Venture Capital- The missing middle in Africa.

Venture capital is the missing middle in Africa. While small businesses can get loans from microfinance institutions, big multinational companies can easily secure large sums of money from  banks. This leaves out the middle high growth businesses that have nowhere to turn to whne they need financing for their businesses. What's more, most of the growth in Africa is driven by minerals and extractive materials, which makes the high growth rates in the continent to be deceptive.

This is why the growth in Africa can sometimes feel hollow, creating what's known as jobless growth. Young people in Africa have especially been hard hit by lack of jobs, and studies show that
young people without jobs are the most likely to engage in social vices, and also, young people pose significant threats to the stability of their nations. This is particularly at a time when the continent is battling against terrorism and other forms of insecurity.

What's more venture capital provides not just the money, but also advice, mentorship, and access to markets thanks to the contacts and networks of the venture capitalists. What's more, the credibility offered by well regarded VC firms can be of huge benefit to the middle high growth businesses.