Don't invest unless you're prepared to lose all the money you invest. This is a high - risk investment and you are unlikely to be protected if something goes wrong. 

Risk Information

Estimated reading time: 2 min

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    • If the business you are investing in fails, there is a high risk that you will lose 100% of your money. Most start-up and early-stage businesses fail.
    • Advertised rates of return aren’t guaranteed. This is not a savings account. If the borrower doesn’t pay you back as agreed, you could earn less money than expected. A higher advertised rate of return means a higher risk of losing your money. If it looks too good to be true, it probably is.
    • Certain of these investments can be held in an Innovative Finance ISA (IFISA). An IFISA does not reduce the risk of the investment or protect you from losses, so you can still lose all your money. It only means that any potential returns will be tax free.
    • Checks on the businesses you are investing in, such as how well they are expected to perform, may not have been carried out by the platform you are investing through. You should do your own research before investing.
  2. You won't get your money back quickly
    • Many bonds last for several years, so you should be prepared to wait for your money to be returned even if the business you’re investing in repays on time.
    • You are unlikely to be able to cash in your investment early by selling your bond. You are usually locked in until the business has paid you back over the period agreed.
    • The platform does not offer a secondary market. While another investor may be interested in buying your investment, there is no guarantee you will find a buyer at the price you are willing to sell.
  3. Don’t put all your eggs in one basket
    • Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well. A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
  4. You are unlikely to be protected if something goes wrong
    • Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
    • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated platform, FOS may be able to consider it. Learn more about FOS protection here.

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

For further information about investment-based crowdfunding, visit the FCA’s website here.

Session log out

You haven't used your session for a while. For your security, we will log you out soon.

100

WHAT IS THE ENERGISE AFRICA INNOVATIVE FINANCE ISA (IFISA)

With the Energise Africa IFISA you can invest to support pioneering businesses in sub-Saharan Africa, targeting potential tax-free returns of up to 8%

Browse IFISA Investments
Start the journey Sign in

WHY SHOULD YOU SET UP AN IFISA?

Invest in clean energy and solar opportunities

600m people need energy access

Earn up to 8% tax-free return with a positive impact

HOW IT WORKS


The Energise Africa IFISA is designed to be simple to use and flexible to meet your needs:


  • Invest in projects you believe in from only £50
  • Set up a new IFISA or transfer an existing ISA to us
  • Returns on your investment are tax-free
  • Withdraw your ISA earnings from your account at any time or reinvest them into another project

YOUR IFISA QUESTIONS ANSWERED

What is the Innovative Finance ISA (IFISA)?

The Innovative Finance ISA or IFISA, was established in 2016 to enable investors to hold, tax-free, peer-to-peer loans, and other approved crowdfunded debt instruments, such as bonds. The IFISA was launched in recognition by the UK Government of the growing role that crowdfunding is having in bringing investors and borrowers together outside of the mainstream banking sector. Energise Africa offers its members the option of opening an IFISA in which eligible investments can be held.

How does an Energise Africa IFISA work?

The Energise Africa IFISA is designed to let you get the same benefits you’re used to from a traditional Cash or Stocks & Shares ISA but enables you to invest into our crowdfunded bonds issued by sustainable energy companies. This gives you the freedom to use your money to help increase the access to sustainable energy for families in sub-Saharan Africa while balancing the risk of this kind of investment with the tax-free returns on any interest earned within your IFISA.

Can I transfer an existing ISA?

Yes. If you have already built up tax-free savings in your ISAs in previous tax years you can transfer some or all of these funds to our IFISA. You need to be a registered member of Energise Africa to do so. Before starting an ISA transfer you'll need to sign-up and complete our registration process. Existing users need to be logged into their account before starting. To begin the ISA transfer process, from the Account button in the top-right of the screen, select IFISA from the menu and click on New Transfer. Get more information on the ISA transfer process here:

How much can I invest in an IFISA?

The new IFISA allows you to subscribe up to £20,000 during the tax year. All returns are tax-free so you can make the most of your annual ISA allowance while creating a positive impact on people and the planet.

*Tax-free status is individual and subject to changes in legislation. Please consult a tax professional if you are uncertain about your eligibility.

What offers can I invest my IFISA in on Energise Africa?

All the bonds listed on Energise Africa are eligible to be held within an IFISA. We're always working hard to bring new projects to our investors, so check our investment page regularly.

Investing on energiseafrica.com involves risk, including the loss of all of your capital, illiquidity (the inability to sell assets quickly or without substantial loss in value), and it should be done only as part of a diversified portfolio.

Never invest more than you can afford to lose and never make investment with borrowed monies. Investment opportunities on this platform are targeted solely at investors who understand these risks and for whom such investments are suitable. Lendahand Ethex Ltd does not give investment advice or recommendations regarding investment opportunities, and any investment decision must be made only on the basis of all of the information provided by the issuer for that investment opportunity, including (without limitation) the relevant Investment Memorandum (IM) that is available to registered members of the platform. Please read the Risks section of our site to learn more about the risks associated with the products offered on this platform.

The investment opportunities on energiseafrica.com are not an offer to the public in any jurisdiction and are available only to registered members of the platform who have certified that they are eligible to invest. Any person who is not resident in the United Kingdom who wishes to view these investment opportunities must first satisfy themselves that they are eligible to do so under the securities laws and regulations applicable to them. This site does not constitute an offer of, or the solicitation of an offer to buy or subscribe for, any securities to any person in any jurisdiction to whom or in which such offer or solicitation would be unlawful.

In respect of its regulated activities, Lendahand Ethex Ltd trading as Energise Africa (FRN 776908) is an appointed representative of Share In Ltd (FRN 603332), which is authorised and regulated by the Financial Conduct Authority.