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Day Two: The Funding Equation – Africa Tech Festival’s AfricaIgnite unpacks top tips for start-ups

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8 months ago

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Africa Tech Festival

Chemistry, then brain power and proof of concept, the key to unlocking investment

JOHANNESBURG, South Africa, November 17, 2023/APO Group/ — 

Delegates at Africa Tech Festival 2023 (https://apo-opa.co/473ZEif) in Cape Town were given a master class on the dos and don’ts of fundraising on Wednesday 15 November, during several sessions at AfricaIgnite, the festival’s dedicated start-up zone. And surprisingly, establishing a good rapport with potential funders came out as the top tip.

Africa is an intellectual property factory – DERRICK ASHONG, CEO, TBTM

Said Eric Osiakwan of Chanzo Capital: “Investors look for chemistry and that comes from your storytelling.  Ask yourself, how do I make a connection with a person which is less transactional? Tell them what you are doing and why you are doing it. After the initial connection, the rest becomes easier. But you have to tell your investor something that sticks out and stays in their mind, something unique.”
 
Joining the list of reasons why investors say “no”, is not having enough information at hand. “Last year I spoke to over 100 start-ups who complained they were just not getting funding. I went on a road show to find out why, and investors say they just aren’t getting enough information during pitches. You have one shot in that room to present. There is no harm in, before your pitch, sending an email to see what they require from you,” said Lara Rosman of UVU Accelerate.
 
Keshni Morar, of Investable outlined the different types of funding. “Angel funders usually take the first level of risk, so they expect a lot, while VCs will first have a talk with LPs [limited partners] to see if there is potential for growth. Private equity investors look for a company that is stable, is growing and has a good income. The important thing is you have to choose the appropriate fundraising for the stage that your company is in.”
 
Sherif Nessim, of Jedar Capital, says timing is imperative. “You need to know when to start raising funds, what type of equity and value. And don’t raise more than you need. Also consider what amount you want to raise and how much equity you want to give away.”
 
Painting a picture for tomorrow requires investment today
Africa’s burgeoning creative economy was also spotlighted on Wednesday, with Felix Orevoghene Alaita, noting that a lack of funding for Africa’s creator economy is due to investors not believing in content made in Africa.  Alaita, who is a retired army colonel, now turned tech start-up founder who also owns a creative hub, movie, and music studio in Nigeria, said: “The value you bring to government coffers is minimal. We must push to make the industry more visible.  We can’t rely on government to assist so we need to align ourselves to the right people.”
 
But another hurdle for Africa’s creative economy to overcome, is convincing those with the deep pockets to see this sector as a viable and sustained industry that can deliver returns.  “The creative industry is created by perception like how successful it will be, potential income… So, it’s difficult for people to believe in this. It’s not like a tangible thing like a toll road that you invest in,” said Derrick Ashong, CEO of TBTM.
 
During the panel discussion, Funding Gaps in the African Creator Economy, Ashong said all aspects of Africa’s creator economy are underfunded. “What you are in fact selling is your intellectual property. There’s a lack of capital overall because there’s a lack of understanding that investors are investing in intellectual property,” Ashong said.
 
Guy Kamgaing, StarNews Mobile CEO, agreed: The essence of entertainment comes out of Africa. Once you understand just how much is coming from Africa, you’ll realise we have to create a lot of instruments (to highlight the industry).”
 
Ashong suggests that African creators are too “hyper-local”. “One of the biggest missing elements, is the inability to create content that appeals globally. We have to make it more relatable, so we can aggregate enough audiences. You can’t tell me African creators don’t have the wherewithal to stand up globally …. Africa is an intellectual property factory.”
 
Kamgaing countered that it was important for creators to first make money in Africa before doing so abroad. “They need to make money in Africa first. Americans make their money there and the Koreans make their money in Korea,” he said.  
 
Africa Tech Festival continues Thursday 16th November with yet more incredible content including the exciting AfricaIgnite Pitch Competition, which will see one lucky winner make their way to the USA to battle it out for USD 1 million investment in the final of the Pegasus Start-Up World Cup.

For more information about Africa Tech Festival, please see website here: Africa Tech Festival 2023 – The Home of AfricaCom & AfricaTech (https://apo-opa.co/473ZEif)

View all ticket options for Africa Tech Festival, including start-up passes, here: https://apo-opa.co/49mTtau

Distributed by APO Group on behalf of Africa Tech Festival.

