The article discusses Goldman Sachs’ investment in African tech startups, specifically its venture capital arm’s investments in several companies such as Jumia, Kobo360, and Twiga Foods. The author notes that despite the bank’s significant involvement in African tech, it has not elaborated on its motivations for investing in this region.

The article highlights several possible reasons why Goldman Sachs might be interested in African tech:

  1. Growth potential: With 54 countries and 1.2 billion people, Africa is considered a vast and growing market for technology.
  2. Digital financial services: As a banking company, Goldman Sachs may be interested in developing digital financial services on the continent, which is ripe for mobile payments and other fintech innovations.
  3. Profits: The bank may be seeking to profit from investments in African tech startups.

However, the article notes that these are mere speculations, and Goldman Sachs has not provided any clear explanation for its motivations.

The author also compares Goldman Sachs’ venture capital investments to those of Silicon Valley’s top VC funds, such as Sequoia Capital and Andreessen Horowitz. In 2019, Goldman backed 58 companies globally, compared to 81 for Sequoia Capital and 80 for Andreessen Horowitz.

Overall, the article suggests that Goldman Sachs’ involvement in African tech is a significant development, but its motivations remain unclear.

Key points:

  • Goldman Sachs has invested in several African tech startups, including Jumia, Kobo360, and Twiga Foods.
  • The bank’s motivations for investing in Africa are unclear.
  • Possible reasons for Goldman Sachs’ interest in African tech include growth potential, digital financial services, and profits.
  • The bank’s venture capital investments are smaller compared to those of Silicon Valley’s top VC funds.