Investments
Africa Investment Relations is an investment vehicle to create business, for business development and participating in other companies in Southern Africa.
Why
Africa Investment Relations is established to create a business vehicle for Blom Management Consultancy B.V. – with its headquarter in The Netherlands – that locally in Zimbabwe can take the initiative to create new business. Africa Investment Relations – and its derivatives – is promoted as a local brand and a Zimbabwean owned and directed company, what complies with the law.
How
The investment vehicle Africa Investment Relations operates as an empty businessperson. It has no own products or services and is no more than a transfer point of investment decisions made by Blom Management Consultancy B.V. and other owners and it is the (co-)owner of its derivatives. This transfer role and the ownership role are managed by me on behalf of Blom Management Consultancy B.V.
What
Even as an empty businessperson Africa Investment Relations is an important keystone in the network of companies that is directed by Blom Management Consultancy B.V. The substantial elements of this investment vehicle are an influx and outstream of capital flow, the administration and legal registration of profits and losses of its derivatives, and tax payments in Zimbabwe. Besides that, if there are shareholders in the derivatives other than from the Africa Investment Relations, also their rights and plights will be ruled by Africa Investment Relations.
Investment Scope & Investors’ Relation Management
An investment is worthful if it expresses a mutual effort for growing the social and the economic capital for the benefit of all involved, and if it contributes to a sustainable future
Two-sided
My investment relation management & investor service is a two-sided configuration:
1. Capital raising for private project and business owners in Zimbabwe
They are looking for equity and/or debt)venture capitalists. These owners are either a promising start-up or a successful growing company or institution (university, hospital, city complex) that needs extra capital for expansion or to react adequately on new market chances. They are supported to present an investors’ pitch deck.
2. Market entry for equity and venture capitalists, nationally and internationally
These investors are looking for reliable, safe, and profitable investment opportunities with private business owners. Mostly they have strict requirements (see Annex).
Network
Because of my extended local business development network with leading private businesspersons, and international contacts with investors in the USA and Europe, I am contacted from both sides and can relate trusted parties with each other.
NDA
With both parties I sign a non-disclosure agreement. The parties also will sign mutually later.
Due Diligences
After parties got interested in each other my financial and legal experts take care of the due diligence of the business owners’ company to check the business case and I will report to the interested investor(s). In line with this Due Diligence also the potential investor must proof the credibility and the lawfulness of the funds.
Deal Making
From a positive DD we will see if a contract can be reached. The way to come to such a contract will differ per investment. Preferable is that parties also meet each other.
If there is a deal to make, I take care of a legally based investment contract that complies with the international business standards. The investment contract is drafted by my business lawyer and will be accorded by the lawyers and CFOs of both parties before signing.
Fee
The fee I charge is the outcome of an agreement between all involved parties. I charge a one-time fee for the whole deal. No double fee-charging.
ANNEX
Investment Requirements July 2021
Most common requirements to finance a project/new or expanding business are:
1. From 10 – 49,99 Mio USD
a. showing a Bankable Business Plan
b. showing an attractive EBITDA
c. with an Internal Rate of Return (IRR) on the project above 18%
d. availability of a Bank Confirmation Letter (BCL) with proof of funds
e. followed by a Standby Letter of Credit (SBLC)
f. and with 25% of the Total Capital required
2. From > 50Mio USD
a. showing a Bankable Business Plan
b. showing an attractive EBITDA
c. an Internal Rate of Return (IRR) on the project above 18%
d. availability of a Bank Confirmation Letter (BCL) with proof of funds followed by a Standby Letter of Credit (SBLC)
e. followed by a Standby Letter of Credit (SBLC)
f. and with 20% of the Total Capital required
For both applies
a. Grace period of 3 years
b. Annual interest rate 1 to 1.5%
c. Repayment to maturity 12 years negotiable
d. Bank status: triple A (AAA)