Summary
The article discusses the challenges faced by African start-ups due to a lack of clear exit opportunities for investors, which makes it difficult to attract investment. It suggests creating faster and simpler processes for listing on stock exchanges and more transparent mergers to encourage investment in African tech companies.
Key Facts
- African start-ups often seek financing abroad due to unclear exit strategies in local markets.
- Initial public offerings (IPOs) are rare in Africa, which discourages investors.
- Exits primarily occur through trade sales, which are slow and unpredictable.
- Many African start-ups are funded and sometimes owned by foreign entities.
- Local stock exchanges have limited activity outside major companies.
- Proposed solutions include creating growth IPO lanes and streamlined regulatory processes.
- South Africa is suggested as a leader in reforming investment structures due to its strong financial markets.
