Debt and Equity for Firms and Projects in Africa

We support privately held businesses in Africa (mainly in Ghana, Nigeria and Cameroon) who seek investment capital to expand their business or develop projects within the scope of their business. Investors are Private Equity funds focused on developing economies or Africa, development banks and, in some cases, firms with an interest to build their business in Africa.

The same service is available to European firms who wish to establish themselves in Africa, and not only sell their products, but also invest there. In fact, financial partners often feel more at ease when a firm from a developed country is involved in a business development,  than with a local partner alone. 

It is our preference to work with well managed, profitable companies of the private sector. Our services may be limited to brokerage, introducing our clients to suitable investors, and mainly remunerated through a closing fee. But very frequently TL Management GmbH renders additional financial advice to its clients.

The same service is available to European firms seeking to invest in Africa. We can seek financing (normally, from the same sources) as for local firms. Furthermore, we can advise and support them during the whole process. In Ghana and Nigeria, a strong network of local partners is working with TL Management GmbH.

Additional Financial Advisory Services

Additional Financial Advisory Services offered to clients of TL Management GmbH typically cover the following subjects.

  • what type of financing to seek - debt, equity, or further instruments
  • how much financing is necessary and appropriate for a company and its (realistic) objectives
  • information and advice on cost of financing
  • pre-financing clean up of balance sheet
  • writing of a business plan (this may be fully or partially be done by local partners of TL Management GmbH in the respective country)
  • compiling the documentation needed to address investors
  • evaluating business and currency risks (clients often seek foreign currency financing at low interest rates, without a view to currency risks)
  • search for partners needed for projects or business expansion
  • especially for European firms who consider to invest in Africa, information and advice on the political and economic situation can help to decide on whether to go, where to go, and whether to go alone or with partners

TL Management supports its client throughout the whole process until a financing has been closed. However, we like clients to be aware that TL Management does not render advice with regard to legal, tax or accounting issues. Support from specialized professional firms, familiar with the legal framework of the respective country, is mandatory when closing an agreement with an investor.

Trade Finance

Trade finance needs arise as, typically, suppliers have to be paid before buyers pay the trading firm in between. They are particularly urgent in commodity trade, where amounts can be very large, with low margins, and in developing economies, with weak local financial institutions. Financiers (whether outside banks or special funds) who step in, are typically very careful to manage their risks: they demand full cover of their exposure throughout the whole process by having a title on the goods traded (possibly supported by an independent collateral management), or of the receivables from the final buyer, typically to be locked in in advance through an appropriate financial guarantee.

TL Management GmbH offers trade financing services to clients regardless of where they are located.

Financing in other geographical areas

In some cases, TL Management also takes financing mandates from clients with business (or business objectives) outside of Africa and beyond Trade Finance.

The fundamental process to seek financing is very similar and independent from the respective jurisdiction. TL Management's particular advantages in Africa are the following

  • we know who the potential investors are (many funds specialized for Africa alone, or, in some cases, developing economies)
  • we know a lot about business and market conditions in various African countries, particularly Ghana and Nigeria
  • we have a network of partners in various African countries, particularly in Ghana and Nigeria.

Regarding possible mandates from other geographical regions, a case by case decision has to be taken whether TL Management could be suitable to take the assignment or not.