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Premier Invest Highlights Milestone Oil & Gas Financing Partnership with Shell at Invest in African Energy Reception in London

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17 hours ago

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July 12, 2024

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African Energy Reception

As an African-owned investment banking and advisory firm, Premier Invest is aiming to bridge Africa’s oil and gas financing gap through strategic partnerships in the sector

LONDON, The United Kingdom, July 12, 2024/APO Group/ — 

Rene Awambeng, Managing Partner at investment banking and advisory firm Premier Invest, outlined Africa’s current oil and gas financing gap and strategies for unlocking global capital at the Invest in African Energy reception -organized by the African Energy Chamber (www.EnergyChamber.org) – in London on Thursday. Last month, Premier Invest signed a milestone agreement with Shell to enable access to financing for oil and gas projects across the continent.

The agreement to co-finance and originate oil and gas agreements in Africa aims to drive growth in the oil and gas sector across the continent

Under the strategic partnership, the two companies will collaborate to identify and co-finance oil and gas transactions in Africa that have the potential to generate significant returns, while creating value for local communities and economies.

“The agreement to co-finance and originate oil and gas agreements in Africa aims to drive growth in the oil and gas sector across the continent. We will work together to identify and evaluate potential opportunities in the oil and gas market and leverage our respective expertise to fund projects that have the potential for significant returns. This is a significant step forward in our commitment to support the growth of the sector,” said Awambeng.

The partnership serves to address the persistent lack of FDI on the continent – in which Africa receives only five percent of global investment – placing African countries at a disadvantage when it comes to establishing requisite infrastructure to produce refined petroleum products and increase power generation and distribution capacities. According to Awambeng, 50% of oil product consumption in Africa is met through imports, despite Africa being a net crude oil producer.

“To address these finance challenges, we have put together an African-owned and managed investment banking firm to offer a range of financial advisory services supporting clients across industry to invest in small, medium and large-sized projects… The continent lacks funds to finance its oil and gas projects, as well as needs technology to manage its oil and gas industry,” said Awambeng.

Distributed by APO Group on behalf of African Energy Chamber

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Top 5 Reasons to Attend Angola Oil & Gas 2024

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18 hours ago

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July 12, 2024

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AOG

AOG 2024 serves as Angola’s premier energy event, providing unparalleled opportunities for international investors and stakeholders to gain access to the oil and gas market

LUANDA, Angola, July 12, 2024/APO Group/ — 

Angola’s oil and gas industry is growing rapidly, with a $60 billion investment pipeline planned for the next five years, a 2025 limited tender on the cards and industry reforms offering improved fiscal and contractual terms. The county’s premier industry event Angola Oil & Gas (AOG) connects international stakeholders to the market, serving as a bridge between foreign players and Angolan projects.

AOG is the largest oil and gas event in Angola. Taking place with the full support of the Ministry of Mineral Resources, Oil and Gas; national oil company Sonangol; the National Oil, Gas and Biofuels Agency; the African Energy Chamber; and the Petroleum Derivatives Regulatory Institute, the event is a platform to sign deals and advance Angola’s oil and gas industry. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.

Strong International Focus

In recent months, Angola has been strengthening cooperation with various global partners to support oil and gas development. Recent deals include with Italy, the UAE, South Korea, Ivory Coast and many more. These deals and future collaborations are expected to drive project development and innovation in Angola while supporting global demand through Angolan exports.

The 2024 edition of the conference builds on this to bring new players to the market while promoting projects, partnerships and potential investment opportunities. In addition to local and regional delegates, AOG 2024 will feature the participation of delegations from China, the UK, the UAE, Germany, Portugal, Brazil and many more. International companies are invited to participate in the event and seize new opportunities in Angolan oil and gas.

Access Upcoming Projects

Last month, Angola’s national concessionaire for the oil and gas industry the National Oil, Gas & Biofuels Agency (ANPG) announced a series of measures that aim to support crude oil production in Angola. This comes as the country recently awarded oil and gas companies Etu Energias, Effimax Energy and Grupo Simples Oil a new concession for Block CON 8, stipulating an exploration phase lasting five years from the signing of the contract.

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Angola is enhancing cooperation with global players, including IOCs such as Chevron, TotalEnergies, Azule Energy and ExxonMobil, to bring new projects online and maintain hydrocarbon production above 1.1 million barrels per day through 2027. A key component of AOG 2024 is unparalleled access to upcoming projects. Attendees will be given exclusive access to the latest requests for proposals, tenders, market trends, policies and regulations shaping the sector.

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Drive Real Investment

Each year, AOG cements itself as the platform of choice for partnerships, collaborations and multi-billion-dollar deal signings. In 2023, seven industry-advancing deals were signed, laying the foundation for collaboration, market growth and future prosperity. In 2024, this trend is expected to continue as foreign companies travel to Luanda to engage with Angolan companies. The conference’s multi-track program covers the entire oil and gas value chain, providing insight into investment opportunities and strategic projects.

