Overseas investment interest is slowly picking up confidence as African telecommunication success stories grow, panel contributors at the African Venture Capital Association (AVCA) Alpha conference in South Africa revealed.
HumanIPO reported yesterday on the panel discussion regarding the South African investment model as a possibility to be replicated for other African countries at the AVCA Alpha conference in Cape Town this week.
During the discussion William Jimmerson, executive director at Musa Capital, described the risk taken by telecommunication operator MTN in investing in Uganda years ago as “crazy” according to stock market analysts.
However, its success led to further expansion across Africa, for example in Nigeria, where it now the biggest operator.
Speaking to HumanIPO, Jimmerson agreed confidence in African markets is growing, with reference to technological project investment.
With the expanding investment in countries other than South Africa, Gerben Dijkstra, investment principal at Investec Asset Management, believes the “very large platform helps to assess risks”.
Infrastructure, or rather the lack thereof, is generally viewed as a major challenge.
Though Jimmerson acknowledged Africa “requires a lot of infrastructure”, he also pointed to the successes of telecoms across the continent as testimonies of success.
“It is clear to me that the African story is real,” he said, adding technology in Africa is a “core industry”.
