Energise africa

GiddyInvestor

Just noticed an article in the Guardian about this crowdfunding scheme (energiseafrica.com) for solar power in Africa promising 5% bonds. Normally I would run a mile from anything like this but seeing as it is backed by DFID and Virgin Unite it may be less likely to go belly up.

Just out of interest who would consider investing in it.

ColdIron

Are DFID or Virgin Unite underwriting your investment? No. Therefore the same risks remain. It's an unregulated, illiquid mini-bond with no FSCS protection and the potential for 100% loss of capital (except the first 100 quid)

eskbanker

GiddyInvestor wrote: »

Just out of interest who would consider investing in it.

Someone describing him/herself as a giddy investor perhaps?

Or someone prepared to regard it as potentially a charitable donation rather than an investment....

GiddyInvestor

Having worked in Africa for many years I would not touch any such investment. Loans are often treated as gifts with repayments considered completely optional.

It would be quite embarrassing though for HM Government if it failed though due to fraud so perhaps there is a little bit of oversight being put in place. In my experience Dfid though are also incompetent so maybe not.

DrSyn

4. Get your money back plus interest*

*Please remember your capital is at risk and repayments are not guaranteed.

https://www.energiseafrica.com/how-it-works

bostonerimus

The Guardian manages to fill many column inches promoting energy bonds and then writing stories about their collapse. Don’t be a fool with your money; stick to regulated investments, just put your money into something like VLSxxx

Boleyn19

I read this article too. If I was to make a charitable donation to help with low income/no income families in Africa I'd so so through a gift via a recognised charity and not one that purports to be an investment.

TBC15

Africa

I’m out.

Reed_Richards

ColdIron wrote: »

It's an unregulated, illiquid mini-bond with no FSCS protection and the potential for 100% loss of capital (except the first 100 quid)

But if a lot of people "invested" that 100 quid they could do a some good for Africa and their capital would be protected, so it seems. If so, the worst case scenario would be that they made an interest-free loan of £100 for a few years.

Malthusian

GiddyInvestor wrote: »

Having worked in Africa for many years I would not touch any such investment. Loans are often treated as gifts with repayments considered completely optional.

Funnily enough the same is true of the scam-friendly UK.

It would be quite embarrassing though for HM Government if it failed though due to fraud

Not really. Nobody would give the slightest trace of a toss. Nobody cares about other people's failed investments. That's why the biggest UK fraud of the past couple of decades, with larger losses than Brinks Mat and the Great Train Robbery combined, is on page 35 of the broadsheets.

Malthusian

Reed_Richards wrote: »

But if a lot of people "invested" that 100 quid they could do a some good for Africa and their capital would be protected, so it seems.

Nobody is going to bother investing £100, though. They will invest £20,000 because "if it's backed by the Government it must be legit". That's the point of this £100 thing.