Equity Investment by Kenyans in Local Startups

Investors working abroad will be able to purchase equity in startups for as little as Sh13,000, and at least 20 startups have already been listed on the web, with the number of investors expected to grow in the coming days.

With this initiative, Pangea Connect, which will be launched on Monday, Pangea Trust will allow investors to purchase equity in startups. Heaven Bereket, the co-founder of Pangea Trust, stated that the platform will be open to investors from Kenya, Ethiopia, and Somalia.

“This platform was born out of our recent diaspora remittances survey, which discovered that many Africans living abroad have the desire to invest back home but lack knowledge and investment options,” Bereket explained.

According to a survey conducted by Diaspora Remittance Mapping, the most significant barrier to enabling diaspora investments is obtaining appropriately credible and packaged information on available investment opportunities.

At least 23% of diaspora residents found this to be a major challenge during the investment process. According to the Central Bank of Kenya’s diaspora remittances survey, this forces many of them to invest in immovable or dead assets such as land and houses in rural areas.

Bereket stated that Pangea is collaborating with various alliances in various countries to identify who would be a good investment to invest in startups. “We have vetted and assisted several startups across the continent in becoming investor-ready.” Before bringing them on board, we investigate their financial records, sales, directors, future plans, and overall track record.”

They are also cooperating with other financial institutions to investigate cases of illicit financial flows and fraud. “We are also interested in firms that bring social-economic change to their communities in accordance with the Sustainable Development Goals,” she added (SDGs).

Diaspora remittances have increased over the last decade, with at least $80 billion sent back each year. Diaspora inflows into the country have increased dramatically, with total remittances in 2021 reaching an all-time high of Sh418 billion, far exceeding the $3 billion received in 2020.