• Sunday, December 10, 2023
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How Nigerians can invest N1,000 in foreign investments, earn in dollars

How Nigerians can invest N1,000 in foreign investments, earn in dollars

With as small as N1000, Nigerians can now tap into the global investment market, thanks to investment-tech companies like Chaka who are connecting Nigerian businesses and individuals to global financial markets.

The advent of technology and the birth of investment-tech companies have solved the problem of accessibility which allowed few Nigerians with certain kinds of connections and funds to make dollar investments.

“Start earning in dollars. Get started with as little as N1,000,” the start-up which recently partnered TradingView to boost borderless investments for Africans said.

The wait to accumulate significant investment capital to earn fatter returns is one of the reasons many Nigerians are yet to start their investment journey.

Low per capita income which has been declining since 2015 on account of slow economic growth that has remained lower than population growth is another factor.

But with investment-tech companies, the investment process has been democratized as the Fintech companies are serving as ‘passports’ for local investors to access the international market from the comfort of their palm.

Rated 4.2-star, Chaka’s investment App has been downloaded by more than 1000 users.

Read also: Nigeria’s stock market gains N317bn as investors buy Airtel, others

Following the low-interest-rate environment in Africa’s largest economy coupled with the high inflation rate which dampened real return on investment, Nigerians’ appetite for dollar assets increased and consequently gave more popularity to investment-tech companies.

As a result, Nigeria’s Securities and Exchange Commission (SEC), the industry regulator, rolled out plans to licence the innovators in the space to provide a form of clarity to their activities.

Chaka was the first company in the tech-investment space to receive the Sub-Broker Serving Multiple Brokers Through a Digital Platform License.

The permit enables Chaka to offer stocks directly to Nigerian investors. The licence also lets the company work with multiple stockbrokers and help digitize their services.

Chaka’s role in the creation of the new license by SEC

Following the restriction of Chaka’s operations by SEC in December 2020, the company’s team worked closely with the Commission to accelerate a solution. The SEC was committed to ensuring that only players who are regulated can operate within the space to ensure investor protection and transparency within the market without stifling innovation.

These delegations then led up to the creation of the Digital Sub-broker license.

In the long term, Chaka said it expects more opportunities for Nigerians to grow and build wealth and it expects more innovative initiatives from the SEC.

How Chaka operates within Nigeria

Through its mobile app and other digital products, Chaka provides access to 11,000 companies trading on the Nigerian and U.S. markets. To achieve this, it partnered with regulated brokers like Citi Investment Capital to ensure its operations are within SEC’s purview and registered with the Nigerian Stock Exchange (NSE).

It also partnered with local capital market authorities such as the Central Securities Clearing System Plc (CSCS) to facilitate safekeeping and quick settlement of all securities traded on Chaka. Chaka marries its strict commitment to compliance with its secure, reliable technology to enable companies and individuals to safely access digital investments without restrictions.

The fintech company recently secured a $1.5M pre-seed funding round, to spot investment opportunities in global markets.

Just the fundraising, Chaka said it partnered with TradingView, the world’s leading online charting platform to spot investment opportunities in global markets.

The partnership will enable pro-traders and businesses across Africa to have direct access to over 11,000 assets trading on international stock markets, advanced charts, and trading ideas, among other key trading advantages.

It also made Chaka the first African broker to launch TradingView for retail investors and businesses in Africa. The benefits of this collaboration to Chaka’s clients include access to advanced tools for effective trading analysis, access to a wide trading community and real-time trading ideas, personalized onboarding, and account support.