Dear African VC, angel: international investors are stealing your lunch

Is there a shortage of VC and angel funding in Africa? Pose the question to entrepreneurs and the answer is bound to be yes. Omidyar’s latest report on African entrepreneurship found that 71% of respondents surveyed in South Africa, Ghana, Kenya, Ethiopia, Nigeria and Tanzania believe that there is a shortage of equity capital to start new firms. African financiers disagree, simply saying that many projects are not fundable.

Whatever the case may be, the International Finance Corporation estimates that up to 84% of small and medium-sized enterprises (SMEs) in Africa are either un-served or underserved, representing a value gap in credit financing of US$140-billion to US$170-billion. So, what’s a startup to do?

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