For the first time in Uganda’s financial markets history, Ugandans or anyone resident in Uganda will be able to invest in publicly traded global companies such as Facebook, Amazon, Tesla, Netflix, etc from anywhere in the world via their phones, thanks to Chipper Cash’s Global Stocks Investing product.
Launched in partnership with DriveWealth LLC, a US-based pioneer in fractional investing and embedded finance, Chipper Cash empowers the average Ugandan to build long-term wealth with safe and affordable access to the U.S stock markets.
“Today, we’re launching a revolutionary product, U.S. fractional stocks,” Ham Serunjogi, Co-founder and CEO of Chipper Cash, financial services and fintech executives at the product’s breakfast launch, held today at Kampala Serena Hotel.
“This product is probably our most impactful product since the launch of the original Chipper app just three years ago,” he said.
Fractional shares, largely billed as the new kid on the investing block, are crucial to making investing in stocks easier and more accessible, especially for African countries with lower valued and erratic currencies as well as limited financial investment products.
Chipper Cash the African fintech startup, that has now gone global, is the first company to offer fractional stock investing in Uganda. The service is licensed and regulated by Uganda’s Capital Markets Authority.
The service provides a credible alternative investment option to many individual investors who have often been locked out of financial markets for either lack of options and or higher cost of entry, hence resorting to other traditional investment vehicles such as land and real estate.
Rarely do Ugandan individual investors invest in stocks, treasury bonds, T-bills, and fixed deposits as they are often big-ticked with big cash outlays. This usually means that first-time investors and those without enough disposable income to spare, can’t build start building wealth this way.
“For the first time ever, Ugandans of all economic backgrounds will be able to invest as little as USD1 or UGX3,500 Uganda Shillings in the world’s largest public companies listed on the New York Stock Exchange – when we talk about unlocking global opportunities, this what we mean. As a proud Ugandan, it means so much to me that we get to launch a product that will empower my fellow countrymen and women,” Ham reckons.
Chipper Cash says that in the recent past, there’s been an uptick in the awareness and demand for safe investments by Ugandans but, while goal-based saving has taken centre stage, with many banks, insurance companies, and SACCOs offering this service, investments in equities, which are major building blocks of financial independence and building long-term wealth are yet to be embraced.
“Wealth creation is one of the most powerful ways of driving economic and social development in any country. For too long, many tools that offer the ability to generate and store wealth have remained inaccessible for too many, for too long. This product, the Chipper fractional stocks product, fixes precisely that problem,” says Ham.
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Previously, investing in U.S equities required high minimums and was only accessible by high net-worth individuals, effectively pricing out first-time investors. With Chipper Cash, users can invest on a dollar equivalent basis (i.e., fractional shares) in over 6,000 U.S. securities and Exchange Traded Funds (ETFs), with little or no minimum requirements.
“Yes, you heard that right; anyone can invest. The entry point is USD1. And with over 1,000 global companies listed on the Chipper Stocks, you can invest in U.S./international equities and build a global portfolio that lasts through time. The best part, is watching your money grow as these businesses grow,” Chipper Cash said in a media statement released after the launch.
“Chipper Cash is blazing the trail in using technology to drive financial inclusion in Uganda and the continent through its overall value proposition of local and international transfers, crypto offerings, airtime, data, and bill payments. Now, users can also take advantage of its easy-to-use and affordable investment product,” the company added in the statement.
Unlocking global opportunities and connecting Africa, one transaction at a time
Speaking at the launch, Dan Tumuramye, the Country Manager, Chipper Technologies Uganda Ltd said that Chipper which launched in Uganda three years back with only one product, has now fone live across multiple continents and various countries in Africa.
“Today, Chipper prides itself as the leading local P2P and cross border payments platform in Africa with over 5 million users and a service offering that extends to airtime, data, trading, bill payment, virtual cards and APIs.
Our mission is to unlock global opportunities and connect Africa, one transaction at a time. The launch of our Stocks product in Uganda today marks yet another step towards accomplishing that,” he said.
Mr Tumuramye thanked the various stakeholders who are building with and or building on the Chipper platform.
“For the Stocks product which we’re launching today, I would like to thank our partners Drive Wealth and the Capital Markets Authority for walking this journey with us.Chipper’s existence globally and in Uganda would not be possible without the invaluable partnerships we’ve made. Our platform is built on the rails of different telecom companies and a network of aggregator partners working with various regulators,” he said.
