Weekly Investor Update (December-WeekThree-2024)

14 min Read December 20, 2024 at 5:00 PM UTC

Monday

Juicyway Emerges from Stealth with $3M for Cross-Border Payments

African fintech startup Juicyway, specializing in stablecoin-powered cross-border payments, has raised $3 million in a pre-seed round led by P1 Ventures. The three-year-old startup, which previously operated in stealth, has processed over $1.3 billion in transactions from 4,000 users without a public app or marketing.Juicyway enables businesses and individuals to send, receive, and process global payments in fiat currencies and stablecoins. Its platform provides liquidity pools for local and international currencies like Nigeria’s naira, USD, and GBP, offering transparent, market-driven pricing that reduces costs and speeds up settlements.Key customers include corporates like Bolt and fintechs such as Piggyvest. The startup plans to use the funding to scale operations, expand its team, and enhance compliance infrastructure. Juicyway is also acquiring money transmitter licenses to operate across Africa and globally, aiming to bridge liquidity gaps in African currency markets and increase access to global economic opportunities.

Juicyway’s launch highlights the growing role of stablecoin technology in reshaping cross-border payments, particularly in Africa’s fragmented currency markets. Unlike traditional remittance platforms, stablecoins facilitate faster and cheaper transactions by bypassing conventional fiat transfers, addressing liquidity challenges, and enabling real-time pricing. The startup joins a wave of fintechs like Yellow Card and Conduit, which are applying stablecoin solutions to tackle Africa’s underrepresentation in global currency markets, which comprise less than 1% of the $5 trillion daily global forex market.

Egyptian Fintech Unicorn MNT-Halan Launches in UAE Market

Egyptian fintech unicorn MNT-Halan has officially launched in the UAE, bringing its financial super app to the Gulf Cooperation Council (GCC) region. The company’s first product in the market, Halan Advance, offers fast and secure salary financing to address the needs of the 3.7 million underbanked expatriates in the UAE.Backed by global investors, including Abu Dhabi’s Lunate fund, MNT-Halan plans to roll out additional services, including credit, payments, and investment products. Since its UAE presence began in April 2024, the company has partnered with leading employers and onboarded over 40,000 customers, targeting 250,000 users by the end of 2025.With a strong track record in Egypt, Turkey, and Pakistan, MNT-Halan aims to capitalize on the UAE’s rapid adoption of digital solutions and a combined monthly income of AED 10 billion among underserved communities. The expansion aligns with the company’s vision to enhance financial inclusion and economic empowerment across the region.

MNT-Halan’s UAE entry underscores a growing trend of fintechs targeting the region’s underbanked population. The UAE’s vibrant economy, high smartphone penetration, and 3.7 million underbanked expatriates present a significant market for tailored financial solutions. Halan Advance, the company’s salary financing product, exemplifies its focus on digital-first solutions that improve cash flow management for both employees and businesses. With compliance to UAE regulations and partnerships with key employers, MNT-Halan is positioned to redefine financial services in the GCC.

BRVM Rally Sees Stock Market Cap Cross $16B Historic Mark

Francophone West African regional stock exchange BRVM surpassed a historic milestone on Friday with its market capitalization exceeding 10,000 billion CFA francs ($16 billion). This marks a growth of over 1,100% since its 1998 launch when capitalization stood at 836.19 billion CFA francs.The surge reflects robust economicgrowth across WAEMU countries, which have maintained an average annual GDP growth rate of 5.8% for two decades. Market activity has also expanded significantly, with 200,000 securities and bond accounts circulating, representing nearly 20,000 billion CFA francs.In 2024 alone, the BRVM added over 2,000 billion CFA francs in market capitalization, fueled by increased activity and key listings, including the National Lottery of Benin, which raised 100.5 billion CFA francs.

The BRVM’s record-breaking growth positions it as a leading stock exchange in Africa, underpinned by economic resilience and investor confidence in the WAEMU region. Major drivers include sustained GDP growth and high-profile IPOs like the National Lottery of Benin, which bolstered both liquidity and market capitalization. The exchange’s expansion reflects broader trends in regional integration and capital market development in West Africa. The BRVM’s rise offers a blueprint for other regional exchanges aiming to leverage economic growth and innovation to attract capital and deepen investor participation. However, sustaining momentum will depend on ongoing reforms to enhance transparency, efficiency, and accessibility for both local and international investors.

