We have created a short overview on data room basics that will help early stage founders raise faster. When you reach the due diligence stage with an investor having a top data room prepared will come in handy, it will save both of you time and is a good basis to build on:

The key missteps that cost them time and potential investors are: - No clear proposition - Unclear which type of funder to approach - (eg fish farmer looking for funds from VC - clear mismatch) - Misunderstanding on what materials need to be ready when going into a fundraise

We had the pleasure of chairing a panel discussion at the Alternative Investments Conference by @CFASocietyEA discussing the topic what pitfalls to avoid when fundraising. #AIC2023 #CFASocietyEastAfrica #investment

Remittances have become a major driver of growth and consumption smoothing in Nigeria. They exceeded $25bn in 2018, representing 6.1% of GDP and 83% of the federal government’s revenues. (Afriexim, 2022) #venturecapital #africa #growth #investment #remittance #trade #consumption

Remittance stabilizes balances of payments, keeping current account deficits under control even with negative trade balances and reduces the risk of major current account reversals coming with a sharp decrease in the stock of international reserves. (IMF, 2005; World Bank, 2021b)

Empirical studies suggest that the effects of a negative international reserve shock on current account reversals is less severe when remittances exceed 3% of GDP (Bugamelli and Paterno, 2009; Bahadir et al, 2018), which is the case in most African countries.

Strong continued remittance inflow is strengthened by the labor shortage in developed economies and has a positive impact on countries' resilience.

The continent offers strong returns, given the risks associated with an emerging market investment profile.

Remittance continues to outpace FDI in Africa, stabilizing its economies as more money flows into the continent. The continued strong economic growth and the slowdown of other previously hot emerging markets make Africa a key region for investments.

We hope this dialogue between regulators, banks and startups will result in a robust regulatory framework for startups to use for launching their products and services in the Moroccan market. #venturecapital #africa #banking #digitalisation #credit #regulations #transformation

What does it mean for the VC ecosystem? These are the first baby steps in Morocco towards opening up a closed and bank-dominated Fintech sector. The portal will allow for more transparency regarding product and license requirements in the country.

AMMC Fintech Portal The Moroccan Capital Market Authority (AMMC) launched its Fintech portal to “support market players in their projects and promote the development of new technologies that will help transform the financial sector.”

These are the regulatory happenings in other emerging tech markets in Africa, such as Morocco - Part 2:

What does it mean for the VC ecosystem? This is great as we welcome introducing standards for digital lenders, which will likely result in shutting down shark lenders. #venturecapital #africa #banking #digitalisation #credit #regulations #transformation

The Central Bank of Kenya also introduced a cap on interest rates and enforceable measures to maintain data privacy.

Kenya Updated Lending law Digital credit providers in Kenya will have to disclose their sources of funds and get a license from the country’s monetary authority to ensure that lenders are not engaging in financial crimes like money laundering.

Remote KYC integration helps Fintechs to scale and onboard customers online more efficiently and at a lower cost.

What does it mean for the VC ecosystem? Fintechs in Egypt still need to collect physical data in person, which presents obstacles to adopting digital financial services in the country.