In 2022, Sub-Saharan Africa witnessed a remarkable surge in remittance flows, reaching a total of $53 billion—a 6.1% increase from the previous year and surpassing pre-pandemic levels. These remittances play a vital role in supporting households across the region, accounting for an average of 5.2% of Sub-Saharan Africa’s GDP.
In this landscape, Volition Cap, a Nigerian asset management company, stands out as a trailblazer, helping Africans and diasporans invest their remittances to foster economic growth and financial security.
In a recent interview, Subomi Plumptre, the founder and CEO of Volition Cap, shared her insights on the investment opportunities in Africa and how her company is making them more accessible.
Volition Cap is pioneering a cooperative-based investment strategy aimed at empowering Africans in the diaspora to invest their remittances wisely. Plumptre, a former strategy and brand consultant with 15 years of corporate sector experience, recognized the financial vulnerabilities faced by middle-class Africans. Lacking robust social welfare structures, many individuals were at risk of financial insecurity, even with savings and pensions.
To address this issue, Plumptre began by creating an investment course, which has since been taken by approximately 10,000 people. Subsequently, she became a Securities and Exchange Commission (SEC)-licensed fund manager, establishing Volition Cap as a Pan-African and diaspora-focused asset management company and investment club. The core idea behind Volition Cap is to professionalize informal African investment clubs, providing them with the expertise and due diligence typically reserved for ultra-wealthy investors or hedge funds.
Volition Cap is actively exploring a variety of investment opportunities across Africa. Plumptre highlights two specific sectors: entertainment and media, as well as real estate.
Entertainment and Media: Africa has witnessed remarkable growth in its entertainment and media industries. The global success of Afrobeats music and the emergence of Nollywood, Nigeria’s movie industry, as the world’s second-largest, are notable examples. Volition Cap sees significant potential for project finance in these sectors, driving economic growth and job creation. However, the challenge lies in mobilizing local funding from within Africa to support these burgeoning industries fully.
Real Estate: Africa currently faces a housing deficit despite its vast land resources. Residential housing is a primary focus for Volition Cap, as the company seeks to contribute to addressing this pressing issue and unlocking opportunities for investment in real estate.
Looking ahead, Volition Cap is committed to transforming the dynamic of African diaspora remittances from mere gifts into sustainable investments on the continent.
by Tony O. Lawson
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