Nigeria’s Inflation Hits 28-Year High on Rising Food, Transport Costs

Nigeria’s annual inflation rate rose to 34.6% in November, its highest since March 1996, driven by surging prices for corn, yam, and transport. This marks an increase from 33.9% in October, according to data from the National Bureau of Statistics.Food inflation rose to 39.9% from 39.2%, while core inflation, which excludes volatile items like food and energy, climbed to 28.75% from 28.4%. Recent flooding in northern Nigeria that destroyed crops and higher gasoline prices contributed to the rise.The central bank has increased its key interest rate by 875 basis points this year to curb inflation and support the naira, which has lost 41% of its value against the dollar. Governor Olayemi Cardoso expects inflation to begin easing in 2025 as monetary tightening takes effect. The government is also counting on deregulating the petroleum industry and improving security in food-producing regions to alleviate price pressures over time.

Nigeria’s inflation surge underscores the economic challenges the nation faces, including currency depreciation, agricultural disruptions, and higher energy costs. These factors have significantly impacted consumer purchasing power, particularly in food-dependent households, as food inflation nears 40%. The central bank’s aggressive rate hikes aim to stabilize prices and the naira, but broader structural reforms remain critical. Deregulating the petroleum sector could help address supply bottlenecks while improving security in the northeastern food-producing regions is vital for reducing agricultural disruptions. Inflation’s persistence also poses challenges for Nigeria’s monetary policy, as rising prices may slow economic growth and amplify hardship for the population. Policymakers must balance short-term inflation controls with long-term measures to stabilize the currency and ensure sustainable development.

Senegalese HealthTech Eyone Secures $1M to Expand in West Africa

Eyone, a digital health startup based in Senegal, has raised $1 million to scale its operations across West Africa.The funding was led by regional telecom provider Sonatel’s investment fund, Véhicule d’Investissement et de Financing (VIF), contributing $855,000. Senegalese bank BICIS provided an additional $145,000, signaling strong local support for the initiative.Founded eight years ago, Eyone addresses Africa’s healthcare challenges through a digital platform that integrates telemedicine, electronic health records, and patient-doctor connectivity. With the new funding, the company plans to enhance its infrastructure, partnerships, and user education.

Eyone’s funding reflects increasing investor confidence in Africa’s health-tech landscape. Recent examples include Nigeria’s MDaaS Global, which raised $3 million in March 2024, and Kenya’s Ilara Health, which secured $4.2 million in February 2024. These investments highlight the sector’s potential to address critical healthcare gaps. Despite challenges such as infrastructure and regulatory constraints, Eyone’s success underscores the resilience of Africa’s health-tech startups. By leveraging digital platforms to improve healthcare access and quality, these companies are shaping the future of healthcare delivery on the continent. Eyone’s expansion is set to play a key role in this transformation across West Africa.

Tyme is Africa’s Newest Unicorn After Raising $250M at $1.5B Valuation

Tyme Group, the digital banking firm backed by South African billionaire Patrice Motsepe, raised $250 million in its latest funding round, pushing its valuation to $1.5 billion. Latin America’s Nu Holdings led the round with a $150 million investment, marking its bet on fintech growth in Southeast Asia and Africa.Other contributors include M&G’s Catalyst Fund ($50 million) and existing investors Tencent, Gokongwei Group, and Norrsken22, who added another $50 million. African Rainbow Capital Investments remains Tyme’s lead shareholder with a 40% stake.TymeBank, the group’s South African subsidiary, has over 10 million customers, while its Philippines joint venture and new Vietnamese operations add to a 15-million global user base. The lender also targets Indonesia for growth, eyeing acquisitions to secure a banking license. Tyme plans to become the Philippines’ top retail bank and replicate its success in Indonesia before pursuing an IPO by 2028, aiming for a 30% return on equity in South Africa.

