your risk in the contract aspect in so many different areas we've shown you and i hope i was there to bring you some value because these are the real steps to invest into africa there's no doubt about it so now let's turn it over to our month we're gonna we're gonna do a book raffle because we believe in providing value and one way you can provide value to information another way to provide value is through prizes as well so i'm gonna take it over from there one thing i pride myself on is being able to bring real value to people like like real values you can walk away empowered you often hear individuals they'll go around the subject but i want to tell you cut through it this is how you do it step one step two step three step four so i'm confident hopefully i can provide some value to you in this in this in this 30 minute consultation this is important about it i mean this is the new year 2021. can you take what you're trying to do to the next level can we make your dreams a reality and i believe we can and it requires a team to run yourself with some of the best people best minds in the world teach you how to take advantage of it international trade investment has always happened america was built on people coming from one nation or one area to america take advantage of opportunity a thriving thriving growing economy america and beginning with an emerging market so these are some of the same things you can find in the continent of africa i mean i think it's the last place for massive development i mean these are focused on past investments but there's a opportunity in education and opportunity i mean it just i mean everywhere i mean everywhere you know i mean everywhere i mean you name it health industry i mean every every single industry you can think of i mean there's opportunity for it in africa and you have a level expertise you can begin to start strategizing how can i take advantage of this in africa what is your global strategy from america's standpoint there's more money outside of america than in america there's more opportunity outside of america than in america america is a very mature economy it's a very mature economy but there's opportunity people are doing this everywhere china they have entrepreneurs there's no factories in africa africa will be the next manufacturing hub of the world so we can talk about some of this in my in my um 30 minute consultation and so now we can keep going until our second presentation uh from economist taya thank you aman thank you uh tony um jeremy it's a great pleasure for me to uh present uh leveraging donor funding for private investment in africa but before i go into that i just want to um kind of uh give you a summary of what uh attorney jeremy has presented just for you to have you know the key uh nuts and bolts because uh he has said a lot of things and we're going to be sending out the uh the presentation but passive investment like he continuously emphasized is what uh he was talking about and i want to tell you that he's all just not in africa alone also in america the richest people if you go and do your research very well warren buffett and co uh part of their investments was in what is called warrants that is you have companies who issued warrants which are low cost investments and these companies then grew into high growth impact com companies and of course they made a lot of money from little investments as as little as 10 cents per share and so what we're talking about passive investments in africa it's it's not a new concept per se it is already it was existing here and it's still existing and like i said the richest of uh you know investors here made their money from warrants which are issued by high growth companies that you and i don't know of and they are under preferred shares and of course as they achieve the results the investments go up and wealth is made so that's actually a very key strategy passive investment is a key strategy to wealth creation i want you to know that it's beyond investment it actually can create wealth for you beyond what you can imagine um the core elements i want you to take uh home just like catholic jeremy mentioned strategy strategy you must have a strategy you know the legend management guru peter drucker said something which has caught my attention and i've held down family to it he says the those investors that make an impact and wealth will always search for uh change and opportunities and they will respond to it with a strategy it is very important if you're going to do anything substantial that will earn you impact and bring you wealth as a passive investor you have got to have a strategy the other word is opportunity there are tons billions of tons of opportunities out there in investments these are actually found in small medium enterprises we're not talking of big companies they're small medium enterprises and let me surprise you the the most growing trend now are women-owned enterprises they are very stable they are very sustainable they have quality excellent leadership and management so i encourage you let's look out for women-owned women managed women-led enterprises they are actually turning the world around especially in africa because they are diligent they put their all in it and that's not to minimize men anyway but that's just for you so you have strategy you have opportunity you have niche which is where i mentioned women owned enterprises and then you had atonic jeremy continuously mentioned minimize your risk and optimize your investment that's what all this seminar is about how to minimize your risk and optimize your investment let me ask you a question where would you put a thousand dollars an investment and over a 12-month period you are able to earn more than 10 to 12 000 dollars real real uh uh real money i can tell you that you can do over and over in africa when you are able to minimize your risk and optimize your investment and that requires strategy it requires niche it requires due diligence he emphasized due diligence and that's the that's the purpose for global law media that's why we exist is to provide you due diligence that guards and guide your investment to achieve the maximum results that you desire even beyond what you desire one of the things he also mentioned that you need to uh it talked about growth potential audited financial statements these are things that people don't ask for people who have lost money in africa and i'm in nigerian by the way and of course uh you know so so ap i've seen a lot of people who have lost tons of high value investments in africa why because they don't do these things that you have just been taught they don't go through due diligence process they don't engage an organization or a company like global law media to help them to develop an investment plan or strategy by taking into consideration this core element so please don't invest