Weekly Investor Update (April-WeekOne-2025)

14 min Read April 4, 2025 at 5:00 PM UTC

Monday

Ecobank Posts Record Profit in 2024 Despite Nigeria Setback

Ecobank Group (BRVM: ETIT) reported a pre-tax profit of $658 million in FY2024, up 13% year-on-year, driven by growth in fee-based services and tighter cost control. Net profit attributable to ETI shareholders rose 16% to $333 million, while earnings per share reached 1.36 US cents. Return on tangible equity (ROTE) jumped to 32.7%, one of the highest among African banks.Revenue totaled $2.1 billion, with net interest income making up 56% and non-interest income 44%. The Corporate and Investment Banking (CIB) segment accounted for nearly half of group revenue and $498 million in pre-tax profit.Thegroupincreased deposits by 17% and held cost-to-income ratio at 53%. Gross loans declined 5%, while Stage 1 loans fell 9%, reflecting a cautious lending strategy. However, the cost of risk rose to 1.79%, and foreign currency translation caused a $439 million loss, offsetting much of the net profit. No dividend was announced.

Ecobank’s performance highlights diverging regional outcomes. The Nigerian subsidiary contributed just $3 million in net profit, down 87%, due to exchange rate volatility, high reserve requirements, and regulatory burdens. Cost-to-income rose above 79%, with a return on equity of only 1.1%. In contrast, Anglophone West Africa (AWA) and Central, Eastern, and Southern Africa (CESA) outperformed. AWA posted a 59% jump in net profit with 37.4% ROE, while CESA contributed strongly to consolidated performance, benefiting from improved loan portfolio quality. WAEMU remains the group’s profitability anchor, delivering $306 million in net profit on $705 million of net banking income. From a capital perspective, the group maintained solid ratios: CET1 at 11.4%, CAR at 15.8%, and a loan-to-deposit ratio of 51.4%. Ecobank’s shift toward digital services and fee-generating products is gaining traction, with active customers up 9% and banking card revenues rising 14%. Looking ahead, the group plans selective repositioning to reduce exposure to currency and sovereign risks.

Ivorian Lender NSIA Banque CI Reports $62.6M Annual Profit

NSIA Banque Côte d’Ivoire (BRVM: NSBC) reported a 9% increase in net profit for 2024, reaching 38.1 billion CFA francs ($62.6 million), up from 34.8 billion CFA francs in 2023. The bank posted 7.5% growth in net banking income to 97.8 billion CFA francs, supported by a 27% increase in commissions, which rose to 34.3 billion CFA francs. Interest income declined slightly to 63.5 billion CFA francs.Operating expenses increased 9% to 49.9 billion CFA francs, driven by higher personnel and overhead costs. The operating ratio stood at 59.7%, down from 62.3% in 2023. The cost of risk improved significantly, dropping from -3.4 billion to 0.6 billion CFA francs. This reflected lower provisions and better portfolio quality.Non-performing loans fell 47%, and total assets rose 23% to 2,514 billion CFA francs. Customer deposits increased 20% to 1,701 billion CFA francs. The stock rose 58% over the past year. The bank has not yet announced a 2024 dividend.

NSIA Banque Côte d’Ivoire’s 2024 results reflect stable revenue growth and stronger risk management. A sharp decline in the cost of risk—down 116% year-on-year—helped improve profitability, while the share of non-performing loans dropped 47%, strengthening the balance sheet. The bank also grew its customer deposit base by 20%, outpacing local competitors. Total assets rose 23%, supported by a 17% increase in outstanding loans to 1,536 billion CFA francs. The cost structure increased due to investments in digital tools and operations, yet the bank maintained a lower operating ratio. On the market, shares rose more than 58% in one year, reaching 8,500 CFA francs. With a market cap near 210 billion CFA francs and a price-to-earnings ratio of 5.5, the stock remains below average valuations in the regional banking sector. The bank continues to implement its “Altitude 22-26” strategy focused on financial inclusion, digital transformation, and ESG, with stable credit ratings reaffirmed by Bloomfield.

