Weekly Investor Update (April-WeekTwo-2025)

12 min Read April 11, 2025 at 5:00 PM UTC

Monday

Trump Tariff Hike Threatens $8B in African Duty-Free Exports to U.S.

Africa faces new trade uncertainty following U.S. President Donald Trump’s decision to impose sweeping tariff increases on imports, affecting countries previously covered under the African Growth and Opportunity Act (AGOA). The move could undermine duty-free access for 32 sub-Saharan African countries and hit key exporters like South Africa, Nigeria, and Madagascar.AGOA enabled African nations to export $8 billion in goods to the U.S. in 2024. But under the new tariffs, African exports will now face a baseline 10% duty, with higher rates for some countries—up to 50% for Lesotho and 47% for Madagascar. The hardest-hit sectors include apparel, agriculture, and automotive manufacturing.Exemptions apply to certain raw materials, including oil, gold, and minerals not available in the U.S., shielding some major exporters such as Nigeria and Angola. However, countries reliant on manufactured or agricultural exports, such as South Africa and Ivory Coast, face significant exposure.

The unilateral U.S. tariff hike places African trade at a crossroads. While some raw materials like oil, gold, and copper remain exempt, value-added exports—such as South African cars, Ivorian cocoa, and Madagascan textiles—face major disruption. AGOA, a cornerstone of U.S.–Africa trade since 2000, now risks becoming irrelevant if blanket tariffs are applied. For countries like Lesotho and Madagascar, where apparel exports to the U.S. drive jobs and GDP, the consequences may be severe. Trade-dependent sectors employing tens of thousands are now vulnerable. The move could reverse progress in industrialization and threaten foreign investment in export-oriented industries. With U.S. market access no longer guaranteed, African economies may accelerate diversification efforts and seek alternative trade partners in Asia, the EU, and within the African Continental Free Trade Area (AfCFTA). In the short term, however, the continent’s most vulnerable economies may need targeted support to cushion the blow—and policymakers may press Washington to revisit the decision or expand exemptions.

Peach Payments to Acquire Senegal’s PayDunya in West Africa Push

South African fintech company Peach Payments has agreed to acquire Senegal-based PayDunya, marking its entry into Francophone Africa. The acquisition extends Peach Payments’ footprint to 12 African countries, following earlier expansions into Kenya, Mauritius, and Eswatini.Founded in 2012 in Cape Town, Peach Payments provides payment solutions that help businesses accept, manage, and disburse funds via web and mobile. The company raised $31 million in 2023 and has since pursued growth through acquisitions.PayDunya, founded in 2015, operates across six Francophone West African countries. It offers merchants a single API to send and receive digital payments. The acquisition gives Peach Payments access to the West African Economic and Monetary Union (UEMOA) and Central African Economic and Monetary Community (CEMAC) regions. The transaction is subject to regulatory approvals and is expected to close in the coming months.

The acquisition of PayDunya highlights a growing trend among African fintechs to scale through strategic mergers and acquisitions, particularly to address fragmented payment infrastructures across regions. Francophone Africa, often less saturated than Anglophone markets, presents new growth opportunities. UEMOA and CEMAC regions share a common currency (CFA franc), easing cross-border operations and offering a unified customer base of over 450 million. By acquiring an established player like PayDunya, Peach Payments can bypass regulatory barriers and tap into existing local integrations with telecoms, banks, and mobile wallets. The move also positions the company to serve cross-border e-commerce and global merchants looking for access to Francophone markets. As African digital economies grow, regional consolidation may accelerate, enabling fintechs to offer more comprehensive services and improve interoperability. For Peach Payments, this deal expands its market reach and operational capabilities, reinforcing a broader trend of regional fintechs evolving into continent-wide platforms.

Orange Rebound Continues as BRVM Ends Week in Green

The BRVM closed the trading week positively with the Composite index gaining 0.45% to 288.73 points. The BRVM 30 rose 0.65% to 145.47 points.Market activity showed 7 stocks up, 32 down, and 8 unchanged.Orangetopped gainers, rising 4.48% to 15,150 FCFA ($25.32). Other notable increases includedBOA Senegal(+3.92%), SOGB (+3.64%), andTractafric Motors(+2.46%).Sicableled declines, dropping 7.09% to 1,245 FCFA ($2.08), followed byCfao Motors(-6.5%) andEcobank Group(-6.25%).The market saw mixed performance across sectors, with telecommunications showing strength while banking stocks presented a more varied picture. Ecobank significant drop came despite high trading volume of 5,301,841 shares.

The BRVM (Bourse Régionale des Valeurs Mobilières) serves eight West African countries in the CFA franc zone: Benin, Burkina Faso, Guinea-Bissau, Côte d’Ivoire, Mali, Niger, Senegal, and Togo. The exchange has shown resilience despite regional economic challenges including inflation pressures and currency fluctuations. Orange CI’s strong performance reflects the telecommunications sector’s continued growth in West Africa, where mobile penetration continues to rise. The banking sector’s mixed results highlight ongoing challenges in regional financial markets, with ECOBANK’s decline potentially signaling investor concerns about its recent expansion strategy across the region.