foolishly invest wisely the investment that it will cost you to engage low global load media to do the thorough due diligence for you compared to what you will make is very very minimal and that's what is called the seed pot if you're not willing to seed how do you expect and harvest so that's important he talked about political environment we can provide you a critical analysis of political environment now what you hear is cnn news we will provide you what is actually happening on ground we have local you know investor a field people who will give us the required relevant information that will tell you the political index even in five years time what you will not know about so that is very important because the political stability is key to investment you know uh results and strategy he also talked about you know he talked about business valuation and being an economist that's an edge for me as an area for me business valuation is important one of the areas that people have also lost money is that people will provide them with very shoddy business valuation they get excited about it but it doesn't have substance and then within a few months or a year you know the whole business falls apart what you thought was highly valued so it's important for you that it's done by a very reputable individual individual consultant organizations or even institutions can do that for you colleges they're using their students to do to value business university of south africa has a hope that they will do a thorough business evaluation of any business investment you want to put your money in in south africa so these things that you are learning here they are actually worth a lot for you as an investor nestle mentioned preference shares and that's where you're going to structure your investment the legal structure of your investment that's a negative for global media and we want to help you there so you have the word strategy opportunity language minimize your risk optimize your investments be a consider business valuation very recognized organization to do business valuation looking to women-owned enterprises women led and women manage enterprises two industries i want to mention that are really blowing off the roof the apparel are leather and textile industry they are very soft industry but in africa i can tell you african testers are gaining global recognition and impact leather leather finished leather products are broken off the roof and then of course the apparel all kinds of other accessories and these are investments that you cannot you cannot lose on them they are guaranteed sustainable long-term investments and there are many small medium enterprises and when you invest in it is not just the financial return you are also bringing in what is called a social capital you're doing something that is socially responsible and i think it will actually also motivate you give you satisfaction and fulfillment that you are not just making money but you are building people's lives you're transforming people's life and you are building sustainable communities and livelihoods and so it brings joy to you to invest to make wealth but also to see lives transformed my presentation today is focused on a different aspect but which complements a passive investment or private investment and it's been tied to leveraging donor funding for private investment in africa what has changed over time is that you know donors and i know most of you that are on these uh platform you understand or you have heard about the word donors and the traditional meaning of donors are they give out eight this is beyond eight the donor investment community has transformed from just given aid they are now looking for partners they are living in a new normal and that has been in the last five or about ten years where they are looking for investors private individuals private companies who are willing to partner with them in their mission why do they why are they looking for private investors one rich they believe they can guide to reach much more much many people in terms of the scope number two effectiveness number three efficiency and then overall sustainability so they're looking for you and i individuals who like jeremy said you form your private uh enterprise don't do it by individual but there are also opportunities to do it on individual level where you then engage us do a thorough search or they do not see where their mission priorities mission objectives are and then see how the alignment of your interest of investment can be uh match together and then approach them which we will talk about so let's talk about uh what is the purpose of donors looking for private sector investment the purpose of the model uh one thing i'd like to do is to define it for you the the definition is a specific type of investment that is the donor private sector investment is a specific specific type of investment whereby donors with private sector partners advanced mutual interest through co-creation it is a mutual interest it's not just their interest but also your interest through co-creation that means you bring to table what your interests are just like atom attorney jeremy said the interest areas industries you want to invest in and then they look at their own mission objectives or priorities and see where there is an intersection there is a match and if there's a match you begin to co-create that means you bring to table watch your own theory of change is number one thing to understand is that you must it must address a development problem a cost a development problem or cost that meets the objectives of the donor number two it must also have a high scope they're not just talking about a few thousands or tens of thousands they're talking about how can your product or services or the product or services you are interested in investing in how can they lead how can it reach out to a better and a higher market population so it is important to understand that it's mutual interest people always think no they're going to muslims no they're going to work together to co-create a package of services or investment that reaches a high number of people that is effective is efficient gets you your returns has a social capital so that is the essence of donors looking for private sector investment so they are looking out for you so it is actually called fostering business with a purpose fostering your investments with a purpose a purpose that involves human lives communities and of course a whole nation transformation now let's look at the other the cause rationale that supports this please go to yeah you're now on the slide uh one of the like go to the first slide please yes that's it international development adoption of the 2030 if you're not aware of this in 2015 there was a transformation from millennium development goals to sustainable development goals the distinction between sdgs as