BRVM Stock Market Gains 1.5% as Orange CI Leads Weekly Rally

The BRVM Composite Index closed the week up 1.52% to 287.43 points, while the BRVM 30 index rose 1.6% to 144.53 points. The market ended the week with 15 stocks gaining, 22 declining, and 10 remaining unchanged.OrangeCôte d’Ivoire was the top gainer, rising 11.54% to close at 14,500 FCFA, with a trading volume of 18,434 shares. Other notable risers includedCFAO Motors(+7.89%),Safca(+6.76%),TotalSenegal (+4.72%), and BOA Niger (+4.49%).On the downside,UnileverCôte d’Ivoire saw the steepest drop, falling 12.91% to 6,575 FCFA on thin volume of just 25 shares.Setao(-7.2%), CIE (-7.14%),Coris Bank(-6.48%), andNSIA Bank(-5.51%) also posted significant losses. Despite mixed performances among individual stocks, investor sentiment remained broadly positive as the benchmark indices recorded a second consecutive week of gains.

The BRVM’s positive momentum this week highlights renewed investor interest, particularly in telecom and industrial names. Orange CI’s 11.54% surge reflects confidence in its fundamentals following strong earnings and consistent dividend policy. Stocks like CFAO Motors and SAFCA also benefited from sectoral rotation into consumer and manufacturing plays. On the other hand, Unilever CI’s 12.91% drop, despite low volume, signals persistent pressure in the consumer staples segment amid weaker margins and supply chain costs. Financial stocks had a mixed showing. NSIA Bank and Coris Bank declined notably, following recent earnings announcements and possible profit-taking. Broader market resilience—evident from the 1.52% gain on the composite index—suggests institutional investors continue to reweight portfolios ahead of Q2. While local macro risks and regional uncertainties persist, select names with strong fundamentals and dividend histories are driving the rally. Market watchers will be focused on volume trends and Q1 financial updates in the coming weeks.

West African Bank BICICI Reports 57% Profit Jump in 2024

Ivorian lender BICI (BRVM: BICC) posted a net profit of 26.2 billion FCFA ($43.3 million) for 2024, up 57% from 16.7 billion FCFA ($27.5 million) the previous year. The Ivorian bank’s financial statements show total assets reached 1.02 trillion FCFA ($1.68 billion), a 10.3% increase from 2023.Customer loans grew 15.5% to 564.9 billion FCFA ($932.5 million), while customer deposits rose 5.3% to 819.4 billion FCFA ($1.35 billion). Net banking income climbed 22.6% to 68.1 billion FCFA ($112.4 million), driven by higher interest income and commission revenues. Operating expenses decreased to 34.7 billion FCFA ($57.3 million) from 35.6 billion FCFA ($58.8 million), improving the cost-to-income ratio. The bank strengthened its capital position with subscribed capital increasing to 25 billion FCFA ($41.3 million).Off-balance sheet commitments showed significant changes, with guarantees given increasing to 237.5 billion FCFA ($392.1 million) while guarantees received decreased to 593 billion FCFA ($978.9 million). The bank’s improved performance reflects broader growth in Ivory Coast’s banking sector amid economic expansion.

BICICI (Banque Internationale pour le Commerce et l’Industrie de la Côte d’Ivoire), listed on the regional BRVM stock exchange as BICC, is a subsidiary of France’s BNP Paribas. The bank operates in Ivory Coast, West Africa’s fastest-growing economy with GDP growth averaging 6-7% in recent years before the pandemic. The banking sector in Ivory Coast has been consolidating, with major international groups strengthening their positions through digital transformation and branch network expansion. BICICI’s profit growth outpaced the 20-25% sector average for 2024. The bank’s improved performance aligns with Ivory Coast’s economic recovery, supported by strong agricultural exports, particularly cocoa, and increased public investment. However, the banking sector still faces challenges including low banking penetration rates of about 20% compared to global averages exceeding 50%.

Banking Stocks Dominate BRVM 30 Index After Quarterly Reshuffle

BICICI (BICC) has been removed from the BRVM 30 index following the regional stock exchange’s quarterly review. The Abidjan-based announcement dated April 1, 2025, confirms that BICICI is among four companies exiting the benchmark index alongside CFAO Motors (CFAC), SODE (SDCC), and SOLIBRA (SLBC).Four new entrants replace them: Bank of Africa Niger (BOAN), Benin National Lottery (LNBB), TotalEnergies Marketing Senegal (TTLS), and UNIWAX (UNXC). The revised BRVM 30 index now comprises 30 companies, with significant banking sector representation including seven Bank of Africa subsidiaries across West Africa. The updated composition aims to better reflect market liquidity according to exchange officials.Dr. Edoh Kossi Amenounve, Director General of the Regional Securities Exchange (BRVM), signed the official notice, stating the changes ensure all component stocks meet eligibility criteria.These changes follow BICICI’s recent announcement of a 57% profit increase to 26.2 billion FCFA ($43.3 million) for 2024, despite the bank’s removal from the key regional benchmark.

