Thesis

Reassess Africa’s Growth Potential

Africa is a diverse market with unique challenges and unique opportunities. The application of technology offers promising prospects for significant advances and accelerated growth. At Constant Ventures, we address these challenges and capture these opportunities through our investments.

OPPORTUNITY

FOCUS AREAS

OPPORTUNITIES

Where many others see problems, we see opportunities

Africa’s has unique demographics and unharnessed opportunities . Advances in communication and digital technology offer new paths to capitalization on these opportunities.

OPPORTUNITY #1

Underutilized Talent

There is a popular quote attributed to Leila Janah, “Talent is equally distributed, opportunity is not.” With a median age of 19.5 years, Africa has the youngest population in the world and an abundant source of talent. It is full of people that are hungry and willing to learn… all they need is an opportunity. Before now, these opportunities have been limited due to considerable structural and development challenges. However, we believe that changes in information technology will continue to make it easier for Africa’s talent to access information, knowledge, and opportunities in global markets. We also believe that there are significant investment opportunities in backing the best of Africa’s talent.

OPPORTUNITY #2

Working-Age Population

By 2035, the number of Sub-Saharan Africans reaching working age (15–64) will exceed that of the rest of the world combined. With aging populations elsewhere, Sub-Saharan Africa will drive global population growth in the future. In most other parts of the world, similar transitions have been associated with higher savings and investments, raising potential and actual growth. For the global economy, integrating Sub-Saharan Africa’s labour force into global supply chains would be beneficial. To maximize this demographic dividend, Sub-Saharan Africa will have to create high-productivity jobs at an average of about 18 million jobs per year until 2035 – an extremely rapid and possibly unprecedented rate – to absorb the new entrants in the labour force.

OPPORTUNITY #3

Hours of Sunlight

With an estimated 325 days of sunlight every year, solar power remains one of Africa’s most abundant but scarcely used resources. There is a huge gap that creates lucrative business opportunities to transform energy distribution in Africa, yet the World Bank estimates that over 600 million Africans have no access to electricity. Africa’s demand for electricity has outgrown its supply since 1990. Consumption is growing at 8.4% per year while supply is growing at 6.1%. With the ability of solar-fintech solutions to deliver power to Africans alongside affordable financing to pay for it, we believe that solar is the breakthrough technology that will finally connect Africa’s vast off-grid communities.

OPPORTUNITY #4

Acres of Arable Land

Sixty percent (60%) of the world’s uncultivated arable land is in Africa, yet Africa remains a net importer of food. Africa’s agricultural output could be two or three times larger. Realizing the full agricultural potential of Africa requires significant private investment, innovation, and technology. Agriculture growth is more important for Africa than any other continent. With its rapidly growing population, the continent must feed over 2 billion people by 2050. It is estimated that at full potential, Africa can feed the globe by 2050.

OPPORTUNITY #5

Mobile Money Adoption

Sub-Saharan Africa is the largest market for mobile money services. At the end of 2018, there were 396 million mobile money accounts registered in the region, representing nearly half of the total global mobile money accounts. And in 2019, sub-Saharan Africa had 456 million unique mobile users. It is estimated that the region will add an additional 167 million mobile phone users by 2025, taking the subscriber base to 600 million, which is almost half of the region’s population. Africa is addressing social challenges through mobile big data. The use of mobile networks generates information about consumer behavior, geographical location, and lifestyle patterns. Mobile connectivity continues to transform the lives of millions of people across the region, by enabling the delivery of life-enhancing services, including health, education, and financial inclusion.

OPPORTUNITY #6

Middle-Class Growth with a Positive Outlook for the Future

The continent is seeing a powerful rise in household income, strengthening the growth of the middle class which was estimated at 400 million in 2018. Nigeria, the largest economy on the continent recorded a 600% growth in the size of its middle class from 2000 to 2018.

OUR FOCUS AREAS

We are focused on sectors with huge growth prospects

Africa’s demographics, population growth, and unmet needs in healthcare, agriculture, energy, and education represent significant opportunities for businesses and investors.

Financial Services

The growing size of the middle class and the continent’s underdeveloped financial infrastructure is fueling demand for financial services such as insurance, banking, asset management, mobile money, micro-saving, and lending. Technology-driven solutions offer the prospect of transformative change. We are committed to investing in businesses leading the transformation of the sector in Africa.

Healthcare

Africa has achieved notable improvements in healthcare outcomes as indicated by an increased life expectancy rate and a reduced infant mortality rate. However, there remains a significant shortfall in services and outcomes. We will invest in businesses that provide innovative solutions that address healthcare needs through hospitals, pharmaceuticals, diagnostics, telemedicine, and other healthcare delivery solutions.

Agriculture & Energy

Constant Ventures will invest in companies offering innovative solutions across the value chain of these sectors including food storage, distribution, renewable energy, and natural gas production and distribution. We will leverage our global network and investment expertise to work with leading teams focused on long-term value creation.

Market Platform

Digital and technology-enabled marketplaces promise to disrupt commerce and provide new and more efficient tools for consumers and businesses. Africa is positioned to leapfrog into new technology platforms and be a leader in innovation. Our deep experience in this sector enables us to identify promising companies, entrepreneurs, and ideas and help them grow. By offering institutional support and global resources, we will enable these companies to reach their full potential and unlock greater opportunities.

WORK WITH US

Let’s Build Africa’s Future.

We believe that Africa offers unique opportunities and unique challenges. We work with entrepreneurs to realize those opportunities and create enterprises that can make a significant impact. Join us today in creating a promising future for Africa.