• About
  • Advertise
  • Privacy Policy
  • Contact
Tuesday, January 31, 2023
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Bamboo Remains Strong in the Face of Crisis in Ghanaian Economy- CEO

November 28, 2022
Stephen M.CbyStephen M.C
in Securities/Markets
0
Bamboo Remains Strong in the Face of Crisis in Ghanaian Economy- CEO

Richmond Bassey, the CEO of Bamboo

Richmond Bassey, the CEO of Bamboo, a Nigerian-born retail trading app, has stated that despite the challenges the country is facing, Ghana’s fintechs face a souring local market.

According to Mr Bassey, in spite of a weak local economy, a currency in free-fall, and tight market conditions globally, Bamboo retains optimism about its new Ghana operations. However, he noted that it’s not the same story for everyone as non-payment fintechs with individual and SMEs clients have been hit hard.

Worsening local and global economic conditions mean non-payment fintechs may face more headwinds. But Bamboo’s CEO said he is unfazed by the downturn.

RelatedPosts

GSE Index Plummets Following Balanced Day

Government’s New Tactics of Refusing to Grant Forex Cover will not Stem FX Outflow- Forex Analyst

Telecel to Become the Second Player After MTN Ghana to List on GSE After Takeover of Vodafone Ghana

Headwinds Building Up

Mr Bassey explained that before this round of crises put pressure on Ghana’s economy, an unpopular 1.5% levy on electronic payments had put pressure on revenues for payment companies.

The CEO added that Ghana’s public market has ranked in the top ten best stock exchanges in Africa in the past three years.

“In the year-ended 2021, Ghana’s stock market was the second-best performing public market in Africa (investors recorded a 38.59% return in US dollar terms, or +43.66% in local terms). This strong performance has undoubtedly encouraged local investment in Ghana’s publicly traded companies and funds. However, the local bourse has declined by 11.78% between November 2021 and November 2022.”

Richmond Bassey

However, coupled with raging inflation and a spiraling cedi, it is a fair assumption that investors may be reassessing their investments or at least investing in more attractive markets like the US.

“Bamboo appears to be banking on this. Even though the market isn’t doing well, I’d like to think that we are growing because we are educating people that even though it is not doing well, there are opportunities to invest.”

Richmond Bassey

Defying the Fate of Robinhood

Mr Bassey noted that he is being inspired by US retail trading app, Robinhood. He disclosed that Bamboo offers users educational tools including free premium content from popular investment education websites, Motley and Mywallst. But its main offering is a partnership with US-based DriveWealth LLC that allows Bamboo to buy fractional shares in US-listed companies and funds.

Meanwhile, Mr Bassey noted that Bamboo has raised a total of $32.6 million in funding over five rounds, including a $15 million Series A fundraise which was announced in January this year, 2021.

In contrast, Bamboo’s inspiration, Robinhood, isn’t doing very well. After peaking at 21.3 million in the second quarter of last year, 2021, the app’s monthly active users declined to 13.3 million in August this year. Robinhood’s users are also trading less than they did a year ago and the company failed to reach revenue estimates in the last earnings call held just three weeks ago.

With the downturn in publicly listed companies in the US, Bamboo users are becoming more cautious. “People want to invest for the long term,” CEO Bassey said. Users now spend more time in the app but are buying less of more, he stated. Exchange-traded funds (ETFs) like Vanguard are a growing favourite, he added.

Unlike Robinhood’s public filings which show a decline in engaged users, Bamboo’s CEO noted that Bamboo users spend about eight hours monthly on the app, up from just over five hours from the second half of last year, 2022.

“The economic conditions are impacting how much people want to invest, not their willingness to invest. What we are seeing is that volumes have grown. In the first half of 2022 we’ve seen that trade values have reduced, not the volumes. For more risk-averse investors, the company is considering offering an 8% fixed-yield product to Ghanaian users. The product is currently only available in Nigeria.”

Richmond Bassey

In the meantime, Bamboo appears to be doing well in general, but it is not clear if it can replicate its Nigerian performance in Ghana. Bassey believes that growth in new account openings reinforce his belief that there is still strong demand especially since most users appear to be purchasing company shares for the long term.

