African Crowdfunding Association probing controversial Uprise.Africa

UPDATE (21 May 2020): Uprise.Africa said in a statement issued on 19 May 2020 that the ACfA had completed a review of Uprise Africa’s compliance with its code of good conduct and is “satisfied” that Uprise Africa remains compliant with its code. 

“The process included members of the board, executive management, and compliance teams of Uprise Africa. The review resulted in recommendations for Uprise Africa in the areas of risk management and communication. In all other respects, ACfA is satisfied that Uprise Africa remains compliant with our COGC,” Uprise Africa said.

ACfA subsequently released a statement which echoes Uprise.Africa’s statement — see this story.

The African Crowdfunding Association (ACfA) is conducting a review this week of equity crowdfunding platform Uprise.Africa, the association’s CEO and chairperson of the board, Elizabeth Howard said today.

The association, which is a non-profit organisation that receives grant funding from FSD Africa, represents African crowdfunding platforms and intermediaries.

The review, follows an exclusive exposé by Ventureburn last week, in which questions are now being asked about the crowdfunding platform, its head Tabassum Qadir and a R25-million fake pledge made to SA startup Intergreatme (see this story).

The African Crowdfunding Association is reviewing Uprise.Africa and its compliance with the association’s Charter of Good Conduct

In an email to Ventureburn today, Howard (pictured above) pointed out that crowdfunding is largely unregulated in Africa and that the association aims to drive the implementation of appropriate regulation across the continent.

In the absence of regulation, the association serves to protect the industry through the voluntary compliance of its Members with our Charter of Good Conduct, she explained.

She said the association’s review will include a re-assessment of Uprise.Africa’s compliance with the association’s Charter of Good Conduct.

The association would issue a statement following the conclusion of the review, she said.

She noted that Uprise.Africa is a unique platform in Africa in that it is regulated — by the Financial Sector Conduct Authority (FSCA), under the Financial Advisory and Intermediary Services (FAIS) Act.

“ACfA will ensure that its members learn the lessons of this situation, and we may decide to convene media in a discussion around the journalistic coverage of crowdfunding campaigns — especially securities-based campaigns — so that principles of consumer protection are respected,” she added.

Said Howard: “It is critical that this industry evolves in a regulated way in order for it to serve the broader investor and entrepreneur ecosystems effectively”.

Read more: Questions for Uprise.Africa over alleged fake R25m Intergreatme crowdfunding pledge

Featured image: African Crowdfunding Association CEO and chairperson of the board, Elizabeth Howard (Twitter)