Across Africa, fintech is no longer just about mobile money and payments. A new generation of
platforms is emerging that speaks the language of capital markets, wealth management, and
institutional-grade investing.
AlgoHive’s Entry into South Africa’s Investment Landscape
In South Africa, a new fintech platform called AlgoHive has launched with a clear proposition:
retail investors can access fund-grade investment strategies without paying traditional
management fees. The firm, licensed by the Financial Sector Conduct Authority under Category
I and Category II, offers a “super wealth” app that blends curated portfolios, personal finance
tools, and investment-backed lending in one digital interface.
A Closer Look at the Platform’s Structure
At first glance, this might look like another iteration of the robo-adviser trend. Viewed more
closely, AlgoHive’s model reflects a broader shift in how financial services are being delivered
in the digital age. Users can subscribe to strategies that are run with fund-like rigour, compare
spending patterns to anonymised peers, and, subject to prudential limits, borrow against eligible
portfolios. The aim is to expand access while reducing the frictions and minimums that often
exclude everyday investors.
Features and Fee Model
The platform offers curated investment strategies across multiple asset classes, including digital
assets, spend tracking and insights, investment-backed credit, and access to independent financial
advisers. It does this without charging traditional assets under management fees on the strategies
that clients choose to subscribe to.
“We run each strategy with the same discipline you would expect from a fund, but we make it
simpler and more affordable to access,” says Lonwabo Damane, CEO and co-founder of
AlgoHive. “By removing AUM fees and bringing strategy management, insights, and personal
finance tools into a single experience, we are making investing smarter, fairer, and easier to use.
Clients can choose open strategies across asset classes, and in time they will also be able to
invest in funds listed on the platform, compare options side by side, and decide what suits them
best.”
Questions remain, and they are important ones. How sustainable is this model over the cycle.
What happens when strategy performance lags or credit risk rises. How will regulators respond
to the continued blurring of investing, borrowing, and advice. AlgoHive’s team argues that
sustainability rests on disciplined mandates, transparent real-time factsheets, and conservative
loan-to-value limits for investment-backed credit, all within existing FSCA and NCR
frameworks.
”AlgoHive is a licensed South African platform that hosts institutional-grade investment strategies, not copy trades for retail investors. We provide real-time factsheets, strict risk limits, and low, transparent fees. When performance dips, clients see it immediately and can switch strategies or choose listed funds on the same platform.” Said Lonwabo. ”For investment-backed credit, we’ll mirror local best practice – conservative LTVs, liquid collateral, and NCR-compliant agreements – similar to securities-based lending already available in SA. We believe regulators will support greater access with stronger guardrails: licensed activity under FAIS, proper disclosures, and robust market-conduct controls.” He added.
Why Fintech Adoption in Capital Markets Matters
Widespread adoption of fintech in capital markets is increasingly necessary. It has the potential
to deepen financial inclusion, improve market liquidity, and foster a culture of informed
investing across the continent. For this promise to be realised, regulators, institutions, and
investors will need to embrace the shift not as a threat to tradition, but as a catalyst for
transformation.
By Natasha Wairimu
