Investing In Africa On The Blockchain
Investing In Africa On The Blockchain
'Africa is the future and our belief is that by 2025 investments in African digital assets will transform the economic landscape of Africa by enabling foreign direct investment and curtailing corruption through the adoption of blockchain technology as the platform of choice for investments coming into Africa.'
African Tokens ('The Fund') is an African digital asset fund with an initial target of $500 million that will act as an investment vehicle for international investors, by giving them a window into investment opportunities in Africa, by investing in security tokens, issued by The Fund. The Fund invests only in projects that meet The Fund's stringent investment criteria. The Fund focuses on six sectors of the African economy ranging from oil and gas to African art, in order to achieve a balanced investment portfolio for its clients.The Fund is a gateway for foreign direct investment (FDI) into Africa, managed by fund managers with over 40 years of banking and financial experience in the African emerging markets. Traditional issues of transparency, accountability, efficicency and security of transactions, associated with investing in Africa, are completely eliminated by The Fund employing blockchain technology as the preferred platform for its operations. Once potential investors meet the KYC / ML requirements of The Fund, they become accredited investors, eligible to invest in The Fund's security tokens.
Even though the emphasis is now on renewable energy Africa is still very much dependent on carbon fuels for its foreign currency earnings and it will take some time to make the transition to renewable energy. The Fund will gradually over time invest more in renewable energy.
Africa is facing an infrastructure gap estimated by the African Development Bank (ADB) to be in the neighbourhood of $65-105 billion. Therefore infrastructure in is obviously a major investment focus for the Fund.
Real estate is a lucrative and growth area in Africa because of the rising African population and the general shortage in housing across Africa.
The future of agriculture is in Africa developing its own commodity exchanges and adding value to its agricultural products. To this end The Fund is vested in creating a network of smart wharehouses across Africa.
The majority of the African population is young and for them fintech is already a way of life and their future. The Fund sees fintech as an important component of African development moving forward.
African Art is an up and coming investment area that can take advantage of blockchain technology and tokenisation to offer investors in Africa a way of diversifying their African portfolios as well as increasing the value of their investments.
The Fund commissions its own feasibility studies by partnering with top class international consultants to ensure the viability of projects before investment takes place, thereby eliminating the usual 'unbankabilty' of projects associated with Africa.
The Fund mitigates political risk by focusing its investments on the private sector and on government projects under a public private partnership (PPP) arrangement, that have been guaranteed as 'future proof' by the government. As well as taking advantage of the World Bank's political risk insurance.
The Fund manages FX risks by investing in exports that generate foreign currency through earnings and by investing in local projects that have sufficient local cash flow to mitigate any possible foreign exchange risk.
The Fund employs its collective local financial, economic and political experience and knowledge of Africa, spanning over forty years to ensure the success of its projects across the whole of Africa.
Security tokens issued by The Fund will be backed by the underlying assets in The Fund's investment portfolio, ranging from real estate, power, renewable energy, infrastructure and transportation assets, across Africa.
The Fund uses an 'integrated approach' to investment to ensure that all parties associated with the projects The Fund undertakes, are not only qualified but best in class, with a proven track record when it comes to performance.
The Fund by issuing security tokens to the client guarantees the liquidity of this investment, because the security tokens issued are discountable on the secondary market of the digital exchange.
The Fund being a digital asset fund makes it extremely easy for any investor anywhere in the world to invest in Africa, and to do so with ease. By avoiding the traditional costs, lack of information and risks associated with doing business in Africa, African Tokens becomes a one stop solution for investing in Africa.
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