The BRVM (Bourse Régionale des Valeurs Mobilières) serves eight West African countries sharing the CFA franc currency: Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. It remains one of Africa’s few unified regional exchanges. Index removals typically reflect changes in market capitalization, trading volume, or other technical factors rather than company performance. Despite BICICI’s strong financial results, its trading activity may have fallen below required thresholds. The BRVM 30 adjustments highlight broader trends in West Africa’s financial landscape, with Nigerian banking expansion and increasing diversification beyond traditional sectors. The inclusion of Benin’s lottery company signals growing investor interest in consumer services across the region.

WAEMU Inflation Stays Within Target Range for Fourth Straight Month

WAEMU region inflation remained at 2.1% year-on-year in February 2025, marking the fourth consecutive month within the BCEAO’s 1-3% target range. Core inflation held steady at 1.3%, reflecting stable economic fundamentals across the region. Regional monetary and fiscal policies have kept overall inflation controlled, though officials warn external factors like commodity price volatility could threaten stability.The decline in food prices drove the inflation slowdown, with food’s contribution falling from 2.2 percentage points in January to 1.7 in February. Successful agricultural seasons and government price stabilization policies supported this improvement.Country performances varied significantly. Senegal and Côte d’Ivoire recorded sharp declines to 0.6% and 0.7% respectively. Niger (3.6%), Benin (0.1%) and Togo (2.1%) also saw improvements. However, Mali (8.3%), Guinea-Bissau (5.8%), and Burkina Faso (2.3%) faced increasing inflation, with rates rising 0.7, 0.4, and 0.8 percentage points, respectively. These increases stem from supply shocks, political instability, and transportation cost pressures.

The West African Economic and Monetary Union (WAEMU) comprises eight countries sharing the CFA franc currency, pegged to the euro. The central bank (BCEAO) maintains a unified monetary policy across these diverse economies. The region’s banking sector, including recently-removed BRVM 30 index member BICICI, benefits from this price stability. Lower inflation strengthens real returns on financial assets and improves loan portfolio quality by reducing borrower stress. Recent political transitions in several member countries have tested the monetary union’s resilience. Despite security challenges in the Sahel region affecting Mali, Burkina Faso, and Niger, the currency zone has maintained relative macroeconomic stability compared to neighboring non-WAEMU nations.

Trump’s New Tariffs Target Top African Exporters With Higher Rates

Former U.S. President Donald Trump’s proposed reciprocal tariff policy will impose new import duties on over 180 countries, including dozens in Africa. While most nations face a baseline 10% tariff, countries that impose higher duties on U.S. exports will now be hit with steeper rates.The hardest-hit African nations include Lesotho (50%), Madagascar (47%), Mauritius (40%), Botswana (37%), Angola (32%), Libya (31%), South Africa (30%), Algeria (30%), Tunisia (28%), and Côte d’Ivoire (21%). These countries currently impose tariffs on U.S. goods ranging from 41% to 99%.The policy marks a departure from previous U.S. trade frameworks like the African Growth and Opportunity Act (AGOA), which allowed duty-free access to the U.S. for many African exports. Trump’s administration describes the move as a corrective response to what it sees as unfair foreign tariffs and trade barriers. Critics warn the policy could trigger retaliation and destabilize long-standing trade relationships, especially with African economies heavily reliant on U.S. markets.

