Aigbovbioise Aig-Imoukhuede On The Future Of Africa’s Capital Markets

By Aminu Adamu

In this exclusive interview with Pan African Vision’s Aminu Adamu, Aigbovbioise Aig-Imoukhuede, the Managing Director of Coronation Asset Management, speaks extensively on shaping Africa’s economic trajectory, the role of financial service providers (FSPs) and fintech in unlocking the full potential of capital markets across the continent.

What role do you believe financial service providers (FSPs) and fintech play in unlocking the full potential of capital markets across Africa, and how can they help drive industrial growth and democratize wealth creation ?

FSPs and fintech are pivotal in creating accessible, intuitive financial systems. Coronation Group is committed to reinventing wealth creation in Africa, offering solutions that democratise wealth at all levels. By leveraging digital platforms and fintech innovation, we connect issuers with investors and provide tools that promote financial literacy and inclusion. This approach drives industrial growth by ensuring that capital markets are accessible, even to smaller investors, fostering a culture of long-term investment.

What are some of the most significant challenges facing Africa's capital markets, and how can FSPs and fintech address these challenges, particularly in terms of low market liquidity, knowledge deficits, and the digital divide ?

Africa's capital markets face barriers like low liquidity, limited listed securities, and knowledge deficits. Coronation addresses these by promoting financial literacy through initiatives like the Investment Academy, which has empowered over 100,000 users. Additionally, our digital solutions bridge the divide by providing rural areas access to financial tools, encouraging a robust investment culture. Fintech platforms, such as mobile money, also play a critical role in reducing these challenges.

Can you share examples of how Coronation has leveraged fintech to bridge gaps in the market, and the role of bespoke financial products in addressing underserved markets ?

Coronation has been at the forefront of fintech innovation, offering platforms like Fiducia, which provide flexible financing solutions to businesses, reducing risks and improving cash flow. Our Wealth offerings enable smaller investors to access opportunities traditionally reserved for high-net-worth individuals. By gamifying investment education, we also introduce underserved communities to investment principles, fostering inclusivity.

How do you see fintech innovation impacting Africa's capital markets in the next 5-10 years, and what promising innovations are emerging ?

Fintech will play an essential role in the future of Africa's capital markets by driving financial inclusion, improving efficiency, enhancing transparency, and providing solutions tailored to local needs. Mobile money, digital payments, and platforms like Fiducia are examples of innovations that boost GDP and democratise wealth creation.

Promising emerging innovations include the adoption of blockchain and digital assets allowing fractional ownership of high-value assets like real estate or bonds, crowdfunding platforms for businesses to raise capital, bypassing traditional barriers like stringent lending requirements AI, and intuitive data analytics and regulatory technology (Reg Tech) which help financial institutions meet compliance requirements efficiently, ensuring the growth of capital markets is aligned with regulatory standards.

Over the next decade, Coronation plans to lead this transformation, ensuring that technology bridges existing market gaps.

What role do you believe impact investing can play in sustainable economic growth in Africa, and how can FSPs balance growth with risk management and compliance?

Impact investing is crucial for fostering economic growth that benefits both investors and the broader community. Coronation balances this by offering structured financial products that are both innovative and compliant with regulatory standards. Our focus on digital platforms and inclusive financial solutions ensures that economic growth aligns with societal progress.

How can policymakers and regulators create an enabling environment for fintech and capital market development in Africa?

Policymakers and regulators must establish a framework and harmonised standards that foster innovation while ensuring robust risk management. Coronation supports collaborative efforts between regulators and industry players to build digital infrastructure, improve financial literacy, and create accessible financial products. Partnerships with traditional institutions, such as Access Bank, enhance the development of these ecosystems.

What significant opportunities and challenges do FSPs and fintech face in Africa, and how do you see them evolving in the next 5-10 years?

Opportunities for FSPs and fintech include the rapid adoption of mobile money, increasing digital literacy, and growing demand for financial inclusion. However, challenges like regulatory constraints and infrastructural deficits persist. Coronation aims to navigate these by investing in technology and partnerships, ensuring financial services evolve to meet market needs.

How can FSPs and fintech address financial inclusion for underserved markets in Africa?

Financial inclusion is central to Coronation's mission. By leveraging mobile money and digital payment platforms, we reach underserved communities and encourage participation in the financial ecosystem. Initiatives such as gamified education on investments help bridge the gap for populations with limited financial knowledge.

What advice would you give to young entrepreneurs in Africa's financial sector ?

Aspiring entrepreneurs should focus on understanding local market dynamics, building technology-driven solutions, and fostering partnerships. Coronation’s success is rooted in these principles, demonstrating how innovation, resilience, and collaboration can lead to transformative impacts.

What trends will shape Africa's capital markets, and how can FSPs position themselves to take advantage ?

Key trends include the rise of mobile money, digital payments, and fintech platforms targeting underserved markets, creating opportunities for embedded finance. Coronation is positioned to capitalise on these trends by investing in infrastructure and offering bespoke financial products. By connecting issuers and investors through digital solutions, we continue to shape Africa's financial future.

*Culled from February Issue Of PAV Magazine