A Framework for Diaspora Crowdfunding in East Africa

As part of the Rwanda Capital Markets authority/ IFC/ Milken Institute Strategy Offsite in 2015, Lelapa drafted a white paper entitled: “Towards an East African Crowdinvestment Framework- Case Study: Europe – East Africa Diaspora Crowdinvestment”.

This discussion document served to outline the legal and operational framework for cross-border crowdinvestment transactions on LelapaFund, a French crowdinvestment platform whose mission was to facilitate crowdinvestment by the African diaspora into African SMEs and start-ups. In the context of the platform’s mission, this document highlighted the equivalency procedures and necessary exemptions and/or provisions under local law for such a fundraising mechanism to succeed locally. This document concerns crowdinvestment, also known as “equity crowdfunding” or “crowdfund investments” only; debt-based crowdfunding is another type of securities-based crowdfunding and was not included.