it is called and the millennium development goals which ended in 2015 is that the sdg now has leveled the playing ground for every investor and it's inclusive it includes individuals corporations non-profit organizations foundations yes the distance as a foundation of guiding and guiding each and every investor whatever type of investor you are in in specific focused target sectors number one specific focus target strategies themes and then they have defined the indicators there are 17 sdgs 17 what you can call over arcane goals that govern every kind of investment you can think of in any country and based on this they've also identified 169 targets so that helps you as an investor just like atonic jeremy was mentioning metrics is very important that you have indicators that can guide you to make the right decisions for your investment so you we have 169 targets very specific target so when you invest in a particular sdg goal in an enterprise that is related to an sdg goal you can be sure that you can know how to monitor what it will achieve through the target we have 244 indicators next slide please under the sdgs so it is important for you to know that the un sustainable development goals is not just for countries it's also to guide investment there's also what you call the united nations global compact principles and these are 10 principles the united nations global compact is actually designed for private sector enterprises and investment is to guide you in understanding that your investment will not violate human rights will not violate environmental principles will not oppress communities will not foster human trafficking so these un 10 principles can be used as an evaluation for your investment when you look at a company just like anthony jeremy mentioned when you look at a company you look at what it do they have a human rights policy do they have environmentally uh you know friendly policies or an environmental policy or information all these will guide you before you make your decision next is agenda 2063 and agenda 2063 is an african agenda that is that supersedes the un uh sustainable development goes but is regionally focused and agenda 2063 is very robust uh it's very strategic and it's very robust in its uh in its uh uh ideals and you can look at that because you need to understand and we would have to guide you and guide you in understanding how to navigate to the goals of agenda 2063. that tells you when 2021 so basically we're talking about 42 years from now there's been a road map that is clearly laid out which can give you strategic approach to your investments and so next slide please under the agenda 2063 and the un uh uh sustainable development goals you find cost strategies which includes inclusive growth job creation increasing agricultural production investments in science technology research and innovation one thing you will find out that has been created in the last just about the last decade is called stem science technology engineering and mathematics stem investments are just amazing if you put money in stem investments in africa that means enterprises that are geared towards science technology engineering and of course the m stands for mathematics which does which of course is also useful i can assure you you will have a guaranteed sustainable steady and high return investment next slide please part of the cost strategies i've mentioned that gender equality women-owned businesses are also part of the areas where you can put your investment in in in collaboration with donors they're very concerned about gender equality and gender investments are also increasing a lot in the region of africa then you have youth empowerment and of course provision of basic services i think antonio jeremy mentioned health and education nutrition and nutrition is linked to sustainable agriculture that is food production uh uh you know not just pro producing cassava but producing fortified cassava which can bring in new trends and can of course be used with children to enhance their quality of uh you know food intakes and then make them more healthy make them more productive to learn and so it's important water and sanitation let me tell you an interesting thing about water and sanitation coca-cola in in collaboration with certain donors in africa is investing over 30 billion dollars in water and sanitation up to small medium enterprises who are providing or producing water cans water filtration systems and so there are these very creative sustainable investments that you can partner with don't know just like atomic jeremy said you will do your due diligence in mapping out which donut is doing what in which country who is doing what where and how are they doing it we call it who is doing what where and how once you do that then you can see do their mission objectives match my own interests because we talked about mutual interest and co-creation donors have come to acknowledge that africa sustained economic growth is essential to global development and requires meaningful interactions with private sectors they are looking to interact with you and i think that should excite you and i next slide please let's talk about okay i want to talk about the type of donors i'm going quickly but you get uh you know you'll get a copy of the presentation i rounded up with what mackenzie global institute talked about there's 2.63 million dollars collective gdp as a 2020 in africa 2.6 trillion dollars you have 1.4 trillion dollars africa's consumer spending as a 2020. there's no place in the region of the world that matches that 1.4 trillion africa's consumer spending then you have 1.1 billion number of african households working age by 2040 that means 19 years from now you would have a 1.1 billion working working human capital that can be tapped into and to top it off 128 million number of african households who have discretionary income discretionary income to spend on consumer goods and brands and so that type of donors we have bilateral donors bilateral donors are basically public sector agencies that provide investments on behalf of a single donor country and they do that through grants and loans and so they're also looking for private investors and it ranges you may say do they are they're looking for small investors yes it ranges from you know a small amount of 50 hundred thousand dollars and much more but they also can accommodate a consortium i see one of the course questions is asking for a consortium of investors who come together interested in a country interested in a sector focused on a particular sustainable development goal and it aligns with the mission strategies and then they work with you to create together to create an investment that would meet uh both organizations or partners of interest so you have bilateral you have multilateral donors there are public sector agencies that accept contributions