Bamboo Expands to South Africa Following Introduction of Nigerian Stocks on its Platform
What’s this about?
- Bamboo, a Nigerian online stock platform, has expanded to South Africa, allowing users to invest in US stocks via their smartphones after obtaining a financial services provider license from the South African Financial Sector Conduct Authority (FSCA).
- Bamboo’s CEO, Richmond Bassey, emphasized South Africa’s robust investment environment and advanced regulatory frameworks as favourable for the company’s expansion, following similar moves in Ghana in 2022.
- In May 2024, Bamboo launched Nigerian stocks on its platform, offering shares in major companies like Access Holdings, MTN Nigeria Communications, Dangote Cement, and Nestle Nigeria, following a digital sub-broker license from Nigeria’s Securities and Exchange Commission (SEC).
Zoom in…
Bamboo, an online stock platform based in Nigeria, has commenced its operations in South Africa, enabling users to invest in US stocks directly from their smartphones through the platform.
This comes as the startup obtained a financial services provider licence from the South African Financial Sector Conduct Authority (FSCA). Bamboo now operates in three African countries, including Ghana and Nigeria.
Co-founded in 2019 by Bassey and Yanmo Omoregbe (COO), Bamboo makes investing in all types of asset classes easy. It offers Nigerians the necessary resources for selecting stocks and exchange-traded funds (ETFs) to reach their investment goals.
The startup provides fixed returns with an extensive collection of investment content and education tools designed for users investing in US stocks, comprising almost 75% of its client base.
In January 2022, it raised a $15 million Series A funding round led by Greycroft and Tiger Global to accelerate its growth, move into new markets and launch more products. It claims to have over 500,000 registered users.
Context
In September 2022, the startup launched in Ghana and partnered with 10th Capital Investments, an investment company in the country. Also, it revealed plans to work closely with Ghana’s Securities and Exchange Commission, having received a No Objection Letter from the regulator.
In May 2024, the online stock platform announced the launch of Nigerian stocks on its platform, which will make it offer stocks of Nigerian companies, including blue-chip firms like Access Holdings, MTN Nigeria Communications, Dangote Cement, and Nestle Nigeria.
This came after it received a digital sub-broker licence from the country’s Securities and Exchange Commission (SEC) to operate in its capital market and list securities on its platform.
The startup’s account was among those frozen by the Central Bank of Nigeria (CBN) in 2021 for allegedly engaging in illicit forex transactions. It was unfrozen in 2023.
What they’re saying…
Bamboo CEO and Co-Founder, Richmond Bassey, highlighted that South Africa has historically been one of the more investment-forward countries in Africa. According to him, the Johannesburg Stock Exchange (JSE) All-Share index has consistently shown strong performance compared to other emerging markets.
He mentioned that South Africa has advanced regulatory frameworks designed to protect investors, positioning it favourable for Bamboo’s expansion in the continent.
Source: techpoint.africa
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