Andile Ngcaba, chair, Convergence Partners.

Andile Ngcaba-led Convergence Partners has acquired a $10 million stake in fintech group 42Markets.

Convergence Partners announced the acquisition yesterday, saying that as a new investor it will enable the 42Markets Group to accelerate growth through the buildout of its product set and further geographic expansion.

The investment is through the Convergence Partners’ Digital Infrastructure Fund (CPDIF), a $296m private equity fund focused on digital infrastructure opportunities across sub-Saharan Africa.

42Markets Group is focused on the digital transformation and improved efficiency of capital markets in Africa.

“The business is well placed to enable second-tier capital markets to improve their capabilities to reduce friction and costs, and improve transparency and real-time risk management, across a broad range of financial products, ultimately extending the reach of banking and financial services to a broader cross section of the population,” says Convergence Partners in a statement.

It adds: “The transaction falls squarely into one of the emerging fintech themes that form part of the focus of CPDIF – investing in businesses with high-impact potential that are democratising financial markets.”

Andries Brink, Group CEO, 42Markets Group comments: “Convergence Partners has been instrumental in Africa digitally leapfrogging the world through key investments in fibre and data infrastructure.

“Together, we will now do the same for financial markets, in connecting central banks and other big asset generators to corporate and retail investors, safely and accurately, across the full spectrum of capital markets solutions.

“In a very real sense, 42Markets companies are the ‘over-the-top’ capital enablers, on the infrastructure that Convergence Partners has established. We are excited about working with them to bring real and sustainable change to markets.”

Ngcaba, chair, Convergence Partners, says the investment in 42Markets Group, reflects his company’s dedication to fostering digital infrastructure expansion throughout Africa.

He explains: “42Markets’ expertise in decentralised finance, regtech and fintech, particularly, in expanding global financial and capital markets to underserved regions, aligns perfectly with our vision of utilising technology to bridge the digital divide and improve access for those in need.

“As blockchain adoption on the continent continues to grow, we look forward to embarking on this journey with 42Markets to democratise financial markets and enhance accessibility.”