Kopokopo reports on enticing investment targets in Africa's tech industry:
Not only are there ample investment opportunities in Africa, but many of the tech companies behind them are capital efficient, have realistic valuations, and have first-mover advantage. With three fiber cables, a network of tech labs, a vicious price war between mobile operators, and the arrival of affordable smart phones, tech companies in East Africa in particular are positioned to capitalize on an exploding market.
Companies in East Africa are taking best practices and successful business models from Silicon Valley, too. Just look at some the consumer web companies popping up across the region:
Rupu (Groupon)
Mocality (Yellow Pages)
Dealfish (Craigslist)
PesaPal (PayPal)
Niko Hapa (Foursquare)
Even though LinkedIn, Groupon, and a looming host of other companies (Facebook, Twitter, Zynga, etc) are IPOing in the US, the IPO vs. M&A ratio is still 10:1. In East Africa, that ratio is even higher on the side of M&A (only 55 companies are listed on the Nairobi Stock Exchange). That said, tech companies in East Africa are being made to be sold. When multi-national companies decide to enter the East African market, as MasterCard and Visa are planning to do in Q3 2011, their first step will likely be via strategic acquisition.




































