32 - This is An Under-appreciated Investment Opportunity for Those that Want to Invest in Africa
Explore why private debt is an overlooked but high-potential investment strategy for Africa. Learn how cash-flowing businesses and due diligence can yield impressive returns, offering a fresh perspective on wealth creation in emerging markets.
This Is an Under-Appreciated Investment Opportunity for Those Who Want to Invest in Africa
When thinking of investing in Africa, most turn to venture capital or private equity as their go-to strategies. However, there’s a less celebrated yet highly lucrative alternative: private debt. This episode of Pattern Cognition with Sid Mofya sheds light on why private debt deserves your attention and how it’s shaping the future of investment in Africa.
Private debt involves lending directly to cash-flowing businesses. Unlike startups requiring venture capital, these businesses often have proven models and stable revenue streams. Yet, they face challenges accessing traditional financing. This creates an opportunity for savvy investors willing to conduct thorough due diligence.
Why is this approach so promising? With the right partners to guide your diligence, private debt can yield returns of 30% or more. It also supports sustainable growth for businesses that are the backbone of Africa’s economy.
In today’s episode, we explore:
• Why private debt remains underappreciated in African markets
• The role of due diligence in unlocking high returns
• How this strategy differs from venture capital and private equity
• Ways to identify reliable partners and opportunities
If you’re ready to uncover an innovative investment pathway and support Africa’s economic growth, this episode is a must-listen. Don’t miss out on learning how private debt could reshape your investment strategy.
Highlights:
0:00 Introduction to an Overlooked Investment Opportunity
00:05 Exploring Private Debt in Africa
00:19 Benefits and Returns of Private Debt
Links:
Website: https://www.sidmofya.com/
LinkedIn: https://www.linkedin.com/in/sidmofya/
Transcript:
Here's an under appreciated investment opportunity for those that want to invest in Africa. It's private debt. Most people would look at venture capital or private equity, but there are lots and lots of opportunities of cash flowing business that could benefit from private debt if you do the right due diligence.
So have a look at that and just find the right diligence partner and those opportunities are, you know, will give you 30 percent IRR and more easily.