In Johannesburg, South Africa, an African fintech startup, Squirrel Away, has launched the country’s first investment gifting app, allowing users to contribute as little as ZAR10 ($0.55) toward a child’s financial future through exchange-traded funds (ETFs).
Founded by Sibongile Maputla and rolled out in May, the platform seeks to transform traditional gift-giving into a tool for building generational wealth, offering parents, relatives, and friends a simple, low-cost way to secure long-term financial growth for children.
“We’re not here to replace formal financial institutions; we want to make long-term investing feel as normal as buying a toy,” Maputla expressed.
“I want children in South Africa to grow up knowing they have a stake in the future, that wealth is for everybody.”
Founding and Funding of Squirrel Away
Squirrel Away was founded by Sibongile Maputla, a South African entrepreneur with a vision to make investing accessible to all households.
While still self-funded at its launch, the startup is currently seeking seed-stage investment to scale its technology and expand outreach across South Africa.
Industry analysts suggest that early traction in the fintech gifting space could attract both venture capital and social impact investors.
“We are building a platform that doesn’t just serve families, it creates a new culture of financial responsibility,” Maputla said.
Tackling Financial Exclusion
South Africa struggles with high levels of financial exclusion, with the World Bank estimating that over 20 percent of South Africans remain unbanked.
By lowering the entry point to ZAR10, Squirrel Away aims to break down barriers to investing for lower- and middle-income families.
According to Maputla, the initiative “is about making wealth accessible, not just a privilege for the few.”
The Power of Compound Growth
Financial experts note that small, consistent investments made during childhood can grow substantially over time.
A child receiving just ZAR100 ($5.50) per month invested in ETFs could have more than ZAR40,000 ($2,200) by age 18, assuming modest annual returns of 8 percent.
“Compound interest should not be seen as a complex formula,” Maputla said. “It’s a gift that keeps multiplying.”
Community-Based Investing
The app also promotes a communal approach, allowing relatives and friends to collectively invest in a child’s future.
Early pilot feedback shows that nearly 60 percent of users are extended family members, underscoring the cultural role of shared responsibility in South African households.
“This is about turning love into legacy,” Maputla explained.
Will This Benefit Everyday South Africans?
The launch of Squirrel Away matters would go a long way to benefit South Africans. it could reshape how South African families approach wealth-building by turning everyday gift-giving into lasting financial assets.
With over 20 percent of South Africans still unbanked, the app lowers barriers by allowing contributions from as little as ZAR10 ($0.55), making investing accessible to low- and middle-income households.
By harnessing the power of compound growth, even small monthly contributions can grow into significant sums over time, offering children a financial head start in adulthood.
Founder Sibongile Maputla explains,
“We want to make long-term investing feel as normal as buying a toy,” highlighting the platform’s goal of normalizing wealth creation and showing that “wealth is for everybody.”
Talking Points
Squirrel Away’s launch marks a pivotal moment for African fintech, offering families a way to turn small, everyday gifts into long-term investments for children’s futures.
Similar in philosophy to Singapore’s Teleskop, which helped individuals gradually invest for retirement.
While Teleskop focused on old-age security, Squirrel Away leverages South Africa’s strong communal traditions, enabling relatives and friends to collectively invest through accessible contributions starting at ZAR10 ($0.55).
This democratizes wealth-building in a country where more than 20 percent of citizens remain unbanked, but its success will depend heavily on user adoption and financial education to build trust in digital investing.
As founder Sibongile Maputla puts it, “We want to make long-term investing feel as normal as buying a toy,” highlighting the app’s potential to normalize financial planning and create generational wealth in a way that could serve as a model for other emerging markets.
However, this innovative tech-backed financial solution is another proof that the indigenous problems of Africa can be best solved by Africans talents.
