Investing in Africa
Africa is the most attractive investment region in the world. Most economies grow dynamically. Everything is needed. Markets are unsaturated and expanding. Doing business becomes easier and safer. Risk is above average but can be managed. Return on invest is very high.
The COVID-19 crisis will cause an intermission in this trend that is expected to be temporary in nature. After the crisis, Africa’s relative attractiveness might become even greater than before.
It is wise to store one’s assets at a safe place – be it precious metals in a safe deposit box outside of the banking system, or holding shares of productive assets in a “fortress”-style legal entity in a safe jurisdiction.
The developed world is drowning in debt. Interest rates have becoming negative. Many industrialized countries and emerging markets were already in recession mode when the COVID-19 crisis hit. Bank accounts in the EU are no longer safe. The Euro might break. In short: The world financial system might collapse soon.
Investors are desperate. Bonds offer no yield. Stocks seem to be overvalued. Many real estate markets sre in a bubble. Most commodities are in bear markets. Assets might get confiscated. What to do?
- Invest where there is still growth.
- Invest in economic sectors that are least vulnerable against financial crises and least affected by the coronavirus crisis.
- Diversify your assets globally.
- Avoid storing wealth in bank accounts where a bail-in is legally possible (this includes all of the EU and the US).
- Invest in alternative asset classes.
Solutions for institutional investors, family offices and financial intermediaries
An increasing number of institutional investors, family offices and financial intermediaries are looking for direct investment opportunities in Africa, as well as for investment strategies, project portfolios and access to Expert Funds and Collective Investment Schemes.
They want to benefit from high ROI in an attractive growth region (Africa), a safe regulatory environment (i.e. Mauritius) and a low correlation to the traditional asset classes.
These services will be provided by various financial services companies within our network. Additionally, investors may participate in technology-related direct investment opportunities in Africa.
For impact investors, Africa offers plenty of opportunities in a blue ocean environment:
Our transformative technologies support the UN Sustainable Development Goals.
Our projects will have lasting positive impacts on people, communities, economies, societies and the environment:
Information For Potential Investors From Germany
Although there are some restrictions on founding holding companies in low-tax jurisdictions (“Zwischengesellschaften”) and eventually tax penalties (“Hinzurechnungsbesteuerung”) that are laid out in the Foreign Transaction Taxt Act (“Aussensteuergesetz”) and the Investment Tax Law (“Investitionssteuergesetz”) when using financial vehicles that are not domiciled in the EU, there are possibilities of avoiding these traps: By focusing on direct investments into companies that carry out businesses which meet the requirement of active income sources (“aktive Einkunftsarten”), and avoiding financial instruments, respectively.
We have tax consultants in our network that are specialized in international tax structuring, wealth planning and cross-border transactions.