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Investing

The Power of Investing

Kevins Jerameel

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What is investing? Investing is a process through which you make your money work or to grow or appreciate for a long-term financial goal. One author of business books observed, “Rich people see every dollar as a seed that can be planted to earn a hundred more dollars which then can be replanted to earn a thousand more dollars. Investing is a process: it is a journey.

Life is all about investing. There can never be financial freedom without the power of investing. Investing is the ability to multiply your capital assets. It is to spend money with the expectation of achieving a profit or a material result by using other financial vehicles like commercial ventures, property or shares.

Investors are smart. If there is a time when there are unique financial opportunites that time is now. Smart people use asset finance to advance their lives and business forward. When your money is put in motion through business and investing, you create an opportunity to making more money. Money has more value when it is working for you. Save with an intention to invest for it has the greatest return.

When you have a big mind, you will invest your money by putting it into motion. Learn the secret of sending out your money to the world and ensuring that it comes back with a multiplying effect.

The reality of the matter is that money reproduces itself more quickly as you are willing to assume more risk. The higher the risk, the higher the return. Robert Kiyosaki, author of Rich dad, Poor dad, observed, “Often, the more money you make the more money you spend. That is why money does not make you rich but assets will make you rich. “Cash in the bank is nothing, you must invest in assets. An investor is focused on increasing his asset base. A person who is risk averse is conscious of increasing only his savings.

Investors have a different mindset they have a high appetite for asset acquisition than for having money alone. They do understand verily that the more they acquire assets; the assets will work for them and generate more money than they would ever need. Invest heavily in asset acquisition in order to secure your financial future.

When making an investment, ask yourself these questions;

  1. Will I get my money back? {risk}
  2. How quickly will I get it back? {Velocity]
  3. What is the expected yield or return on my money? {reward}

Based on this criteria and evaluation, you can make an informed investment decision. There are two important rules for investing. These rules are so simple that people fail.

Rule no.1: Never Lose Money.

Rule no.2: Refer to Rule Number 1

Pulling away money for investing is very important if you are going to achieve financial freedom. What is investment? Investment money is: money reproducing itself, money coming to you not away from you. Money coming from other people. Money working for you.

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Companies

Africa’s Most Funded Startup to Expand its wings to West Africa After Raising $30M Series B Funding

Kimani Patrick

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Twiga Foods' Co Founder and CEO Mr. Peter-Njonjo

Kenya’s fresh farm food distribution company and Africa’s most funded startup, Twiga Foods, is planning to expand its wings to West Africa – a plan that comes after the startup acquired $30 million funding from lenders and investors led by Goldman Sachs.

In the deal which was inked on Friday and announced on Monday, Twiga Food raised a $6.25 million convertible debt from Overseas Private Investment Corporation (Opic) and the Switzerland-based Alpha Mundi and $23.75 million in equity from Goldman Sachs, The World Bank’s International Finance Corporation (IFC), private equity firm TLCom Capital and French investment company Creadev.

In a statement, Twiga Foods said “the Series B will fund the continued development of Twiga’s proprietary technology and logistics assets to support the roll-out of its distribution system and lay the foundations for expansion into other cities on the continent.”

“Goldman Sachs is getting a stake and it will be the lead institutional investor in Twiga. It is providing the bulk of the $23.75 million,” said Twiga Foods’ CEO and Co-founder, Peter Njonjo.

The financing will enable the company to expand its operations and geographic footprint as well as continue to develop its proprietary technology platform.

“This funding enables us to invest in our technology and organization to tackle the inefficiencies in Africa’s domestic food production and distribution ecosystems; a $300bn informal and fragmented market that is estimated to grow to $1trn by 2030. With the support of our investors, we are developing technology-driven commercial solutions and cooperating with existing industry players to solve the challenge of food security in Africa,” Peter added.

Reportedly, the company intends to use the funds to set up a distribution center in Nairobi and other cities in Kenya, including Mombasa. Twiga is also targeting Pan-African expansion by third quarter 2020.

“We’re working on French West Africa…we see significant opportunity in those markets,”added Mr Njonjo, adding that the new countries will be named next year.

So far, the agricultural produce startup is the most funded Twiga is one of the best-funded in Africa. In 2017, it raised $10.3m from investors.

In November 2018 Twiga raised another $10m from the International Finance Corporation (IFC), TLcom, and the Global Agriculture and Food Security Programme.

Twiga reports that it sends produce from over 17,000 producers to 8,000 vendors thrice a week.

Reportedly, Twiga Foods will use the $30m round to set up a distribution centre in Nairobi and expand to more cities in Kenya.

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Investing

Kenya Ranked 5th as Investment-friendly Environment in Africa

Inversk Review

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The Africa Risk-Reward Index which ranked 26 African countries based on investment potential awarded Kenya 6.27 points out of 10 earning it the fifth position out of the total.

Ethiopia tops the rewards sub-index, with eight points, followed by Egypt (6.7), Ivory Coast (6.6) and Tanzania (6.3). Ethiopia’s high reward score is attributed, largely, to its huge market of 100 million people, and also the process of liberalizing various sectors such as telecommunications, aviation and financial services.

