Technology is going to be a catalyst in ensuring African women are uplifted economically, which will in turn empower the continent’s economy. Wealth8 is a “technology-driven platform designed to connect people with investment opportunities, by providing easy access to global investment products, as well as the ability to learn the language of investing.” Its co-founder and director, Bimpe Nkontchou tells AMAKA why it is imperative women are equipped with the right tools for wealth creation and shares her rules for investing.

The African continent is not the first region one associates with wealthy women. Nigerian-born, Bimpe Nkontchou wants to change that narrative and empower African women to build wealth. Raised by parents who were both medical doctors, it would not have surprised anyone if she also became a medical doctor or an academic. However, Nkontchou carved a different path for herself and studied law, and was a practising lawyer before she relocated to the UK in 1995.

According to Wealth8’s website, “Women still face a wealth gap brought on by unequal pay and career breaks, and yet they tend to live longer than men.” As such, women should benefit from long-term financial planning which takes these nuances into consideration. This is where Nkontchou and her team want to make a difference because they understand the unique financial challenges women face.

Through Wealth8, Nkontchou advocates that “All individuals, regardless of background, should be able to manage their finances and invest in the global markets to reach their financial goals.” To this end, one of Wealth8’s goal is to create access to investment opportunities and bridge the wealth gap for those who have been traditionally overlooked or underserved in the area of investments, in particular, black and multi-ethnic communities in the diaspora.

AMAKA: What is Wealth8 and how is it serving African women?

Bimpe Nkontchou:  Wealth 8 is a digital investment portal that gives users the ability to start saving and investing in globally managed funds, such as funds managed by BlackRock and JP Morgan. It also provides tips and articles, aimed at demystifying the language of investments. Wealth8 enables to achieve scale in bringing wealth management services to a wider, previously excluded audience and hopefully to impact their lives positively. 

At Wealth 8, we passionately believe that a woman’s ability to earn, save and invest plays a critical role in the well-being of her children. This in turn leads to stronger communities and the economic prosperity of Africa. 

Financial education and coaching are key, and need to be taught at an early age to teenage girls, and young women professionals. The Wealth8 platform has financial literacy tools to access world-class information, and is a safe space for people to ask about investing. These tools cover short and long-term financial planning, how to purchase property, and how to build wealth with their business equity. We are not just an app for investing, we also provide information and resources that will increase their understanding of wealth.

Africa has several high net-worth individuals such as Nigeria’s Aliko Dangote (Estimated net worth of USD 11.9 billion), Egyptian Nassef Sawiris (Estimated net worth of USD 9.2 billion) and South Africa’s Patrice Motsepe, whose net worth is estimated at USD 3.2 billion. What are some of the statistics that demonstrate the financial potential in Africa?

The 2021 Africa Wealth Report notes that the total private wealth held on the continent amounts to approximately two Trillion USD, and there are about 125 millionaires living in Africa, each with net assets amounting to one million USD or more. In addition, there are about 200 multi-millionaires living in Africa, each with net assets of USD 10 million or more, roughly 275 centimillionaires, each with net assets of USD 100 million or more and 22 billionaires living in Africa. 

Ghana CEO Summit to Launch Women Leadership Network

Africa is known for its “brain drain” challenges, where knowledgeable and experienced Africans leave the continent for greener pastures. Why did you leave Lagos for London?

I practised as a lawyer for eight years in some of the most respected law firms in Lagos, before relocating to London in 1995. At the time, my soon-to-be husband — who is Cameroonian, had relocated from Paris to London, and we wanted to start a family after getting married. But I knew the demands of a lawyer based in one of the world’s most bustling cities was going to be difficult to juggle with a young family. This was when I established my own law firm, Addie & Co, partnering up with a fellow Nigerian lawyer. It allowed me to be more flexible, growing the business and being present in my family’s life.

Strong and effective financial education matters

In 2014, you established a wealth management practice called W8 Advisory, which was soon followed by an expansion of the business to include asset management services, branded as W8 Wealth. In a city overflowing with high net-worth individuals and wealth management firms, what was distinctively different about what you had to offer?

