GoTyme Bank Set to Reward Employees with Equity Shares

South African digital bank GoTyme has announced it will offer stock options to over 2,000 employees across all levels. This move comes as the company prepares for a potential initial public offering (IPO) and targets a multi-billion dollar valuation.

The Employee Stock Ownership Plans (ESOPs) will allow staff to directly benefit from any future growth GoTyme achieves. CEO Cheslyn Jacobs indicated that the company is aiming to list on the Johannesburg Stock Exchange (JSE) within three to four years, joining other tech-focused firms like Optasia and Lesaka Technologies.

ESOPs: A Growing Trend in African Tech

This announcement follows a broader trend of startups using stock options to attract talent and improve performance. In Nigeria, former employees at Moniepoint and Arnergy have become millionaires through similar programs after successful funding rounds or company sales.

While ESOPs can create wealth for employees, they’ve also faced challenges in Africa—particularly around payment fulfillment after resignations, as seen in a 2022 controversy involving Flutterwave. GoTyme’s commitment to transparent and timely distribution will be crucial as it implements this program.