The Africa Risk-Reward Index is made up of two strongholds which include rewards and risks. The rewards are tested on four precise bases including economic growth forecasts economic size, structure and demographics.

Among them all, economic growth outlook carries the heaviest weight in the reward score, as this is a major factor influencing any investment opportunities.

Kenya’s splendid performance is linked to the efforts to take full advantage of opportunities granted by the East African Community (EAC) by pushing for the removal of tariff and non-tariff barriers to trade, as well as pitching for free movement within the region, which was announced by the President, Uhuru Kenyatta, while addressing the 42nd General Council of the Organization of African Trade Union Unity (Oatuu)

On the downside, Kenya is ranked as the 16th most risky place to invest in whereas the Democratic Republic of Congo (DRC) takes the lead in that sect with an eight out of 10 score.In contrast, Mauritius is regarded as the safest.

In the East African Community, Kenya comes in second after Tanzania. This is because, Tanzania performs better than Kenya when it comes to political stability.

“Unlike Kenya, where ethno-regional tensions produce cyclical instability around elections, political stability risks in Tanzania are low in light of broader social cohesion under the ruling Chama Cha Mapinduzi party,” says the report.

The challenges that Tanzania bares are her protectionist attitude towards her neighbors, highlighting occasional blockages of goods from other EAC countries, as well as President John Magufuli’s nationalist stances on the extractives sector.

Kenya came third in the EAC after Tanzania and Uganda. Rwanda has been ranked to have the least risk in the region. According to the World Bank, it has been hailed for improvements in government bureaucracy and reforms that encourage international investment. It is also the highest-ranked country in the bloc on ease of doing business.

Nigeria, Morocco, South Africa, Algeria and Angola are some of the countries that were outdone by Kenya despite being perceived as countries with larger economies by the 2018 Gross Domestic Product value data from World Bank.

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Funding and Raising Capital

100 Women To Win Funding of Up to $85,000 from Invest2Impact Competition

The competition is set to start on July 11 and end on November 13.

News Team

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100 women entrepreneurs from Kenya, Uganda, Tanzania, Rwanda and Ethiopia are set to get funding to the tune of up to $85,000 from a funding competition dubbed Invest2Impact.

Invest2Impact, an initiative from Graça Machel Trust in partnership with FinDev Canada and other finance institutions from the U.K., will see women from each of the participating countries compete for the fund. Only 20 women will be selected from each country.

The initiative was launched on Thursday at an event in Nairobi, Kenya where Graça Machel has visited tghe country to amplify women-led businesses.

Speaking during the event, Graca noted that the decision to focus on women entrepreneurs was made because of the significant contribution that they make to their economies.

“Empower a woman and a whole community will thrive, empowering women benefits everyone and is essential for communities to thrive. Research shows that increasing women’s involvement leads to improved financial management and more sustainable, thriving communities,” she said.

When women-led enterprises are empowered to achieve their full growth potential, they contribute to more job creation, enhanced regional trade, and spur more activity among budding entrepreneurs.

“Through our numerous engagements with women across the continent at the GraçaMachel Trust, we have witnessed the rise of African women who are not content running businesses for subsistence purposes only.

“Some are venturing into sectors that are traditionally male-dominated where their numbers are still small; some are bent on improving their technical knowledge and capacity to tackle even greater challenges impacting the business landscape; and some are engaging in regional trade to maximise their growth potential. The female segment cannot be generalised as ‘niche’ or ‘predictable’,” Mrs. Machel said.

Businesses whose focus are aligned with the UN Sustainable Development Goals; seeking to reduce poverty, increase access to health and education services, reduce hunger and increase food security, promote gender equity, create decent working conditions for their employees and spur economic growth, have a greater chance of being considered for the funding.

Participating women will also benefit with business development services, mentorship programs, new networks and business visibility through partnerships.

To qualify, a business must be led by a woman or women owning at least half of the share-holding and have assets or revenues in excess of $50,000 (Sh5 million). The business must also have been in operation for at least three years and a minimum of five employees.

The Invest2Impact will categorize participants into four “tracks”: 2Xcelerate, 2Xcrowd, 2Xcapital and 2Xcatalyse.

25 finalists will compete for cash prizes of Ksh.8,749,900 ($85,000), recognition at a gala winner’s event and participation in the Invest2Impact funding readiness program.

For the 2Xcrowd track, 25 businesses will receive customized, tailored support and mentorship to implement an Africa or global crowdfunding strategy.

2Xcapital will see 25 applicants who are selected from the Invest2Impact participants benefit from access to funding programs. It is targeting smaller businesses that seek funding less than Ksh.308,700,000 ($3million).

In the final category, 2Xcatalyse, 25 female entrepreneurs will be selected to attend a major international expo, conference or event in their industry sector with sponsored travel, attendance fees and promotional material.

The Invest2Impact competition which will be on an online application portal will open to the public on Monday July 18 and will remain open to applicants for two months.

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