The new tariff policy could undermine Africa’s most favorable trade channels with the U.S., particularly for top exporters like South Africa, Mauritius, and Côte d’Ivoire. These countries have leveraged AGOA to access U.S. markets with minimal duties, exporting everything from textiles and apparel to minerals and agricultural products. Trump’s approach introduces uncertainty into these relationships. By imposing tariffs of up to 50% on countries like Lesotho and Madagascar, the U.S. is signaling a shift from preferential trade to transactional arrangements. This may push African economies to strengthen ties with China, the EU, and Gulf states, which have continued expanding economic partnerships on the continent. In the long term, African nations may accelerate intra-African trade under the African Continental Free Trade Area (AfCFTA) to reduce exposure to external policy shocks. Without renewed bilateral agreements or carve-outs, the U.S. risks losing its competitive edge as a trade partner in one of the world’s fastest-growing regions.

Djamo Raises $17M to Expand Digital Banking in Francophone Africa

Ivorian fintech Djamo has raised $17 million in equity funding to scale its digital banking services across Francophone West Africa. The round, led by Janngo Capital, is the largest ever for an Ivorian startup and brings Djamo’s total equity funding to over $31 million.Djamo, which launched in 2020, serves more than one million users in Côte d’Ivoire and Senegal. The company targets underbanked individuals and small businesses with a product offering that sits between mobile money and traditional banking. It includes savings tools, investment products, and salary-linked accounts.Only 5–10% of users currently receive their salaries through Djamo, but the company aims to grow that share to 50%. Revenue has increased 5x since 2022, with more than $4.5 billion in transactions processed since launch. The new capital will support regional expansion and product development. Djamo plans to launch lending and interest-bearing savings as it secures additional licenses.

Djamo’s success highlights the growing fintech opportunity in Francophone West Africa, a region often overlooked by global investors. Unlike Nigeria or Kenya, where fintech activity is concentrated, markets like Côte d’Ivoire and Senegal have lower formal banking penetration but high mobile money usage. Djamo’s model targets users transitioning from mobile money to more advanced financial tools. This includes savings, investment, and salary-linked accounts, features unavailable on most mobile wallets. Over half of Djamo’s users are unbanked, with 90% using the app as their primary financial account. The startup’s hybrid approach—digital-first with offline agents—mirrors the strategy used by mobile money operators and addresses infrastructure gaps. Djamo is also expanding its offering to 10,000 small businesses with tools for digital payments and merchant services. The firm’s focus on financial inclusion, particularly for women, aligns with growing investor interest in mission-driven fintechs. Francophone Africa is emerging as the next key fintech growth region as the sector matures.

African Startups Face Post-Boom Reality as Funding Hits $2B

Funding into African startups fell to around $2 billion in 2024, per multiple reports. While the headline figures suggest a recovery, market activity revealed caution: mega-deals declined, and investors shifted toward startups with strong fundamentals and clear paths to profitability.This shift led to several high-profile failures. Copia, Gro Intelligence, Dash, and 54gene, all of which raised substantial funding, shut down operations. Gro Intelligence, once valued at $850 million, collapsed amid liquidity and governance issues. Meanwhile, some startups adjusted through consolidation. Wasoko and MaxAB, two B2B e-commerce platforms, merged to cut costs and survive. Others like Moniepoint, Moove, and TymeBank stood out, raising new capital and achieving unicorn status.The contrast highlights a maturing ecosystem. Growth-stage startups are no longer immune to market discipline, and capital now flows selectively. Valuations remain high for those delivering on metrics. As 2025 unfolds, strategic clarity and resilience will define the startups that attract investor attention.

The African startup ecosystem is entering a new phase marked by investor discipline and operational rigor. Between 2020 and 2021, global venture capital surged into the continent, but the slowdown since 2022 has forced a reset. Startups that once scaled rapidly on the back of abundant capital now face higher expectations around unit economics, compliance, and cash preservation. This shift has also changed the profile of winners. Digital banks like TymeBank and Moniepoint, which cater to underserved customer segments with scalable models, are gaining ground. Their focus on core financial services, strong growth, and early profitability has drawn investors like Nubank and Google.Moreover, strategic shifts like the Wasoko-MaxAB merger point to increasing regional consolidation, suggesting investors may support fewer but stronger players. For founders, this environment demands clarity: who their customers are, what problem they solve, and how fast they reach sustainability. The next wave of unicorns will reflect these fundamentals, not fundraising alone.

This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Articles do not reflect the views of DABA ADVISORS LLC and do not provide investment advice to Daba’s clients. Daba is not engaged in rendering tax, legal or accounting advice. Please consult a qualified professional for this type of service.