By Kelly-Vera Molo
According to Finance magnates, “Micro-investing apps have taken investing to the next level without taking away from traditional investing”.
“Thus, the African continent, especially has seen a substantial surge in especially micro-investments, due to the remoteness through which it can easily be done by making use of either their computers at home, or more often, their smartphones and tablets” added finance magnate.
This is a trend that is new in most parts of Africa. Traditionally, investing in general does not seem to be popular amidst younger generations and the general consensus is that, it is for “old, rich people”.
However, this mindset has begun shifting drastically with the advent of technology, smartphones and phone apps that allow people to do anything remotely.
Investing can now be done from the palm of your hand, from anywhere in the world and at any time.
“Micro-investing apps have taken investing to the next level without taking away from traditional investing”. Finance Magnates said.
Due to the outbreak and the spread of COVID-19 on a global scale, many businesses were forced to close their doors and people were confined to their homes due to strict lockdown and quarantine procedures in an effort to curb the spread of the virus. An act that has grossly affected the world’s economies.
2020 has seen a majority of populations restricted indoors, having to work from home and having a significant amount of time that would otherwise have been hard to imagine a year ago, a lot of Africans have turned to options such as micro-investments.
With the ‘new normal’ due to uncertainties surrounding the return of normal economic activities in addition to stress related to the threatening of income, people are increasingly on the lookout for additional, or alternative ways through which they can secure income thus ensuring sustainability. Thus, the surge in micro-investments in Africa.
This trend favours the younger generations as many are exposed to technology and regarding the fact that, many have access to the internet, smartphones and computers thereby breaking the misconception that investing is only reserved for those who have substantial amounts of capital and disposable income.
Micro-investments allow African investor to invest small amounts, often automatically by making use of mobile-based platforms. It does not require a lump sum consisting of all the investor’s savings to become a successful micro-investor.
With micro-investment surging, the reopening of various economies, African micro-investors have had more ample opportunity to cast their investments toward industries and sectors that have shown significant strength, and which are set to emerge from this pandemic even stronger. COVID-19 has definitely set Africa on a new path towards growth.