BOA Côte d’Ivoire Posts 22.9% Profit Jump on Stronger Interest Income

Bank of Africa Côte d’Ivoire (BRVM: BOAC) reported net profit of 32 billion CFA francs ($53.5 million) for 2024, up 22.9% year-on-year, driven by stronger interest income and improved expense management. Net banking income rose 20% to 72.7 billion CFA francs ($121.5 million), with a notable turnaround in securities transactions. The bank’s securities portfolio generated a 6 billion CFA franc ($10 million) gain in 2024, reversing a 4.3 billion CFA franc loss in 2023.Despite an 8.5% increase in operating expenses, BOA CI’s gross operating income jumped 28% to 46 billion CFA francs ($76.9 million). Risk provisions increased 41% to 6.8 billion CFA francs ($11.4 million) as the bank reduced customer credit by 4.7%.The balance sheet grew 14.6% to 1,075 billion CFA francs ($1.8 billion), with customer deposits up 20% to 856 billion CFA francs ($1.43 billion). The bank doubled its share capital to 40 billion CFA francs ($66.8 million) to meet stricter regional regulatory requirements. BOA CI shares have risen 27% over six months to 6,090 CFA francs ($10.18). The April 16 shareholders’ meeting will decide on dividend distribution.

BOA CI has consistently increased dividends, paying 187 FCFA per share for 2021, 270 FCFA for 2022, and 342 FCFA for 2023. Earnings per share rose from 670 FCFA to approximately 801 FCFA in 2024, despite the share capital doubling. The Ivorian subsidiary of Morocco’s Bank of Africa Group has maintained strong dividend payouts while strengthening its capital. Analysts expect the upcoming shareholder meeting to approve another dividend increase given the bank’s improved financial performance and historical distribution pattern.

Movis to Delist from BRVM After Years of Losses

Movis CI shareholders have approved the logistics company’s voluntary delisting from the Regional Stock Exchange (BRVM). The exit will proceed via a public buyout offer running from April 21 to May 21, 2025. Movis International, the majority shareholder, will purchase the company’s 111 shares of free float at 40,000 CFA francs ($66.85) per share. The company will delist regardless of the buyout outcome.According to an April 7 information note, Movis CI cited accumulated financial difficulties as the primary reason for its market exit. The company faces sector deterioration affecting productivity, debt collection issues from defaulting customers, and rising operating expenses without corresponding revenue growth.These challenges led to cumulative losses exceeding 12 billion CFA francs ($20.1 million) over three fiscal years. In 2023 alone, Movis CI reported a 3.51 billion CFA franc ($5.9 million) net loss. The company had previously signaled potential delisting in May 2024.

The delisting will leave Africa Global Logistics as the sole company in the BRVM Transport sector index. Movis CI, formerly Société ivoirienne d’opérations maritimes (SIVOM), specializes in transport and logistics services. Founded in 1973, it provides sea, air, and land transport, project logistics, hazardous materials management, and terminal operations for imports and exports. The company operates as a subsidiary of Movis International group, which maintains presence in multiple African markets including Cameroon and Ghana. This withdrawal reflects ongoing challenges in the regional logistics sector amid economic headwinds.

Senegal’s Debt Surges to 105% of GDP as IMF Backs Audit Findings

Senegal’s public debt rose to 105.7% of GDP by the end of 2024, according to the IMF, which has endorsed findings by the country’s Court of Auditors highlighting significant fiscal mismanagement under former President Macky Sall. The IMF mission to Dakar, conducted in March, validated the Court’s report, further aligning with President Bassirou Diomaye Faye’s administration.The audit revealed alleged data manipulation and corruption from 2019 to 2023, with debt projected to reach 114% of GDP by year-end. Prime Minister Ousmane Sonko and Economy Minister Abdourahmane Sarr have publicly accused the previous administration of financial misconduct. Moody’s has downgraded Senegal’s sovereign rating twice since October 2024, and the country’s Eurobonds have dropped 35% on the London market.Senegal now faces constrained access to international capital markets. A $300 million emergency raise in October came at a 6.33% rate over three years. An IMF-supported program is under discussion but may not materialize before mid-2025.

Senegal’s economic outlook is under pressure as the fallout from post-audit revelations deepens. The Court of Auditors’ report, supported by the IMF, outlines a debt burden and budget deficit that have spooked international markets and prompted credit downgrades. Though the IMF insists it relies on government-supplied data, its prior disbursements—over $770 million in 2023—have drawn criticism. Accusations of misreporting and calls for legal action signal possible prosecutions, though a bill criminalizing embezzlement would not apply retroactively. Political tensions remain high, with opposition party APR disputing the audit process and challenging the IMF’s conclusions. The current government must now balance restoring fiscal credibility with social spending promises. Despite economic growth projected at 6% in 2024—driven by new oil and gas production—accessing external financing remains a challenge. Investors await clarity on the IMF’s next steps and potential reforms, as Senegal works to stabilize public finances and maintain investor confidence.

