Leading the charge are a handful of Nigerian startups that have built apps that allow retail investors to access stock markets and foreign asset classes in markets like the U.S. and elsewhere.
Bamboo, Chaka, Trove and Rise Vest have all emerged from the West African country in recent years, promising to help Nigerians access cross-border investment opportunities as a way to hedge against exchange rate volatility and inflation.
Nigeria’s macroeconomic situation has presented a challenge to investors who are limited to high-risk, Naira-based assets.
Trove, the basic model is similar to well-known investment and trading apps like Robin Hood, which allows users to access fractional shares, with Trove acting as an intermediary enabling the transactions.
While Nigeria is a hotbed for FinTech innovation, the challenge of depreciating currencies and limited access to dollar-based investments is one that other African countries face, too.
Opportunities in other African markets haven’t been lost on Rise Vest’s Nigerian peers either. For example, Bamboo officially launched in Ghana in September, which happens to be one of the markets Rise Vest is eying up.
Beyond regional expansion, the success of Nigeria’s investment apps will be their ability to empower users with a clear and intuitive interface.