Participate in Exclusive Networking

The AOG 2024 conference serves as an opportunity for local, regional and international delegates to collaborate and discover new avenues for investment. Delegates can connect with top energy investors and executives – from operators, IOCs, NOCs and independents – as well as government officials, industry innovators and financiers to expand their professional network.

The event offers extensive opportunities to network and build meaningful business relationships, including exclusive networking breaks and lunches, the closing Networking Cocktail as well as the Gala Dinner and Awards which recognizes the companies pioneering the oil and gas industry in Angola.

Help Fuel Development

With the recent commencement of construction at Angola’s first integrated economic zone as well as its first aluminum industrial park, the country is on track to accelerate economic diversification and sustainable development. Apart from oil and gas, AOG 2024 is poised to set the benchmark for development in Angola while facilitating a strategic investment hub for various sectors in the country’s public and private sectors.

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Angola continues to provide great opportunities for international investors to develop energy projects that serve local and international energy demand. AOG 2024 targets key initiatives in the country including a heightened exploration drive, gas monetization, local content development and renewable energy and will clearly show Angola’s ambition and future plans for development.

Distributed by APO Group on behalf of Energy Capital & Power.

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Liberia Showcases Upstream Investment Opportunities at Invest in African Energy Reception in London

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19 hours ago

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July 12, 2024

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African Energy Reception

Ahead of a new licensing round, Liberia is offering incentives for early investors, coupled with extensive 2D and 3D seismic data in its Liberia and Harper basins and a working petroleum system previously established by global majors

CAPE TOWN, South Africa, July 12, 2024/APO Group/ — 

Kicking off the Invest in African Energy (IAE) reception in London on Thursday, Marilyn Logan, Director General of the Liberia Petroleum Regulatory Authority (LPRA), showcased Liberia’s available oil and gas blocks and upstream investment opportunities. The reception served to connect major technical and financial partners to Africa’s energy sector ahead of the African Energy Week: Invest in African Energy conference in Cape Town this November, organized by the African Energy Chamber (AEC) (www.EnergyChamber.org).  

Global investors have been clamoring to Africa’s frontier markets in recent months, with countries like Namibia, Mauritania and Mozambique attracting sizable oil and gas CapEx spending, coupled with a renewed exploration focus in West Africa. Liberia represents a proven petroleum system supported by extensive reprocessed 2D and 3D multi-client seismic data in its Liberia and Harper basins.

“Liberia stands out as a new and exciting destination for oil and gas exploration. Positioned strategically on the West Africa Transform Margin, Liberia shares geological similarities with the Jubilee field in Ghana and [discoveries] in Guyana. We are on the verge of a new decade realizing untapped potential in West Africa, and Liberia is ready to play a pivotal role.” 

Our round is expected to attract serious investors, with Liberia offering incentives for early investment and ensuring the yield of substantial returns

“Many years ago, many thought Namibia was an oil man’s graveyard…Today, there are even more prospects in countries like Liberia. The belief coming out of [London] drove exploration in places like Namibia – Liberia could be a replica of that,” added NJ Ayuk, Executive Chairman of the AEC.

Logan highlighted the role of majors ExxonMobil and Chevron in confirming the presence of a working hydrocarbon system, which has been supported by recent seismic surveys and data reprocessing that show promise of significant reserves. In 2021, the country opened a direct negotiation process for 33 offshore blocks in the Harper and Liberia basins, with plans to launch a new round later this year. 

“Liberia’s upcoming 2024 licensing round provides the opportunity to secure prime exploration blocks. Our round is expected to attract serious investors, with Liberia offering incentives for early investment and ensuring the yield of substantial returns,” said Logan.

In addition to its prospective hydrocarbon resources, Liberia offers a competitive fiscal regime, stable governance and a conducive operating environment. According to Logan, the country has established a fee structure that incentivizes and rewards oil and gas investors with appropriate returns, while still ensuring Liberia retains social and economic benefits from oil and gas extraction activities.  

“On the policy side, the Liberian government has implemented a robust oil and gas program to ensure a conducive environment for oil and gas investments, including a streamlined regulatory process and stable and democratic political environment,” she said. 

“We have to keep an enabling environment – when we enable you to put in money and finance projects, then we both win. The idea of resource nationalism has to go, and also the demonization of the energy industry,” stated Ayuk.

Distributed by APO Group on behalf of African Energy Chamber.

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