The African Crowdfunding Association is probing the Uprise.Africa equity crowdfunding platform, Elizabeth Howard the associations CEO and board chair disclosed.
The non-profit association is the sole representative of the African crowdfunding platform. FSD Africa fully funds the organization but it has raised eyebrows over its false pledge to Intergreatme, a South African-based startup.
So many questions have arisen concerning the crowdfunding platform including its leader Qadir Tabassum. Another serious issue that needs investigation is the fake pledge of R25- million made to Intergreatme.
The African Crowdfunding Association is scrutinizing Uprise.Africa with regard to its adherence to the set Charter of Good Conduct. After the review is over, the association would release a detailed statement of its findings.
The association’s CEO noted that there is minimal regulation of crowdfunding in Africa. Its aim is, therefore, to push for stringent regulatory measures that will monitor crowdfunding in Africa.
Howard highlighted that without regulation, the association’s role is to cushion the crowdfunding industry. She added that this can be achieved if members willfully choose to comply with the association Charter of Good Conduct.
Uprise.Africa is supervised by the Financial Sector Conduct Authority (FSCA) under the umbrella of the Financial Advisory and Intermediary Services act(FAIS), making it one of the outstanding platforms.
The goal of the African Crowdfunding Association is to ensure efficient and effective service delivery in the industry. Therefore, it has vowed to regulate and streamline the industry so that investors get quality services.
Other platforms should avoid repeating similar mistakes in the future, so that clients build confidence and trust in them.