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Tag: SecondSTAX

  • SecondSTAX, NGX partner to increase African investments

    SecondSTAX, NGX partner to increase African investments

    A historic agreement to bring institutional investment to Nigeria’s capital markets was announced. SecondSTAX, an innovative technology startup, and Nigerian Exchange Limited (NGX) announced a relationship to enable direct investment from African institutional investors into Nigeria’s vibrant capital markets using a complex yet user-friendly digital platform.

    This project also involves Afrinvest (West Africa) Limited, a Nigerian capital market powerhouse competent in investment banking, securities trading, and asset management.

    Read also: SecondSTAX Partners with Ghana Stock Exchange, Nairobi Securities Exchange

    Bridging African Investment Gaps

    Nigeria has the biggest economy in Africa, so its capital markets have long been good places to invest. In 2020, Lagos’s stock market went up 50%, making it the best in the world and the best of Bloomberg’s 93 stock indices. Several companies on the stock market saw gains of 400%.

    Because African exchanges were segregated, these business opportunities were only open to Nigerians. SecondSTAX’s technology links Africa’s debt and equity capital markets and makes it easier for institutions and capital to spend.

    A Tech-Driven Approach to Investment

    SecondSTAX’s transparent, cloud-based interface simplifies Nigerian investments for institutional investors like licensed broker-dealers, asset managers, and large commercial banks. It also allows investing in native currencies, increasing asset accessibility and African wealth development.

    Eugene Tawiah, CEO and co-founder of SecondSTAX says, “We want to connect all of Africa’s capital markets so that investment flows more smoothly.” He says the relationship with NGX is significant for them to find profitable opportunities in Nigeria’s capital markets, which are usually out of reach for institutional investors outside Nigeria.

    Creating more investment opportunities 

    SecondSTAX already works well with the Nairobi Securities Exchange (NSE) and the Ghana Stock Exchange (GSE). They not only bring money to these exchanges, but they also make sure that Nigerian institutional investors can diversify their portfolios by investing in other capital markets on their platform.

    After the launch, the services will first be available to Qualified Institutional Investors who place a trade order worth at least USD 10,000.00. This limit will eventually be lowered, allowing more customers to use the services.

    Temi Popoola, CEO of NGX, praises SecondSTAX for their innovative approach to attracting institutional investments across Africa. This method aligns with NGX’s efforts to promote growth and innovation in the market through several different programs.

    Ike Chioke, Group Managing Director of Afrinvest, is also excited about the partnership. He says it could make it easier to spend and bring more money into Nigeria’s capital markets.

  • SecondSTAX Partners with Ghana Stock Exchange, Nairobi Securities Exchange

    SecondSTAX Partners with Ghana Stock Exchange, Nairobi Securities Exchange

    SecondSTAX, a technology company that develops solutions to improve intra-African capital and investment flows, introduced the SecondSTAX Portal in Kenya and Ghana. 

    This made it possible for institutional investors throughout Africa to quickly and directly invest in the Nairobi Securities Exchange and the Ghana Stock Exchange.

    With this initiative, licensed broker-dealers, asset managers, large commercial banks, and other institutional investors from across the continent will find it simpler to invest in Ghana’s and Kenya’s leading exchanges via SecondSTAX’s transparent, user-friendly, cloud-based portal. Collaboration between Databank Group and Kestrel Capital (East Africa) Limited (Kenya) facilitates the effort (Ghana). Additionally, investors will be able to invest in their currencies, opening up a wider choice of resources and possibilities for more Africans and paving the way for greater riches on the continent.

    The innovative platform, which is the first of its kind, has the potential to have a substantial impact on trading and increase market liquidity. Although the Nairobi Stock Exchange (NSE) and the Ghana Stock Exchange (GSE) are two of Africa’s busiest exchanges, their fragmented structures and a lack of data have restricted access to capital.

    Read also: Nomanini Launches StockNow App to help Africa Stock Retailers

    Other Things SecondSTAX is Up To

    For investment firms, SecondSTAX is developing technological solutions that will enable a smooth flow of capital and institutional investment across the continent. The SecondSTAX portal will consolidate all debt and equity capital markets in Africa, starting with Ghana and Kenya, making it simpler to access opportunities in pertinent markets. The gateway simplifies transactions by securely and effectively directing orders onto the established, mature capital markets infrastructure in full conformity with local regulations. As a result, investors have more power to help their clients and have the chance to increase their earnings.

    “Linking markets is a very important priority for us, something that we are also committed to as part of the African Exchange Linkages Project. We are happy with this complementary approach, and we look forward to working with SecondSTAX to explore more ways to scale up opportunities on our exchange. We believe that we must deepen trading within Africa, facilitate cross-border trading and make our markets more liquid, and platforms like SecondSTAX provide an effective tool for facilitating this agenda.”

