Out of the Box Financial Investment Solutions
The Festive Season for entrepreneurs and Small Businesses can be a stressful financial time. With this in mind and to gain some perspective on finance in Africa in 2020 Matoyana spoke to Kagiso Tloubatla, Founder of SV Capital.
SV Capital gives alternative investment solutions geared towards Africans – how do you go about doing this?
We provide simple and easy to understand investment products that also have a positive impact on society and the surrounding communities. We offer these products by partnering with local businesses.
You mention having products which are structured to appeal to the traditional African concepts of value – can you explain this a little more?
We want to launch products that appeal to everyone not only in South Africa but also the rest of the African continent. One of our products is an investment in cattle which is an investment Africans have been making for many generations. It is a simple investment which you can touch and feel. The value of a cow can be understood across borders and doesn’t require you to have a qualification in finance or investments.
That’s such a great concept combining tradition and investment. Do you see innovative business models like yours becoming more important in finance – investing in general?
Yes I do. Many people have been excluded from participating in the investing industry and this happens to be the majority of the population. The formal financial market is already saturated and has a very high barrier to entry. I see more companies similar to SV Capital popping up in the next few years.
How do you recommend your clients invest differently about money?
I always tell our clients that they shouldn’t invest in something they do not understand. If you follow this rule you will save yourself a lot of stress and money. If it does not make sense do not invest your hard earned money in it. Ask the following basic questions:
- How do I make money?
- How can I lose money?
- What are the risks of this investment?
- What is in it for the company providing the investment product? How do they make money?
Do you have any financial advice for entrepreneurs over the Festive Season?
For those that have newly established businesses or have been operating for a while remember that you always have to plan ahead so you should be thinking about January 2020 already. But most importantly take a break over this festive season to recharge those batteries for 2020 – I have a feeling that it will be a tough but very good year for all of us.
How do you feel about economic growth in Africa and South Africa in 2020?
I think 2020 is going to be a tough year for all of us including consumers and small businesses. But this is the narrative for almost every year for any entrepreneur. I think Africa has a lot of potential, my wish for entrepreneurs in South Africa is that they build solutions that solve African problems and not just South Africa, that way they can enter multiple markets. My personal theme for 2020 is collaboration and out of the box solutions that address real issues on our continent.
Anything else you’d like to add?
My best definition of Entrepreneurship is by Ernest Shackleton “A hazardous journey, small wages, bitter cold, long months of complete darkness, constant danger, safe return doubtful, honour and recognition in case of success.” So stay strong and committed on this journey.
Many thanks for the insights Kagiso.
