News Nuggets Special: Highlights from FMAS 23

FMAS 23: Who Grabbed the Awards?

Finance Magnates Africa Summit (FMAS 23) has identified the industry leaders and best platforms offering services in Africa to hand out the awards. These names signify the growing trading industry in Africa, and how big brands are lining up to capture the market.

• Best Multi-Asset Broker in Africa Award – Fxview
• Best Forex Spreads in Africa Award – AAAFx
• Best IB/Affiliate Program in Africa Award – BDSwiss
• Best CFD Broker in Africa Award – FP Markets (First Prudential Markets)
• Best Over-the-Counter (OTC) in Africa Award – IFX Brokers
• Most Innovative Broker in Africa Award – Kwakol
• Best Partner Programme in Africa Award – Tickmill
• Best Trading Experience/Fastest Execution Broker in Africa Award – TradingPro
• Best Customer Service Award in Africa – XM
• Best ECN/STOP Broker in Africa/Most Trusted Broker in Africa – TDMarkets

FMAS 23: Mobile Phones Dominates Africa

While discussing the payment trends in Africa, the COO at Zotapay, Nimrod Cohen, highlighted the importance of mobile phone-based payment systems in the continent.

"The main trend [in Africa] is definitely the usage of mobile phones for making digital payments. The usage of mobile phones [is] constantly increasing, especially in Africa, where they also have mobile money," Cohen said.

"Although there are some gaps around efficiency in between the age of mobile phones, payment methods and card schemes."

"One of the trends we have seen from business customers or large corporate side is the need for... direct integration [of payment infrastructure] into their line of business," said Catherine W. Muya, the Head of Digital Payments at Absa Bank.

Opportunities in Africa

CFP Wealth Adviser & Director PSG Wealth R21 thinks that "there are quite a lot of opportunities in South Africa."

South Africa’s FSCA States Major Challenge It Faces

South Africa’s financial watchdog says its biggest challenge is striking a balance between promoting innovation and protecting consumers. Awelani Rahulani, the Head of the Fintech Department at the Financial Sector Conduct Authority (FSCA) stated this during a fireside chat at the Finance Magnates Africa Summit 2023.

Rahulani explained: “As a regulator, our number [one] challenge at the moment is how to strike the balance between promoting innovation and at the same time ensure that consumers are protected from the risks that emanate from these innovation[s].”

“The establishment of our innovation hubs puts us in a position where through our sandboxes we are able to test some of these innovations, identify risks involved and license them from an informed perspective. …however, it’s quite a delicate task trying to balance these two things.”

Why Brokers Are Opening Up in Africa: Exness

Exness, a top FX/CFDs brokerage brand, says a lot of retail brokerages are establishing their presence in Africa because the continent boasts of one of the largest growth rates among emerging markets economies.

Damian Bunce, the Chief Customer Officer at Exness, stated this while speaking at FMAS 23 during a session on opportunities for new revenue streams and leading brokers’ strategies for African markets.

“We can see that the regulatory framework in this country (South Africa) is undergoing good reform. The regulators are active, and this is a good way of creating trust,” said Bunce.

Bunce further explained: “I read recently that in terms of emerging markets, behind China and India, Africa has got the largest growth. So, why won’t you for example want to be involved in a country like Nigeria with a population of over 200 million people, in Nigeria and here (South Africa) with 60 million."

“These are clear opportunities in this part of the world and that is why we are seeing an increasing number of global respectable brokers opening offices and setting up with the regulators here.”

CEO Warns Brokers against Losing FX Trading in South Africa

Ref Wayne, the CEO of forex community ForexAMG, has warned brokerages in South Africa about the potential for losing the demand for trading in the country if they continue to ignore investment in organic traffic.

The South African author and forex specialist, who is well known as the pioneer of forex trading in South Africa, noted that only about 7% of the country’s population is into retail forex trading; meaning that there is a need to create more demand.

“I’m saying to the brokers: There are only about 200,000 traders in South Africa. We are 40 million-plus; brokers need to invest in advertising and create new organic traffic,” said Wayne during a workshop on online trading in Africa at the FMAS 23.

He further explained: “Organic traffic means that if this person is already a forex trader, then I’m not looking for them to be my client. I’m looking for a doctor to be my client."

“If brokers do not invest, as they are making millions and billions, in creating organic traffic through advertising and sponsorship, soon enough, they will lose the demand for trading.”

Pictorial Highlight from FMAS 23: Day 3

Experts speak at the session, 'Crypto in Africa: Crypto Continent in the Making?'

Seasoned during the session 'Make It or Break It for Brokers in Africa & Beyond' discussed the most crucial aspects of the trading business in Africa and beyond.