Companies in Africa are increasingly turning to alternative methods of securing financing to more quickly grow their operations as traditional commercial capital has become more difficult to access in the current economic climate.
Demands placed on qualified start-ups with competitive business models and experienced leadership teams have greatly extended the lending cycle across many African nations. And when business loans are available the cost of capital has increased.
The Infinity Group reports that new businesses in areas such as renewable energy, technology and e-commerce, all examples of sectors poised to spark economic growth in key African markets, are turning to new funding alternatives to more quickly and effectively get businesses up and running and expand operations.
The Infinity Group is one of a number of financial service groups creating opportunities for hedge funds, pension funds, sovereign wealth groups, angel investors and others from around the world to co-op funding in well qualified and vetted early-stage companies in major African business hubs.
In the past year, for example, The Infinity Group has helped numerous fast-growing companies on the continent secure financing through its pool of international investors. This includes companies operating across a broad range of sectors in South Africa, Tanzania, Nigeria and Botswana, among others.
With this alternative financing model, The Infinity Group does all due diligence and market analysis while providing ongoing oversight and support to the companies on behalf of the investors. The companies are able to secure funding at competitive rates and extended terms while also contributing to job creation and economic growth in their local markets.