    Geoffrey Odundo, Chief Executive of the Nairobi Securities Exchange Plc explains.

    Nomanini Launches StockNow App to help Africa Stock Retailers

    Stock exchange in Ghana

    An investor should consider various variables before choosing any security on the Ghana Stock Exchange. Research is often the foundation of a wise investment. When deciding whether to purchase shares on the Ghana Stock Exchange, an investor must take into account the previous performance of the firms, the industry in which the companies operate, as well as the expectation for future profit growth and dividend payments. An investor can get this research information by reading research reports created by stock brokerage firms or by asking a stockbroker for guidance.

    Anyone above the age of 18 may invest on the Ghana Stock Exchange. Such a person needs to be aware that investments on the Ghana Stock Exchange are long-term and subject to risk, particularly in the short term. Another requirement is having an investment goal and a timeline for when you plan to get your money back. The money needed for the venture itself is another prerequisite. Trust is something parents can invest in for their kids. Institutions may also invest their pension and provident funds on the Ghana Stock Exchange if the rules governing those funds enable such transactions.

  • Ghana’s SecondSTAX Raises $1.6M in Funding

    Ghana’s SecondSTAX Raises $1.6M in Funding

    SecondSTAX, a platform that lets broker-dealers, asset managers, pension funds, and institutional traders enter markets outside their own country, had recently raised $1.6 million in pre-seed funding from private investors and VC firms like LoftyInc Capital, Orbit54, and STEMeIn, to bolster its efforts.

    SecondSTAX, the co-founder of SecondSTAX and its chief government officer, offers a wealth of experience in such a daunting endeavour. He worked at Goldman Sachs for over a decade and managed consulting and software projects for businesses in the financial services and capital markets. Investors seem to be interested in this round start to become incrementally impactful in terms of being able to shift us from startup mode to an actual running concept generating meaningful revenue,” said the chief executive.

    Tawiah co-founded the corporation with Duke Lartey. SecondSTAX gives you access to debt and equity instruments through different African bond and stock exchanges. The B2B capital markets infrastructure platform also claims that it should assist in financing foreign businesses that must invest in developing and frontier markets on the continent. Funding organizations integrated into its platform may also keep assets in many currencies, reducing the risk of a single foreign exchange and the volatility of their profits, whether in Africa or abroad, according to Fintech.

    How does SecondSTAX work?

    To comprehend how SecondSTAX works, Tawiah suggests picturing the company’s platform as a layer in the order of a series of concentric rings. The first and second circles are institutional investors from developed markets and those from Africa interested in investing in a range of stocks and bonds available on African exchanges. The exchanges are found in the fourth circle and accessible by secondSTAX, the third circle.

    Read also: Cellulant Partners with Orange Money To Power Wallet Transfers For Botswana Banks

    “You’ve got exchanges where securities are traded in every nation. Nigeria is a silo, identical to Ghana, Kenya, South Africa, and so forth. SecondSTAX successfully aggregates those exchanges throughout the continent. It’s that one platform that hyperlinks all of them collectively. After that, as an institutional investor like Goldman Sachs in New York, Financial institution of America within the U.Ok., or a boutique agency out in Singapore, they’ve entry to this platform to touch every one of those exchanges.”

    The CEO claims that once the company infrastructure is steady operational, it will consider expanding its capabilities to serve B2C investment management applications. Then, using white-labelled applications created by brick-and-mortar brokers and powered by SecondSTAX or third-party wealth tech apps like Bamboo, HashApp, Robinhood, and Hisa, retail investors inside and outside of Africa would be able to access and trade cross-border stocks and bonds.

    “We are not distinguishing between brokers; they can be brick and mortar or startups. Our potential client base is much broader than one type of institution; so long as the broker has a digital play, they can use our infrastructure to access African exchanges.”

    Clickatell partners with CBN to expand eNaira services

    The company plans expansion

    The Fintech launched in 2020 is considering capital markets in Ghana, Kenya, Nigeria, South Africa, Morocco and Egypt. However, it will debut in the first two, providing market order routing for all stocks across the exchanges in Ghana and Kenya and permitting cross-border transactions within both capital markets through its sponsored broker agreements.

    According to Tawiah, the investment will enable SecondSTAX to expand into other nations by the end of the year and carry out the associated tasks, particularly those related to licensing and regulatory matters. Additionally, there are also plans to expand the personnel and strengthen the technology by creating new features that its clients demand. The chief executive said, “We anticipate the income from these customers starting to become increasingly influential in the next 18 to 24 months in terms of being able to transfer us from startup mode to a real functioning concept producing substantial revenue.”