Why a Permanent Capital Investment Company?

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Restoring 100’s of millions of hectares of land across Africa will require hundreds of billions of dollars. Far more money philanthropy and government aid can provide.

The solution is to provide investment structures which attract investors to provide capital for solutions. Doing that requires finding and growing profitable companies which plant trees and restore land as part of operating their businesses. Africa Trees does the finding and growing.

The solution has a few parts:

  1. Bundle startups to diversify risk, including diversity across business models and across country borders.
  2. Bundling companies more quickly creates institutional-scale investments.
  3. As quickly as possible, grow these bundles into public companies, opening up the IPO window in Africa.
  4. Continue investing into the bundles, ultimately listing these companies in Africa, London, and New York.
  5. At scale these bundles become conglomerates helping their subsidiaries follow with their own IPOs.
  6. When the founders of these subsidiaries are finally ready to start something new, the investment company can buy out the founders with public shares.

One such bundle is Africa Trees:

  1. The first 14 investment offers have been sent out, with the portfolio to be announced shortly.
  2. These companies earned over $6 million in aggregate revenues in 2022 up from less than $1 million five years prior.
  3. The plan is to add 10-20 more companies annually, helping all of them grow their individual annual revenues beyond $1 million, then $10 million, then more.
  4. Projections grow the value of the portfolio beyond $100 million of market cap by 2029, sufficient for an IPO on the London Stock Exchange.
  5. This plan copying the model pioneered by Africa Eats, which is a bundle of for-profit companies focused on ending hunger and poverty in Africa.

At scale these bundles are public investments into African sectors, similar in feel to an exchange traded mutual fund. By the 2030s they should have sufficient trust and track record to be part of every American, European, Chinese, and Indian pension fund and endowment portfolio, allowing the capital from the rich countries to flow where it is needed most, into Africa.

The biggest hurdle to growing Africa’s economy faster is capital. This investment company investment model is the simplest path to fill the capital gap all the way from retail investors to small-but-growing African startup.

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