Ghana is suffering a twin debt and currency crisis. The economy is also struggling through record high inflation. The country’s debt servicing is expected to take up 47% of revenue in 2022. Negotiations for a $3 billion IMF rescue program are ongoing as the government scrambles to shore up falling revenues and prop up the value of the Ghanaian cedi.

A few months after Bamboo, an online brokerage app, launched in Nigeria in 2020, and it was flooded with emails from Ghanaians requesting access to the app. The waiting list from Ghana grew to 50,000. Two years later, this September, Bamboo opened access to Ghanaians after securing permission from Ghana’s Securities and Exchange Commission (SEC).

READ ALSO: Government Assists 30 Ghanaian Firms to Export Under AfCFTA

Related Posts

GSE Index Plummets Following Balanced Day
Securities/Markets

GSE Index Plummets Following Balanced Day

January 31, 2023
Exclusive: Ignorance, Major Reason for Low Women Participation in Forex in Ghana- Gifty Annor-Sika
One Top Story

Government’s New Tactics of Refusing to Grant Forex Cover will not Stem FX Outflow- Forex Analyst

January 30, 2023
Telecel to Become the Second Player After MTN Ghana to List on GSE After Takeover of Vodafone Ghana
Securities/Markets

Telecel to Become the Second Player After MTN Ghana to List on GSE After Takeover of Vodafone Ghana

January 28, 2023
GSE Fourth Time Lucky As Losing Streak Finally Ends
Securities/Markets

GSE Fourth Time Lucky As Losing Streak Finally Ends

January 27, 2023
Ghana Stock Index Remains on Losing Course
Securities/Markets

Ghana Stock Index Remains on Losing Course

January 26, 2023
A Bloody Day for Ghana Stock Exchange As Bears Resurfaced
Securities/Markets

A Bloody Day for Ghana Stock Exchange As Bears Resurfaced

January 25, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post

Bisa Kdei’s Words Of Encouragement Inspired My Career – Gyakie

Next Post

China’s Covid Protests Puts President Xi In A Bad Position

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.
SA Government Urges MTN And GRA To Do Everything Possible To Settle Their Tax Dispute
Finance

SA Government Urges MTN And GRA To Do Everything Possible To Settle Their Tax Dispute

by Priscilla Dziedzorm FiakpornuJanuary 31, 2023
Adopt Fiscal Measures In Curbing Inflation To Save Banks, Economy
Banking

Adopt Fiscal Measures In Curbing Inflation To Save Banks, Economy – Prof. Mensah

by Gifty BansahJanuary 31, 2023
Commercial High Court Orders Bank of Ghana to Produce Bank Statement of Capital Bank
Economy

Economist Advises Government to Stop Depending on Monetary Policy Rate Alone to Fight Inflation

by Stephen M.CJanuary 31, 2023
We Won’t Sideline Old Minority Leadership – Asiedu Nketiah
General News

Haruna Iddrisu Goes Unopposed In Primaries – Asiedu Netiah

by Samuel Yeboah OtibuJanuary 31, 2023
Parents Advised To Stop Imposing Careers On Their Wards
General News

Parents Advised To Stop Imposing Careers On Their Wards

by Emmanuel SarpongJanuary 31, 2023
Nigeria Experiences Cash Shortage Amid Redesigned Currency Swap
Africa

Nigeria Experiences Cash Shortage Amid Redesigned Currency Swap

by Comfort AmpomaaJanuary 31, 2023
SA Government Urges MTN And GRA To Do Everything Possible To Settle Their Tax Dispute
Adopt Fiscal Measures In Curbing Inflation To Save Banks, Economy
Commercial High Court Orders Bank of Ghana to Produce Bank Statement of Capital Bank
We Won’t Sideline Old Minority Leadership – Asiedu Nketiah
Parents Advised To Stop Imposing Careers On Their Wards
Nigeria Experiences Cash Shortage Amid Redesigned Currency Swap
Snow
FIND OUT MORE

The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In