Investments
Africa Investment Relations serves as a dedicated vehicle for business creation, development, and participation within companies across Southern Africa.
The Driving Force
Africa Investment Relations was conceived to facilitate Blom Management Consultancy B.V.—headquartered in The Netherlands—in initiating local business ventures in Zimbabwe. Promoted as a locally-owned brand, Africa Investment Relations adheres to Zimbabwean regulations and operates under local governance.
Operational Blueprint
Africa Investment Relations functions essentially as a business conduit—it doesn’t offer its own products or services. Instead, it acts as a hub for investment decisions made by Blom Management Consultancy B.V. and other stakeholders. This pivotal role in channeling investments and overseeing derivative ownership is managed personally by me on behalf of Blom Management Consultancy B.V.
Core Operations
Despite its minimalistic approach, Africa Investment Relations remains a crucial linchpin within the Blom Management Consultancy B.V. network. Key functions include managing capital inflows and outflows, overseeing profit and loss records of its derivatives, and ensuring tax compliance within Zimbabwe. Furthermore, Africa Investment Relations governs the rights and obligations of shareholders involved in its derivatives.
Investment Strategies & Nurturing Investor Relationships
An investment's true worth shines when it fosters growth in both social and economic capital, benefiting all stakeholders, and steering towards a sustainable future.
Dual-faceted Approach
My investment and investor service strategy is twofold:
- Raising Capital for Local Projects & Enterprises in Zimbabwe:
Supporting promising startups or thriving companies and institutions in acquiring equity or venture capital. These businesses are aided in curating compelling investor pitch decks.
- Facilitating Market Entry for Investors:
Assisting national and international equity and venture capitalists in identifying trustworthy, profitable investment opportunities with private entities. These investors typically have stringent criteria (refer to the Annex).
Network;
Owing to my extensive local and international business network, I act as a bridge connecting entrepreneurs and investors, ensuring fruitful collaborations.
Non-disclosure Agreement (NDA):
Confidentiality is paramount. I sign NDAs with all parties, with mutual NDAs exchanged at subsequent stages.
Due Diligence:
Once there’s mutual interest, my team of financial and legal experts conduct thorough evaluations of the business in question. Concurrently, potential investors are vetted to ensure the authenticity and legality of their funds.
Finalizing the Deal:
Post a satisfactory due diligence, the path to drafting an agreement is pursued. Ideally, both parties should meet. I oversee the formulation of a legally compliant investment contract that aligns with international business standards. This contract is reviewed and approved by legal and financial representatives from both ends before being signed.
Fee Structure:
My fee is determined through mutual agreement and is charged as a one-time sum for the entire deal, ensuring transparency without double charges.
ANNEX
Investment Criteria as of July 2021
Investment Ranges and Requirements:
- 10 – 49.99 Mio USD:
a. Bankable Business Plan
b. Attractive EBITDA
c. IRR (Internal Rate of Return) on the project > 18%
d. Bank Confirmation Letter (BCL) demonstrating proof of funds
e. Standby Letter of Credit (SBLC)
f. Provision of 25% of the Total Capital required - 50 Mio USD and above:
a. Bankable Business Plan
b. Attractive EBITDA
c. IRR on the project > 18%
d. Bank Confirmation Letter (BCL) with subsequent Standby Letter of Credit (SBLC)
e. Provision of 20% of the Total Capital required
General Terms:
a. 3-year Grace Period
b. Annual Interest Rate between 1% and 1.5%
c. 12-year Repayment Tenure (negotiable)
d. Bank Status: Triple A (AAA) rating required