Enternships

Last week-end I attended the a conference that explored the Investment Climate in Africa organised by the Africa Club at London Business School. I especially enjoyed the panel that discussed Innovative Financing in Africa and was particularly encouraged by the repeated mention of enterprise, entrepreneurship and the support of SMEs. The main concern remains how to get finance directly to entrepreneurs while the equity risk premia remain so high.

MyC4, an on-line marketplace that connects Western investors directly with Africa entrepreneurs, was put forward as a solution to this. Investors are able to give as little as 5 Euros and the ethos of the company is as follows:

By focusing on the power of Business as the driving force to end poverty, MYC4 provides all with a dynamic platform to create and support new enterprise and commercial innovation in Africa. Through modern technology we all create financing for the ‘unfundable’ by bringing us together in Business partnerships. And thereby MYC4 becomes a significant tool in the fight to eradicate poverty.

This idea becomes even more interesting when taken together with the arguments of Dambisa Moyo in her recently published Dead Aid, a controversial book which has sparked a debate that graced the cover of the  Financial Times this week-end:

Ms Moyo argues that official development assistance has fostered dependency and perpetuated poor governance. She proposes a blend of commercial debt, micro-finance, fairer trade and investment in its place….Activists fear that developed countries seeking an excuse to slash aid budgets have found one in Ms Moyo, at a time when Africa is especially in need. They dismiss her book as simplistic – even dangerous.

The debate continues…but clearly we are in a time when we are questioning the status quo and, thanks to Dambisa Moyo, that now includes what we previously took for granted with regards to aid to Africa. In this environment it would be a tremendous step forward if the western individual looking to do something for Africa ended their culture of micro-aid and ‘money for nothing’ to African governments, and replaced it with one of micro-investment directly to the African entrepreneurs that need it most.

You can follow Dambisa on twitter via @dambisamoyo

For more information visit – www.myC4.com