Equiti Capital CEO explains why African fintechs should have a global outlook

The year 2020 witnessed a surge in interest towards African FinTech startups, with innovative companies like Chipper Cash and Jumia Technologies making headlines. Despite the attention, this interest did not always translate into actual investments in the sector. Will 2021 be the turning point for African FinTech players? Equiti Capital CEO, Brian Meyers, believes so. In a recent interview with CNBC Africa, Meyers discussed the challenges and opportunities facing the African FinTech industry. Meyers pointed out that the past few years have been foundational for many FinTechs in Africa, citing success stories like Chipper Cash receiving a $30 million investment in Series B funding and Jumia Technologies being listed on the New York Stock Exchange. These achievements have set the stage for further growth and increased investment in the sector. Equiti Capital, Meyers' company, is also actively looking to address key issues in the African FinTech space, including payments, financial literacy, and access to global markets. Meyers emphasized the importance of improving financial literacy across the continent and providing access to global markets for better investment opportunities. Despite the challenges posed by the COVID-19 pandemic, Meyers remains optimistic about the future of FinTech in Africa. He highlighted the significant increase in mobile money and online transactions due to lockdowns and remote work arrangements. Meyers acknowledged that while the pandemic may have slowed global investments initially, it has also accelerated the shift towards online financial services. The rise in online trading and the strong performance of asset classes like Bitcoin and US stocks have attracted many new traders to the FinTech space. Meyers warned newcomers to the market to be prepared for market corrections and fluctuations, emphasizing the importance of long-term investment strategies and global market access. He noted that many Africans are still predominantly trading local equities and bonds and missing out on the returns seen in global markets. Equiti Capital aims to bridge this gap by providing access to a wider range of financial products and opportunities. On the topic of venture funding, Meyers highlighted the success of companies like Chipper Cash in attracting investments from US and Western investors. He predicted that the trend of increased venture capital and private equity investment in African FinTech startups would continue and possibly grow in the coming years. Meyers sees a bright future for the African FinTech sector, with more investors recognizing the potential for high returns and impactful solutions to financial challenges in the region. With a global outlook and a focus on innovation, African FinTechs are poised for growth and success in 2021 and beyond.