Africa's First Digital Asset Fund
Africa's First Digital Asset Fund
'Africa represents the world's future and we believe that by 2025 digital asset investments in African security tokens will transform the economic landscape of Africa by enabling foreign direct investment, eliminating corruption, increasing transparency and security through the adoption of the blockchain in Africa.'
African Tokens ('The Fund') is an African digital exchange traded fund with an initial target size of $500 million that will act as an investment vehicle for international investors, by giving them a window into investment opportunities in Africa, through investment in security tokens issued by The Fund. The Fund will do all the necessary due diligence on behalf of the investor on projects that meet The Fund's stringent investment criteria. There are six critical sectors (See below) of the African economy that The Fund will focus on to achieve a balanced investment portfolio for its investors. The Fund is an investment vehicle that provides a gateway for foreign direct investment (FDI) into Africa, managed by fund managers with over 40 years of banking and financial experience as well as local knowledge of the African emerging markets. Traditional issues of transparency, accountability, efficiency and security of transactions, associated with investing in Africa, are completely eliminated by The Fund utilising blockchain technology as the platform for its operations. Once potential investors meet the KYC / ML requirements of The Fund, they become eligible investors in The Fund's security tokens, which are not only secured by real world assets, but are also discountable in the secondary market created on the digital exchange.
The emphasis in the world is now on renewable energy and even though Africa is still very much dependent on carbon fuels for its foreign currency earnings, we believe that future investment will be in renewable energy. The Fund will focus on renewable energy to allow its investors benefit from the enormous growth potential of this sector in Africa.
Africa is facing an infrastructure gap estimated by the African Development Bank (ADB) to be in the neighbourhood of $65-105 billion. Therefore investment in infrastructure in Africa is obviously a major area of focus for The Fund. Our investors through our security tokens targeted at infrastructure, will be able to take advantage of this investment opportunity.
Real estate is a lucrative growth area in Africa with the rising African middle class and the rising development of 'smart cities' across Africa. Through The Fund's security tokens in real estate our discerning investors will have the opportunity to invest in this fast growing sector of the African economy.
The future of African agriculture is in Africa developing its own commodity exchanges and adding value to its agricultural products. To this end The Fund is committed to creating a network of 'smart warehouses' across Africa that will provide the necessary infrastructure that Africa needs to increase production and add value to its agricultural produce. Our investors will be able to invest in this through agricultural security tokens issued by The Fund.
The majority of the African population is young and for them fintech is already a way of life and their future. To buttress this fact 2019 Nigerian fintech company Interswitch attained unicorn status after Visa acquired a minority stake in the company. In March 2021 Nigerian Flutterwave Inc after raising $225 million was officially given the prestigious unicorn status as well.
African contemporary art is an up and coming investment area that can take advantage of blockchain technology and crypto assets to offer investors security tokens that take advantage of tokenisation to make African contemporary widely accessible as an investment option. Ben Enwonwu's "Tutu" painting, often dubbed the "African Mona Lisa," was sold in 2019 for $1.6 million.
Security tokens issued by The Fund will be backed by real world assets and can be discounted in the secondary market through the digital exchange. Security token are seen as the next blockchain wave and are predicted to reach a market of €918 billion by 2026
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 as a digital asset fund for Africa becomes a one stop solution for investment in Africa.
The Fund utilises 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.
The Fund commissions its own feasibility studies by partnering with world class international consultants to ensure the viability of projects before investment takes place, thereby ensuring the bankability of its projects before issuing security tokens to its acredited investors.
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 has been guaranteed and made future proof by the government. The Fund will also take advantage of the World Bank's political risk insurance services.
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. As well as employing various investment banking hedging techniques to mitigate FX risk.
The Fund will develop its own ecosystem of closely associated companies in the investment process, to ensure that all parties associated with projects undertaken by The Fund are not only fully qualified companies, but the best in class with proven track records, when it comes to the delivery and execution of projects in all the six sectors that The Fund will focus on.
Th Fund will endeavour to ensure that the projects it finances will meet acceptable environmental, social, and governance (ESG) standards, in addition to meeting the objectives and profitability criteria of The Fund.
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