from multiple donor countries and they provide investments in terms of loans and grants even though they deal with governments but they still have opportunity for a private investor if you are into professional services this is an area you can tap into that you can tap into it through contracts so you can get a contract to provide a service or provide a product for which a multilateral a donor is investing in that country and you are guaranteed to be paid and to make your returns on your investment so multilateral agencies and there are platforms by which you can seek and search these opportunities next you have development finance institutions the development finance institutions they complement your investment because they give out loans to small medium enterprises to enhance development priorities and development ventures and so you can identify development and finance country uh finance institution that is based in a particular country you have in south africa you have in nigeria you have in kenya you have in ghana in each african country you have the dfis as they are called development finance institutions who if you do your due diligence and you express your interest they will guide and guide you into enterprises which they are supporting which your investment can increase their capacity to produce and to operate and thereby bring the high returns on to you next you have philanthropic organizations foundations traditionally they give out grants but now they are also going for social responsible investments so that's another opportunity for you to partner with donors next slide please and then this last four this last three rather you have multi-partner trust funds if you want a stable secured uh stress-free without any strings you can put your investment in multi-partner trust funds and they are very well established recognized you know with financial audit statements good leadership and management that we can help you identify and source and and your investment can be secured the same thing with development trust funds and then of course lastly you have impact invest investment donors impact invest investment donors means not only financial return but also looking at social and environmental returns to your investment next slide please next like key characteristics okay what are the key characteristics that govern this mutual interest i've mentioned one of it continuously it must be guided by the sustainable development ghost which is what we call the sdg 2030 agenda so it is important that you look into the sustainable development goals and see what what out of the goals which one actually attracts your interest or which one aligns with your area of interest of investment or industry of investment it must address core development problem the problem your investment that you're looking to partner with donald must address a core development problem or an opportunity it must also provide uh social environmental or economic gains which means it must solve a social and environmental or economic problem number four it must be market-based and what market-based means is that basically it has demand and supply for those products and services so if you're looking for an investment to partner with a donor you're looking at enterprises that they don't know is supporting it could be a non-profit enterprise but it does operate on a market-based model which means on demand and supply and so there is a return on investment both on the financial side on the social and environmental side it must align with country sector development priorities and there are national strategies for a country in each country in africa that really focuses on the sectors that you may be willing to invest upon so it would be good for you to look at these sector strategies and priorities and get our contact with them next slide please yeah it must identify it must be innovative of course we know the impact of technology and one of the uh industries that like i also need to mention is fintech fintech is also growing very uh tremendously in africa because 95 percent of africa now is is covered by mobile technology so you can absolutely reach even the rural communities and that's the interesting thing about africa with the extensive population the extensive threat the consumer demand mobile technology has now made it very easily accessible so if you are investing in an enterprise will be good for you to do your technology index analysis to see how is this business using technology because that is going to drive scope skill and impact and it does drive return on investment and wealth creation it must have high impact on target population particularly under self communities and populations and part of the underserved population is youth 55 percent of a population 45 to 55 percent of current and growing population in africa is between ages 15 to 35. you're talking of a growing youth population which of course gives you a longevity to your investment so if you're looking into an enterprise look at who are their customers what is their customer base and if their customer base is targeted to this on the sub population the youth population you have a secured sustainable steadfast and a high guarantee of a long-term investment strategy in focusing on vulnerable populations it includes shared resources risk and results that means when you invest with a donor you're you are sharing resources you are also sharing risk and you've had uh attorney jeremy mentioned that continuously minimizing your risk but you're also optimizing your returns which is the result aspect uh donors are usually looking for a leverage one to one but preferably one to three that means uh you know i thought they're looking to support your investment where you have a higher uh ratio one two three which means one thought for example if you're looking at a one million investment or even hundred thousand and the donor may supplement that maybe by thirty thousand so you have a one thirty thousand investment in that enterprise and it does increase your ability to increase your returns next slide please and i'm going very fast so that's to save time for questions uh and and you know and answers yeah i've talked about co-creation and of course uh on i want to emphasize on understanding donor value proposition and your own value proposition also it's very important to look at what is value to the donor and what is value to you if there is no congruence between their values and your value in terms of value proposition then there is no match and of course like i said there's no need to go further in that next slide please and give men insights which is very important and that's the question i always have people ask me how do we engage these donors first of all how do you find them you know you leverage connections and knowledge connections about uh true people linkedin is a very good