Tyme Group’s $250 million funding underscores growing investor confidence in fintech after a challenging period of rising interest rates. Its valuation at $1.5 billion marks it as one of Africa’s few unicorns, alongside notable fintech peers such as Flutterwave and MNT-Halan. The investment by Nu Holdings, Latin America’s largest digital bank, highlights Tyme’s strategic role in connecting emerging markets across Africa and Southeast Asia. Nu’s backing signals confidence in Tyme’s scalable model for digital financial inclusion. The digital lender’s IPO plans for 2028 reflect its ambitions to become a leading retail bank across emerging markets. For South Africa, Tyme’s performance reaffirms its role as the country’s only Black-owned commercial bank, with strong return-on-equity targets.

Ghana’s Equity Market Surges 50% Despite Falling Volumes

Ghana’s equity market soared in 2024, with the Composite Index rising nearly 50% year-to-date through November, compared to a 29.71% gain in the same period last year. The Financial Stock Index also rebounded sharply, gaining 23.64% after contracting 2.71% in 2023.Market capitalization surged by 46.66% to GHc108.36 billion, far outpacing the 15.08% growth recorded in November 2023.However, trading activity declined significantly. Volumes dropped 92.9%, from 131.71 million shares in November 2023 to 9.35 million. Traded value also fell by 83.85%, from GHc172.37 billion to GHc27.84 billion.

Ghana’s equity market reflects contrasting trends: robust price growth alongside steep declines in trading volumes and values. The reduced trading activity could signal a more selective market dynamic, with investors holding on to stocks amid strong price appreciation. The gains in market capitalization and the Financial Stock Index highlight growing investor confidence in Ghana’s economic recovery, even as lower liquidity raises questions about the depth of market participation. The performance underscores Ghana’s potential as an investment destination, but sustaining growth may require addressing the underlying factors behind declining trading activity.

Proparco Invests $5M in Equator Africa Fund for Climate Tech

Equator Africa Fund, a venture capital firm backing early-stage climate technology startups in Sub-Saharan Africa, has secured a $5 million investment from Proparco, the private-sector financing arm of the French Development Agency. The funding will support startups focused on renewable energy, sustainable agriculture, and green mobility.Equator Africa has invested in companies like SunCulture, which provides solar-powered irrigation systems, and Roam, a Kenyan company producing electric motorcycles and buses for African markets. The firm led Roam’s $14 million Series A round in 2024 to advance green mobility.Proparco’s investment aligns with growing interest in African climate tech. In 2023, the E3 Low Carbon Economy Fund for Africa closed at $48.1 million, with Proparco as a key partner.

Africa’s climate tech sector is attracting increased global investment. Roam raised $24 million in February 2024 to scale electric vehicle production, while funds like E3 Low Carbon are channeling capital into solar and EV startups. Investors recognize Africa’s potential to develop low-carbon solutions for renewable energy, agriculture, and mobility. These investments aim to address environmental challenges while boosting economic growth and job creation. Proparco’s support for Equator Africa Fund is expected to catalyze additional funding for climate tech startups, enabling them to scale and amplify their impact. As investment in this sector grows, African startups are positioned to play a central role in global climate action.

Bitcoin Surges Past $107,000 as Trump Plans US Strategic Reserve

Bitcoin hit a record high of $107,148 on Monday, extending its gains after US President-elect Donald Trump reiterated plans to establish a US Bitcoin strategic reserve, akin to the nation’s oil reserves. The cryptocurrency, up over 5% for the session, has risen 150% in 2024.Trump told CNBC that his administration would embrace crypto to ensure the US leads the global adoption of digital assets. “We’re gonna do something great with crypto,” Trump said, emphasizing competition with China and other nations. Governments worldwide hold 2.2% of Bitcoin’s supply, with the US possessing 200,000 Bitcoins, worth over $20 billion, according to CoinGecko.The news further fueled optimism in crypto markets, with Ethereum rising 1.85% to $3,975. MicroStrategy, the largest corporate Bitcoin holder, also surged as Nasdaq confirmed its inclusion in the Nasdaq-100 Index. Analysts see $110,000 as the next target but caution that implementing a strategic reserve would take time and require careful policy signaling.

