TechCabal Daily – What questions are African investors asking their portfolio companies?

The African continent will take a huge economic hit, with the World Bank predicting that the region’s economy will contract by as much as 5%. Despite experiencing a decent first quarter in 2020, the region will find that fundraising will be difficult moving forward. 

TechCabal’s Alexander Onukwue says in this article that investors are having conversations with portfolio companies on all the tough fundamental questions.

Here’s an except from his article: “Providing emergency runway support is not an unthinkable course of action. In times of crisis, the most important thing is ensuring that companies have enough runway to be comfortable through the projected end of the crisis”
 

The fund, which targets businesses with high-growth potential in Africa will invest in businesses that are majorly owner, or run by women. 

Established in 2014, It will provide capital of between two and five million dollars to high potential mid-sized companies in 6 countries: Nigeria, Ghana, South Africa, Lesotho, Zimbabwe and Zambia.

Read all about it here.

What financial measures can ease Nigeria’s extended lock-down?

The extension of Nigeria’s 14-day lock down has brought economic activity to a crawl. For a country with a lot of small and medium business owners, the economy will feel the bite.

Although the Federal government has announced plans for an emergency fund, Techpoint says there are three extra measures the country can take to ease the difficult situation. 

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The fund is going to help workers on its platform who will be unable to help as a result of the lock down in South Africa. This initial injection of funds will enable the workers to receive weekly financial support and ride the tide until the government declares an end to the lock down.