The first crowdfunding platform dedicated to property investments in Sub-Saharan Africa – Realty Africa – is set to launch, offering investors from all over the world the opportunity to invest in the growth and development of the region.
Realty Africa, which has also launched its own crowdfunding campaign on Indiegogo in a bid to gather the last EUR171,000 (US$184,000) of its needed starting capital, claims it is looking to overcome the often negative perception of investing in Africa by ensuring maximum safety.
With this goal in mind service contracts have been closed with Deloitte and fiduciary servicer fund Imara.
“For developers in Africa and investors it is difficult to find each other. Most investors still find it scary to invest in Africa. That’s why experienced and large investors control almost the entire market,” said Realty Africa co-founder and chief financial officer (CFO) Erik van Eeten.
The platform looks to provide investors with access to markets that have been historically out of reach, allowing them to invest amounts from US$1,000 upwards. It also allows communities and project developers to raise capital, without high interest payments or collateral requirements.
Realty Africa has established local teams and offices in a number of countries, including the Netherlands, South Africa, Botswana and Zimbabwe. Various African projects have already been evaluated and approved for crowdfunding, including projects for family houses and sustainable tourism.
Deloitte’s due diligence will screen each project before it goes live on the platform, while Imara has assisted in drawing up a legal construction which prevents owners from selling their property.
“Thus we provide maximum protection for investors,” said Van Eeten.