BOA Burkina Faso to Pay Dividends on April 22 With Over 9% Yield

Bank of Africa Burkina Faso (BRVM: BOABF) will pay an annual dividend of 428 FCFA ($0.72) per share for fiscal year 2024 on April 22, 2025, the lender said on the Regional Stock Exchange (BRVM).BOA Burkina Faso shares (BOABF) will trade ex-dividend starting Thursday, April 17, 2025. The register closing date is set for Tuesday, April 22, 2025. All pending stock exchange orders in the trading system on this date will be canceled.The company is currently the 15th most valuable firm on the BRVM with a market capitalization of XOF 190 billion, which makes up about 1.75% of the BRVM Stock Exchange equity market. The stock price has gained 42% year to date.

This dividend announcement comes as West African banks show resilience amid regional economic challenges. BOA Burkina Faso, part of the Morocco-based Bank of Africa Group, operates in a market facing security concerns and political transitions. The Bank of Africa Group maintains strong presence across the UEMOA (West African Economic and Monetary Union) zone, with subsidiaries in seven of the eight member countries. The 428 FCFA dividend represents a continuation of BOA Burkina Faso’s commitment to shareholder returns despite regional headwinds. The bank has worked to expand digital banking services to reach more customers in a country where banking penetration remains below 25%.

Unilever Sells Ivorian Unit to SDTM-Led Group Amid Revenue Decline

Unilever Overseas Holdings has agreed to sell its Ivorian subsidiary (BRVM: UNLC) to a consortium led by Société de distribution de toutes marchandises Côte d’Ivoire (SDTM CI), the company said. The transaction involves 9,163,608 shares, representing 99.78% of Unilever CI’s share capital and voting rights. The company’s share capital stands at 24,936 billion FCFA ($41.7 million). Financial terms were not disclosed.SDTM CI, a subsidiary of Ivorian conglomerate Carré d’Or, currently handles Coca-Cola bottling and distribution in Côte d’Ivoire. Unilever stated that a transition period will ensure operational continuity and service quality.The sale awaits regulatory approvals with completion expected in the coming months. For SDTM CI, the acquisition aims to strengthen its position in agribusiness and mass retail sectors while expanding its West African portfolio.

The divestment comes as Unilever faces significant market challenges in Côte d’Ivoire. The Anglo-Dutch consumer goods giant has seen revenues decline sharply in recent years. Unilever CI’s turnover fell from 46 billion FCFA ($76.9 million) in 2021 to 36.1 billion FCFA ($60.3 million) in 2022, a 21.4% drop. This was followed by a further 4% decline to 34.6 billion FCFA ($57.8 million) in 2023. The company, known for brands including Calvé mayonnaise, Omo detergent, and Signal toothpaste, has struggled to maintain market share amid increasing competition in the West African consumer goods sector.

African Startup Funding Q1 Decline Dashes Hopes of 2025 Rebound

African tech startups raised $284 million across 55 deals in Q1 2025, down 8.4% from the same period last year, according to Disrupt Africa’s latestAfrican Tech Startups Funding Report. The data signals a continuation of 2024’s funding downturn and tempers expectations of a market recovery.In 2024, total startup funding on the continent fell over 50% to $1.1 billion, with the number of funded ventures cut in half amid global capital constraints. The trend appears to be holding in 2025. The number of funded startups in Q1 declined by nearly half year-on-year, from 82 in Q1 2024 to 55 this year.The slowdown comes despite optimism triggered by late 2024 mega-rounds for Moniepoint and Yellow Card. The largest Q1 2025 deals were secured by LemFi (Nigeria), Naked (South Africa), and Gozem (Togo). If the current pace holds, annual funding totals will likely mirror 2024 levels.

The Q1 2025 numbers confirm that Africa’s tech funding winter is far from over. While the rate of decline is slowing—down 8.4% in Q1 2025 versus a 52.3% drop in Q1 2024—the ecosystem remains constrained by a global capital pullback. The drop in funded startups—from 87 in Q1 2022 to 55 this year—shows investor selectivity remains high, with capital consolidating around fewer, more established ventures. Significant Q1 funding rounds in Nigeria, South Africa, and Togo highlight regional resilience and the continued appeal of fintech and mobility. Still, unless macro conditions shift or new LP capital enters the market, a broader recovery appears unlikely in 2025. For startups, this means a focus on operational efficiency, path-to-profitability, and strategic fundraising. For investors, it’s a buyer’s market. The slowdown may also spark a rebalancing of valuations and greater emphasis on sustainable growth rather than aggressive expansion.

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.