SPACs are the big new old thing in American finance this year. What is a SPAC? It’s a pile of money in search of a business.
Africa Eats is an anti-SPAC. It’s a pile of companies in search of money.
SPACs exist because the system for funding high-growth private companies in the United States is far from efficient, and that includes the process for listing shares on a stock exchange.
We don’t see a wave of SPACs in Africa as the process for listing on African exchanges is far less onerous and expensive, plus the African stock markets are not as commonplace investments as the NYSE and NASDAQ are in the States.
We are like to see a wave of new public companies in the 2020s post-pandemic as economic growth in Africa resumes and as it continues to out pace most of the rest of the world.
More public companies and more thriving public stock markets will aid in that growth, and Africa Eats is aiming to join those ranks as soon as possible, purposefully bundling dozens of companies together to get to scale far more quickly than those companies can do so alone.