Summary:
Local investors have better knowledge of on-ground challenges than foreign investors.
Benue Capital focuses on educating Ugandan HNWIs about the tech ecosystem's value.
Convincing HNWIs to shift from real estate to tech investments comes with challenges.
Building trust and awareness through education is essential for changing mindsets.
Local capital is set to become a major force in Africa's tech funding landscape.
The Call for Local Investment in Africa
African investors advocate for increased local capital in the continent's tech ecosystem. They argue that local investors possess invaluable on-the-ground knowledge, enabling them to navigate challenges better than foreign investors.
Benue Capital's Mission
Benue Capital, a pioneering VC firm in Uganda, is committed to educating high-net-worth individuals (HNWIs) about the value of investing in African startups. Marge Ntambi, a venture partner at Benue, emphasizes that true ecosystem ownership begins with local investment. She states, "Local high-net-worth individuals bring not only capital but also strong networks and a stake in their community's success."
Overcoming Investment Barriers
Convincing HNWIs to transition from traditional investments like real estate to tech startups is challenging due to the higher risks involved. Ntambi highlights the need to dispel myths surrounding tech investments and showcases successful local startups, such as Asaak, to illustrate potential returns.
Building Trust and Awareness
Ntambi discusses the importance of education in shifting mindsets. She notes that many wealthy individuals are accustomed to tangible assets and need to understand that smart risk-taking in tech can yield outsized returns. Data and stories play a crucial role in convincing HNWIs.
Addressing Concerns
Ntambi addresses common concerns about market volatility and currency fluctuations by educating investors on managing risks and diversifying portfolios. She explains that local investors can significantly impact the startup ecosystem by providing not just capital but also expertise and networks.
The Future of Local Investment
With a growing interest in forming syndicates and angel collectives, local capital is poised to become a major force in Africa’s tech landscape. Ntambi asserts that local investors will shape the future of the ecosystem by funding solutions that matter to their communities. She encourages hesitant HNWIs to start small and engage in the ecosystem to foster growth and innovation.
Conclusion
Marge Ntambi's insights highlight the critical role local HNWIs can play in transforming Africa's startup landscape. By bridging the gap between traditional investments and innovative tech ventures, they can help unlock the continent's potential.
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