Fusion Bridge Capital FAQs

GUY R. ESSOME

With over 28 years of experience in investment banking, Guy is a seasoned professional with a track record of financing and advising emerging markets corporates in a diverse array of sectors.

As a dual British and US citizen with roots in Cameroon and formative years in France, Guy embodies the global perspective of the diaspora community. He is the driving force behind Fusion Bridge Capital, where his unique academic background in computer science, engineering and finance, empowers him to tackle complex problems with innovative financial solutions.

Guy's career as an investment banker is marked by a series of pioneering achievements, leading the groundbreaking issuance of the first Eurobond for a Sub-Saharan African corporation outside of South Africa, showcasing his ability to navigate uncharted financial territories. His passion for innovation is further exemplified by the establishment of Sphynx Capital Markets PCC, a pioneering special-purpose vehicle that mobilised nearly $1 billion in institutional capital for African markets.

His commitment to development in Africa is not just professional; it's personal. Guy's deep understanding of the diaspora's potential to influence Africa's economic potential has led him to focus on mobilising diaspora savings and investments through Fusion Bridge Capital. Guy's aspiration to build a large and reliable distribution platform for African fixed-income securities is rooted in both a desire to contribute to the sustainable growth of African economies as well as the inspiring and energising challenge of unlocking the powerful resources of diaspora communities.

DAVID KING

The Problem: Sub-Saharan Africa relies heavily on external funding like Official Development Assistance (ODA) and Foreign Direct Investment (FDI), which are often insufficient for key development initiatives. Private financial flows are limited, short-term, volatile, and often impacted by global macroeconomic events, regardless of their relevance to the continent. In contrast, remittance flows are substantial, resilient, and often countercyclical in nature. They represent a significant but underutilised financial resource, that could be contributing to the continent's development.

The Solution: Fusion Bridge Capital was established to bridge this gap. Leveraging our expertise in serving institutional investors, we've created a platform to mobilize diaspora savings for investment in Africa. Our platform offers a range of diaspora-tailored investment products, focusing on trust, convenience, quality, and risk mitigation. We aim to create an investment ecosystem that not only fosters African diaspora savings but also paves the way for innovative financing solutions like diaspora bonds, to contribute to sustainable economic growth in Africa.

Expanded Ambition: As our platform evolved, we recognised the broader appeal of our products, such as remittance bonds, across various diaspora communities. This realization has broadened our ambitions, leading to a more extensive rollout plan that encompasses a wider range of diaspora groups. For details on our expansion, please refer to the FAQ “When will Fusion Bridge Capital’s services be available to my diaspora community”.

Fusion Bridge Capital is not yet independently regulated. We are in the initial phase of a strategic partnership with StepLadder Solutions Ltd, which operates under FCA oversight through an appointed representative (AR) relationship. Under this partnership, we operate within StepLadder’s ambassadorial framework. Our transition to becoming an independent, fully FCA-compliant entity through an AR relationship of our own is planned as part of the second stage of our collaboration with StepLadder.

StepLadder is an appointed representative of More Lending Solutions Limited which is authorised and regulated by the Financial Conduct Authority (reference number: 702503). You can find them on the FCA register here - Their firm reference number is 783003.

Please refer to the FAQ “What is your relationship with Stepladder” for more details.

We have forged a partnership with StepLadder Solutions Ltd to integrate their white-label digital ROSCA (Rotating Savings and Credit Association) into our platform. StepLadder, an FCA-compliant, award-winning P2P Lending platform based in London, was established in 2017. They specialise in developing and managing digital ROSCAs primarily helping UK retail customers to efficiently save for home deposits. To date, Stepladder has helped people raise over £1,500,000 towards their goals. The company also provides a versatile white-label product suitable for a range of use cases. Our collaboration with StepLadder is structured in two stages.

Stage 1 - Operational Ambassadorship with StepLadder: In this fully operational phase, customer engagement begins on our website and transitions to a co-branded landing page managed by StepLadder. As ambassadors, we introduce members and host Saving Clubs (circles) on StepLadder's platform under their mentorship and regulatory oversight. The Saving Clubs operate under commercial terms negotiated with Fusion Bridge, and our policies align with StepLadder's for a seamless transition to the next stage. All ongoing Saving Clubs at the time of transition will remain uninterrupted.

Stage 2 - Transition to Independent Operation: By 1 June 2024, we expect to emerge as an independent, FCA-Compliant Rosca operator. This transition will include a seamless transfer of customer data to our servers. Future customers will then register and onboard through our website, marking our complete move to autonomous operation.

This strategic, phased approach, underpinned by StepLadder's regulatory framework, affords us the time needed to secure all necessary regulatory approvals for independent operation. It guarantees continuity and minimal disruption for our customers, smoothly paving the way to our future as a fully FCA Compliant operator.

Our growth strategy integrates both market expansion and product development as guided by our initial focus and evolving vision. Our market development approach is reflective of our market knowledge, diaspora insights and regulatory constraints. At present, our focus is primarily on UK-based diaspora communities due to regulatory constraints.

Phase 1: UK-based African diaspora communities

Our initial market focus is on the African diaspora, residing in the UK. Specifically, We are targeting diaspora communities from Nigeria, Ghana, Kenya, and Francophone Africa. This strategy leverages our expertise in these region’s bond markets as well as our extensive network and origination capability within these markets.

By starting with regions where we have the most expertise and insight, we can ensure a strong foundation for our operations.

Phase 2: Expanding within the UK to other African and global diaspora communities

Following our initial focus, we plan to extend our reach to additional diaspora communities in the UK, including those from South Africa, Zimbabwe, Somalia, Uganda, Egypt, Tanzania, Mauritius, Zambia together with the Philippines, the Caribbeans, Brazil and Colombia. This expansion is informed by the size of these communities and the size of their annual remittances.

Phase 3: Broader UK diaspora markets

The next stage involves exploring opportunities with diaspora communities from India, Pakistan and Turkey. This expansion will be informed by ongoing research and an evolving understanding of the unique investment behaviours and needs of these diverse diaspora groups.

Phase 4: EU-based diaspora communities

Our long-term vision involves expanding our services to diaspora communities from the countries named above but who are EU residents/citizens. This phase is particularly significant for connecting with the large Francophone African diaspora in Europe. Our expansion into the EU is contingent on securing the appropriate regulatory permissions.

Product development and regulatory milestones

We currently operate a digital platform that serves as a convenient entry point for our clients and provides them with the practical means to accumulate the capital necessary to support their investment goals. Going forward, our objectives include the acquisition of our investment platform and securing the requisite regulatory permissions for independent operation. We anticipate achieving these pivotal milestones by June 1, 2024. Reaching this point will mark our final transition, positioning us as a fully operational entity with the ability to offer a comprehensive suite of services, in line with our mission to mobilise diaspora investments effectively.