Chipper Cash a leading company in the promotion of financial inclusion through the use technology has launched US Fractional Stocks in Uganda to allow low income earners invest in buying shares of big companies in the US.
The development is premised on the need to shift from the most popular investment options such as land and real estate, treasury bonds, T-bills, and fixed deposits which are often big-ticket investments and require a significant cash outlay from investors.
During the launch, Chipper Cash Co-founder and CEO, Ham Serunjogi said that such investors don’t favor first-time investors usually the younger population that can’t build wealth this way as they are either still dependent on their caretakers or simply don’t have enough disposable income to spare.
Serungoji said that Fractional shares as a new initiative on the investing block, are crucial to making investing in stocks easier and more accessible, especially for African countries with lower valued currencies.
“Today, we’re launching a revolutionary product, U.S. fractional stocks; this product is probably our most impactful product since the launch of the original Chipper app just three years ago,” Serunjogi said.
Serunjogi explained that, “For the first time ever, Ugandans of all economic backgrounds will be able to invest as little as $1 or 3,500 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,” Serunjogi said.
The CEO noted that with the launch of Chipper’s Global Stocks Investing product, Ugandans both old and young can easily invest in publicly traded global companies such as Facebook, Amazon, Tesla, Netflix among others.
Chipper Cash is the first company to offer fractional stock investing in Uganda. And the African fintech startup is licensed and regulated by the Capital Markets Authority.
Serunjogi argues that, “There has been an uptick in the awareness and demand for safe investments by Ugandans in recent years and while goal-based saving has taken center stage (with many banks, insurance companies, and SACCOs offering this service, investments in equities is key to achieving financial independence and building long-term wealth.
“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,” Serunjogi said.
Through its partnership with Drive Wealth LLC, a 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.
Previously, investing in U.S equities required high minimums and was only accessible by high net-worth individuals. This effectively priced 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 ETFs, with little or no minimum requirements.