Ventures Platform, an early-stage venture capital fund investing in innovative startups across Africa, held the second edition of its Africa Prosperity Summit on Friday, 15 November 2024, in Lagos, Nigeria. The invitation-only Summit brought together over 150 Pan-African and global investors, venture fund managers, family offices, development finance institutions (DFIs), fund of funds, Limited Partners and key ecosystem players actively investing in Africa.
This year’s theme “Funding the Next Billion: Africa’s VC Investment Landscape in a Post-ZIRP Era”, served as a call to action for global and local investors, entrepreneurs, policymakers, and thought leaders to reassess opportunities in emerging markets amidst rising global interest rates and economic shifts. Africa, with its dynamic entrepreneurial spirit and growing youth demographic, presents significant investment potential. However, realising this potential requires a deep understanding of local contexts and a commitment to fund innovations, which the 2024 Africa Prosperity Summit sought to address.
Kicking off the Summit with a presentation on funding the next billion and targeting non-consumption, Kola Aina, Founding Partner, Ventures Platform, stated, “Africa’s massive population boom is happening at the same time global venture capital is on a decline. Since the post-COVID peak of venture capital investments in 2021 -influenced by the ZIRP era – global venture capital flows have declined by 70%. The situation in Africa is no better – Africa has experienced a 67% decline in venture capital funding, despite its requirement of 10x more capital to address infrastructure gaps and non-consumption and be at par with Asia in terms of VC investments. As a result, Africans are simply unable to consume the goods and services that they need, talk less of want. If we do nothing about this today, by 2050, the 1 billion Africans that will be born – will end up being chronic non-consumers.
He continued, “At Ventures Platform, we believe that by investing in the right kinds of entrepreneurship and innovation, we can produce two powerful outcomes – high quality jobs that will drive up incomes across Africa, and scaling up affordability and accessibility to products/services for millions of people across Africa. The combination of these two powerful forces is an effective way of driving up consumption across Africa.”
Aina went on to admonish guests to leave Africa Prosperity Summit inspired and committed to the work that will shape Africa’s future.”
This year’s edition brought together an outstanding lineup of speakers including Efosa Ojomo, Director of Global Prosperity at the Clayton Christensen Institute; Charlie Robertson, Head of Macro-strategy at FIM Partners; Chirantan Patnaik, Director of Venture Capital at British International Investment; Marieme Diop, VC Regional Head (Africa) at the International Finance Corporation (IFC); Eric Sippel, Founder, Sippel Farb Family Office; Anwar Harris, Executive Head, Investments, Standard Bank Group; Haresh Aswani, Managing Director at Tolaram Group; and Khaled Ben Jilani, Senior Partner at AfricInvest.
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Delivering the keynote address, Efosa Ojomo highlighted Africa’s potential as the modern investment frontier, drawing parallels to historical transformations in global economies. He emphasised how venture capital can accelerate market creation on the continent, stating, “Venture capital is designed to de-risk an economy – or at least, a sector. Unlike other financial vehicles like private equity or bonds, VC takes on the highest risk. In Africa, where raising funds for critical infrastructure is particularly challenging, venture capital must go beyond funding to actively building entrepreneurial ecosystems in the early stages.”
Ojomo concluded by urging attendees to reflect on their commitment to accelerating Africa’s prosperity beyond the summit.
In the second keynote by Charlie Robertson, the Macro-strategy expert provided a comprehensive analysis of global macroeconomics and its impact on investment and industrialization. Engaging investors, fund of funds, startup founders, and policymakers, he explored the risks, challenges, and opportunities Africa faces in comparison to other regions.
He said, “As Africa charts its path to prosperity, the critical levers of education, electricity, and fertility rates will define its economic trajectory. Countries like Egypt, Ethiopia, and Nigeria are already making strides with central bank policies that have corrected currency misalignments, paving the way for current account improvements and reduced investment costs. With fertility rates beginning to decline and the potential for service-led growth through affordable solar power and advanced connectivity, Africa is poised to leapfrog traditional industrialization barriers. This is a pivotal moment for investors to recognize the continent’s unique opportunities and actively shape its future prosperity.”
Robertson concluded his presentation by advocating for continued investment in Africa.
During the Summit, Ventures Platform also launched its inaugural ClimateTech White Paper titled “Innovating for a Sustainable Future: Harnessing Venture Capital and Startup Entrepreneurship to Combat Climate Change in Africa”. The landmark paper which was launched by three key drivers – Urgency, Climate disparity, and Opportunities for VCs and Startups, examines the roles of venture capitalists and startups in climate change mitigation and adaptation. It also provides a comprehensive guide for non-climate VCs and entrepreneurs, including the development of a proprietary framework for a coordinated climate response in the African tech sector.
In an engaging Q&A session, Kola Aina, Convener of the Africa Prosperity Summit, hosted Haresh Aswani, Managing Director – Africa of Tolaram Group. Aswani shared insights into how Tolaram has successfully transformed Africa’s non-consuming population into active consumers, detailing the group’s strategic approach to market dominance. He also discussed Tolaram’s optimistic vision for Africa’s future and the opportunities it holds.
The summit featured other impressive sessions and showcased a line-up of venture experts across panel topics that were much aligned with their leanings. Some of these sessions delved into balancing the high-risk, high-reward nature of startup investments on the continent, analysed Africa’s economic evolution, frontier markets – with a focus on Africa’s underinvested markets poised for rapid growth, gender-lens investing, navigating partnerships between Japan and African markets, and unique investment opportunities outside Africa’s big four markets with a specific focus on Francophone Africa.
Bringing the summit to a successful close, Dotun Olowoporoku, Managing Partner, Ventures Platform and Co-Convener of Africa Prosperity, remarked, “The conversations at this year’s summit have ignited a movement dedicated to long-term strategic support and accelerated growth across the continent. By bringing together some of Africa’s visionaries and change-makers, we are boldly reshaping the future of our economies and driving innovation that will unlock unprecedented opportunities for Africa. The Africa Prosperity Summit embodies our vision at Ventures Platform to position Africa’s start-up and Venture Capital industry at the forefront of global economic discussions. I am confident that key stakeholders are now empowered not only to adapt to the changing economic landscape but to unlock new markets and unprecedented opportunities for growth.”
Since launching in 2016, Ventures Platform has funded over 90 startups, with at least one in every region of the continent and across various sectors. Many of its startups are category leaders in fintech, healthtech, and insurtech.
