Telecoms, rather than tech startups, are prioritised for investments in Africa because of the concrete factor, Gunnar Stork, director of equity and mezzanine in African and Latin America at Deutsche Investitions-und Entwicklungsgesellschaft (DEG), believes.
HumanIPO reported yesterday Ernst & Young’s view on telecoms as the preferred investment industry rather than tech startups.
Speaking to HumanIPO, Gunnar Stork said: “We are looking more towards investing in those sectors we can understand and assess.”
Despite its disinterest in technology investments at the present stage, telecoms are “high on [the] agenda” of the DEG, he said.
The leading investment sector of financial banking is prioritised above investments in technology due to its clear nature, Stork explained.
“We feel we understand it better,” he told HumanIPO.
He agreed the company will definitely continue to invest in telecoms, with technology, though it may be attractive to other investment companies at a later stage, contrary to DEG’s focus.
“We’re simply not made for that,” he said.
Stork partook in a panel discussion on Designated Financial Institutions (DFIs) at the African Venture Capital Association (AVCA) Alpha conference in Cape Town, South Africa yesterday (Wednesday).
