By Andrei Skvarsky.
London-based online financial broker Infinox Capital is expanding its business into Namibia, Botswana, Mozambique, Tanzania and Ghana after a recent launch in Nigeria and plans to set up a continental hub in South Africa in the coming months.
Young people make up a large proportion of Africa’s population and have increasing access to information and communication technologies.
Infinox expects the continent’s middle class to grow as a result, according to a statement from the company, which deals in foreign exchange and trades in equities, indices, futures and commodities.
Infinox’s business is focused on contracts-for-differences (CFD), financial deals stipulating that a potential difference between the price at the opening of trade and that at its closure will be paid by the buyer to the seller or vice versa depending on which price is higher.
There already are about 1.3m traders in Africa, Infinox managing director Ray Mawji said, citing South African website ForexBrokers.co.za.
Mawji said Infinox had recently launched an app to make trading easier in Africa. It is an interactive device enabling clients to “see what other traders are doing, and follow and engage with them”, he said.
“We have observed that the African markets we are expanding into are already seeing a significant increase in potential investors showing an interest in trading stocks and other products by downloading various industry-related apps, and being more financially savvy,” he says.
Infinox pays a lot of attention to on-the-ground support for clients so that the firm should minimise what it does from its London offices.
“While it’s great to have an online presence and an app, the process still involves client’s money meaning that many may be apprehensive to invest and transact with a faceless organization,” Mawji said.
“For any financial institution, Africa is the place to be,” Mawji said.
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