avenue for you to identify those who are within these donor base professionals who are working within this donor base and you can start your engagement by appreciative inquiry by asking them some questions use your linkedin connection you can raise your linkedin to premium you'll find more donors are on that platform and then they express their mission strategies objectives you have corporations who have their corporate social responsibility investments strategies which you can learn from so that's one way to you know leverage your connections your connection network and the knowledge base you have number two do a desk research of donors mission priorities funding opportunities and country assistance strategies another way to engage them is to determine or define where do not funding whether it's right for your business and i mentioned that and the way you do that is to look at the value proposition of the donor the mission priorities of the donor and your own value proposition so that there is a match um this is very important and i think at an atomic jeremy mentioned this align your business plan with local development challenges national development challenges and sdg there is tremendous local uh capital human capital in africa and if you align your investment strategy plan to how a an industry that you invest in actually has co low cost capital you're going to have a high returns it's just simple economics and then of course you can engage by developing a one to two page letter of intent or inquiry to initiate communication and that's kind of a capsule on partnering with donors to leverage your investment to achieve a higher returns thank you so much great that was right right in the interest of time we do want to um thanks hi up for that because that was that was incredible and interesting time we're want to get to the q and a session you can go ahead online all righty yes in the interest of time we'll um we'll just go ahead and just do one question for now but if you do have uh any further questions you can send those to info at dot tv uh concerning this presentation or any you know whatever questions you may have for legal education so the question is and the question is what is the status of solar wind and geothermal power and which could help to make africa more green and less dependent on fossil fuels that's a great question um that's a great question primarily there is tremendous opportunity is the status of it is that they are doing some development and from a u.s standpoint this is important from u.s standpoint as tayo mentioned there are government resources that you can use and they will provide you funding with empower africa they are willing to give grant money to private enterprises to build solar projects in africa well you can write this out power africa they have been giving out millions to private companies to help them create a solar farm in africa same thing for for energy saying the same thing for for um all the other different energy aspects that you mentioned so so the opportunity is is absolutely astronomical we talked more about past investment titles talk about donor funding power africa is an aspect of somewhat of a donor funding they're giving out grants to it so the status of it is that is is alive and well and it's growing and needs to be more and that pertains to africa as a whole that's one of the benefits of africa it can leapfrog a lot of those things to go straight to renewable energy it can have the more renewable energy um efficiency efficient more than many many other countries you see a country like america is slowly going towards solar slowly slowly africa has opportunity as well as many other developed nations to take a leap frog and effort to be able to go to um those renewable energy resources that you mentioned so the status of it is growing there needs to be more public private partnerships idea of a public private partnership is that you're going you're you're partnering with the public sector that can be the government that can be uh public sector it can be can be tremendous the public can be the us government it can be the combination with the african government and in combination with the local chiefs because africa has a chieftaincy my first video i brought a chiefs on on um i brought a chief onto that one to show you how the chief have tremendous influence with africa unlike many other places they have somewhat of a dual relationship of governance they have the president and they have all those traditional individuals but they also have achievements they have an installment where they govern the local rules and regulations of their local village so they can give you land so that's a public private partnership you can do with the local chiefs and i mean the opportunity to do business in africa is absolutely tremendous i mean you name an industry africa has abundant have waters full of abundant have waters that are full of just fish seafood i mean they're minerals platinum lithium um gold diamonds and these are things that are that are everywhere i mean agricultural i mean there's opportunity is immense and also the retail sector of africa and i hope you all have have thoroughly enjoyed this webinar i hope you all have learned something from this and i hope we bring you some tremendous value and ty you can say something really quick yeah let me just add to the question uh as an answer and you mentioned yes there is power africa but also there are non-profit organizations in africa who are actually in the power sector who are looking for social responsible investments and you will invest in them just like uh uh jeremy mentioned do you do your due diligence that are highly profitable because there are products like solar lights solar lanterns that are needed and that are reaching rural areas where you have a higher population so your question about what is the state just the status is relating to scope scale and impact it is big and it's very open and it's it's open to medium and small investors and your small investment can actually make a high impact so that's a good area power africa is under the united states trade and development agency ustda you can read it and uh see what the criteria is and the opportunities that are there but we can also guide you once you uh you know the post uh conference to this and sending your expression of interest we can guide you and find out the relevant information that can give you more substantive data to guide your investments all right thank you all for coming we appreciate i'm individual comment i hope you are able to bring some value so thank you for coming and we'll be doing another invest in africa webinar in the coming months so thank you all i really appreciate it [Music]

Channel: Global Law Media

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Length: 90min 25sec (5425 seconds)

Published: Wed Jan 27 2021