Today almost every e-commerce book being written with no substantial chapters on Africa as a major market be it on fast moving consumer goods, professional consultancy services, Fintech or conventional financial services is an open disservice to its authors and readers.
Africa’s growing appetite for e-commerce and adaptation to world technological advancements cannot be more evident than a mere look at growth millions of internet users in Africa, which is perhaps second-largest internet-user population on the planet, just after China, Asia.
These portents, Africa as a viable destination for both direct and indirect investments and a clear indication that Africa has reasonably overcome the barrier to geographical location in her quest to actively participate in the global business.
Taking this further home, Kenya both as an investment hub in East Africa and a home for multinational companies and a host to many world’s organizations, her position as a gateway to access the wide African market stands out.
Kenya’s M-Pesa among other FinTech solutions traces their proud roots to Kenyan’s innovative population.
It’s on this background, that we expect an upsurge in the number of online forex brokers and traders in this region. With an already existing regulatory framework, licensed operators, and knowledgeable population, both investors and traders stand to benefit in terms investment diversification and penetration of trades on alternative asset classes.
With stringent regulatory measure being meted on jurisdictions that were traditionally friendly, online forex brokers are constantly on the look out to emerging markets. One such a market, is Kenya and by extension progressive African countries like South Africa and Nigeria.
Below factors hold in favor of Kenya’s online forex broker license
• Relatively faster approval period of the license.
Most jurisdictions granting of such licenses takes from six months to 12 months, on the contrary a Kenyan Forex Broker license on average takes from three months, upon submission of all the required documentation.
• Availability of banking institutions to support this kind of business.
Those with experience will attest that one of the challenges facing regulated forex brokerage businesses around the world is finding the right banking institution willing to open a banking relationship. Kenya, with over forty (40) licensed banks, the licensees will enjoy a variety of options to choose from.
• Comparatively low set up costs.
In terms of operational costs like office rent, staff cost and capital requirements, Kenya is a competitive jurisdiction to set up and operate forex business.
• Availability of ready market and internet infrastructure.
Substantial penetration of affordable internet connectivity, and smartphone access among the youthful growing population serves to offer the desired demand for forex traded products. Growing interest in forex trading is notably among the youthful population to a majority considered as a source of livelihood
Kaith Consultants https://kaithconsultants.com/ is a bespoke Investment & Business Consulting firm registered and licensed in the republic of Kenya to engage in the practice of Investment and Financial Analysis, perform investment advisory services and investment transactions. Contact us at info@kaithconsultants.com for customised information.