The CEO of twitter and square ,Jack Dorsey’s plan to move to Africa divides Square and Twitter investors
- The CEO of Twitter and Square announced plans to move to Africa for up to six months next year.
- Analysts have doubts about who will run the companies in his absence. While some Square analysts are bullish on the payments opportunity, they want to know who will “mind the store” while Dorsey is abroad.
- Yale’s Jeff Sonnenfeld said a six-month leave would be “reckless” on the CEO’s part and allowing it would be “irresponsible and negligent” on the part of the board.
The CEO of both companies said in a tweet last week that he plans to move to the continent for as long as six months. Payment analysts say the opportunity for Square could be tremendous, but they question who will run daily operations. For Twitter, it comes in an election year in which social media companies will likely face increased scrutiny.
Dorsey has already been in Africa for the past month, reportedly meeting with crypto entrepreneurs in Nigeria. He did not say which country he plans to live in.
Africa is ‘the future of payments’
Some Square analysts see Africa as an untapped and under-served market. African countries are still heavily cash-based, meaning digital payments and the popular Cash App could make inroads. Square could also bring merchant acceptance through the point of sale systems. Lisa Ellis, partner and senior equity analyst at MoffettNathanson, said an Africa expansion “fits tightly with Square’s mission to empower the individual entrepreneur and drive financial inclusion.”