It has always been clear to me that I needed to offer my services to high net-worth African clients, and the greater African diaspora. These are people who have amassed wealth across different geographies and were looking to preserve it, making it work in their favour. I realised that there were not nearly enough wealth managers who were servicing the specialised needs of this niche market. By utilising the two W8 entities, we have been able to offer the full suite of wealth and asset management for our clients, with their family members and assets being spread across different countries.

Wealth, or “old money” as some refer to it, is seen as exactly that, assets and wealth that old, predominantly male individuals amass throughout their lives. But, in an ever-evolving world, there is an increasing number of outliers who are building empires at a rapid rate, and are not grey-haired men. How are you catering to this burgeoning market?

The population of the African continent and the diaspora is largely a youthful one, who are increasingly dabbling in entrepreneurship, starting businesses and creating wealth at a rapid rate. However, it’s one thing to make money and another thing to preserve it, and sustain its growth, all while ensuring its positive impact on you, your family and community.

I wanted to support the younger generation in their journey of wealth creation and preservation, by making the language and tools of investment accessible and affordable. Women – particularly those of African descent – are also another underserved demographic who are not encouraged or empowered to take control of their finances from a young age. Most financial products are created and tailored by men to meet male expectations and needs. I believe women need financial education tailored to recognise their own life journey to reach financial independence. Wealth8 is the answer to this. 

What are the top five most effective ways women can begin to secure their finances and start creating wealth?

1) Track your finances by creating a budget, so that you know how much you are spending. Calculate your monthly income so that you spend less than that. If you have a surplus, you should save it and invest it.

2) The 50-30 rule: try to spend 50 percent of your income on bills such as groceries, housing, transport, then 30 percent should be spent on your wants such as travel, eating out and entertainment. With the remaining 20 percent of your income, it should be saved and invested.

3) Manage your debt. Pay off debt that has the highest interest rate as quickly as you can. These are usually credit card loans, so pay them off as quickly as you can. 

4) Invest. It is important not only to save but to invest in different facilities. A little bit of money invested over a long period takes advantage of compound interest. No amount is too little or too much. 

5) Be tactical. Always have enough to live on and to pay your bills, and try as much as you can to invest on a monthly basis. If in a month your needs increase, decrease your wants.  

UK And First Bank Nigeria Join Forces to Support Women Entrepreneurs

What are your top five investment rules to live by?

1) Have a well-diversified investment portfolio. I cannot overstate this, making the adage “do not put all your eggs in one basket” ring true. Diversification is a strategy that blends different assets into a single portfolio. By investing in different types of products, if one of them loses value, the others tend to increase. At the very least, the net effect is that you end up not losing, or the best-case scenario, you gain. For example, a mix of equities (shares in companies), bonds (loans to governments and companies), property and cash is ideal.

2) Review your goals before choosing an investment and establish what you are trying to achieve. For example, it could be a short-term goal like buying a car or a long-term idea like saving for retirement. This will determine the types of assets that are suitable for your goals.

3) Keep building your portfolio. Add to your investments on a regular basis. There is a term called Dollar-Cost Averaging (DCA), where you try and divide the amount of money you invest. Make your investments in small, regular amounts over a length of time, as this reduces some market volatility on your overall investment.

4) Watch the fees. Make sure you understand the fees charged by your broker or fund manager. Some charge monthly fees, while some have transactional fees, but either way, they all add up. If you can negotiate your fees, do so. Wealth8 has a flat fee of 1 percent of the assets per annum and there is no entry and exit fee. 

5) Sit tight and do not panic. If your investment period is five years, you might experience something in the market that causes your investments to decrease in value. Do not be tempted to sell all your investments at the first sign of trouble. If you sell when the market is low, you lose. Plus, you miss out on the eventual upturn of the market. However, the caveat is that you may not always get back what you invest. You need to do your homework, watch the markets and seek expert financial advice where necessary.