MOBU � SMART Investment Bank

Mobuscamjuan17 Jun, 2021Business

It is no secret that Africa lacks access to capital and actually receives less than 1% of global deal flow from Venture Capital funds although it consists of 30% resources and 60% agri land. Investment banking is a growing trend now and several crowdfunding sites have come to life. Although they raise small amounts, but it is quite a good supportin strengthening the overall economic conditions. The problems with crowdfunding in Africa: ? Lack of regulation and accountability ? Africa, unfortunately is known for corruption and nepotism in a global context. When considering crowdfunding in Africa, it remains expensive and difficult taking legal action cross border. ? Longer payment processing time - Cross-border payments can easily take 3-5 working days between banks, making it an administrative nightmare even when escrow accounts are used. If there is a typo error in the payment process, it may not be cleared by central banks and take even longer.