Tawanda Karombo Harare
A NEW crowdfunding platform has been set up to mobilise funds for property developments across sub-Saharan Africa.
The new crowdfunding platform was created by a South African company called Realty Africa and will mobilise funding from as low as $1000 (about R12 050) from small and new investors willing to seek exposure in the region’s property market.
However, the company has raised no money yet. The investments will be used to build hotels, lodges, social houses and other real estate projects.
“For developers in Africa and investors, it is difficult to find each other. Most investors still find it scary to invest in Africa,” Erik van Eeten, the chief finance officer and co-founder of Realty Africa, said.
He said this was resulting in “experienced and large investors” controlling “almost the entire market”.
The new scheme, in which Deloitte and Imara will provide fiduciary and due diligence backing, also allows communities and project developers to raise capital, without high interest payments or collateral requirements.
Realty Africa already had teams working on the crowdfunding project in Zimbabwe, South Africa and Botswana among other regional countries, it said.
Africa’s booming population and infrastructure deficits have given rise to opportunities for property and infrastructure development investors.