Trump’s pro-crypto stance signals a shift in US regulatory attitudes, which contrasts with skepticism from the Federal Reserve. Analysts see the strategic reserve proposal as a symbolic tailwind for Bitcoin but note challenges in execution. Globally, countries like Russia and El Salvador are also embracing crypto. Russian President Vladimir Putin recently highlighted Bitcoin’s resilience, underscoring its role as an alternative asset amid geopolitical shifts. Meanwhile, El Salvador, the first country to adopt Bitcoin as legal tender, continues to accumulate the digital currency as part of its national reserves. The surge in Bitcoin reflects broader investor enthusiasm. The total cryptocurrency market value has doubled in 2024 to a record $3.8 trillion, driven by institutional adoption, pro-crypto policies, and spot ETFs. MicroStrategy’s Nasdaq-100 inclusion underscores growing corporate interest, further legitimizing Bitcoin as a mainstream asset.

Sourcefin Gets $8.2M to Boost SME Financing in South Africa

South African fintech Sourcefin has raised ZAR150 million (US$8.2 million) from Futuregrowth Asset Management’s High Growth Developmental Equity Fund (HGDEF).The funding will enable Sourcefin to expand its alternative financing and supply chain support for small and medium-sized enterprises (SMMEs), a sector often underserved by traditional financiers.Founded in 2020, Sourcefin addresses working capital challenges for SMMEs, particularly those fulfilling public and private sector purchase orders. CEO Joshua Kadish stated that the full funding amount will be reinvested into South Africa’s SMME sector, which he described as the “backbone of our economy.”

Sourcefin’s $8.2 million funding underscores the critical role of SMMEs in South Africa’s economy and the need for innovative financing solutions. Traditional lenders often fail to meet the sector’s unique needs, particularly in addressing cash flow gaps for government and private-sector contracts. With backing from Futuregrowth, Sourcefin aims to scale its offerings and empower more businesses to overcome financial barriers. The investment reflects a broader trend of targeting high-growth, impact-driven companies in South Africa, including other Futuregrowth-backed firms like Yoco and Ozow. Efforts like these are pivotal in fostering economic growth, job creation, and the resilience of SMMEs in challenging market conditions.

Cocoa Prices Hit Record $12,000 on Ivory Coast Output Concerns

Cocoa futures soared above $12,000 a ton in New York, marking a record high as worries over reduced production in Ivory Coast, the world’s largest cocoa grower, intensify. Prices surged 7.4% to $12,636 per ton, tripling this year due to fears of dry weather and reduced market activity.Dry conditions in West Africa, compounded by the Harmattan wind, are expected to lower cocoa output in February and March, according to ADM Investor Services.Ivory Coast’s 2024-25 production is forecast at 1.9 million tons, significantly below the government’s initial outlook of 2.1 to 2.2 million tons.

The record surge in cocoa prices underscores supply pressures as production struggles to meet global demand. Ivory Coast, producing over a third of global cocoa, faces a poor harvest, exacerbating stockpile shortages following last season’s record deficit. US warehouse inventories, tied to futures contracts, are at a two-decade low, while exchange liquidity remains thin, amplifying price volatility. With no rain forecast in West Africa and the Harmattan looming, further supply disruptions may fuel price increases, posing challenges for global buyers reliant on stable cocoa markets.

Nigeria Approves Shell’s $1.3B Asset Sale to Renaissance

Nigeria has approved a $1.3 billion deal for Renaissance Africa Energy, a consortium of local companies, to acquire Shell Plc’s onshore oil assets. The decision, announced by Petroleum Resources Minister Heineken Lokpobiri, reverses an earlier rejection of the deal in October.Renaissance, owned by firms including ND Western, Aradel Holdings, and Waltersmith Group, will take over Shell Petroleum Development Co., marking a step in Shell’s long-term strategy to exit the Niger Delta region. Shell confirmed receiving notification of the approval and is reviewing the decision.The deal has faced opposition from civil society groups, including Amnesty International, citing concerns over human rights and urging safeguards before proceeding.

The approval underscores Nigeria’s focus on increasing local ownership in its energy sector. This follows a similar move in October when Exxon Mobil’s onshore assets were sold to Seplat Energy. For Shell, the sale aligns with its global pivot from challenging onshore operations, particularly in regions like the Niger Delta, to focus on offshore and cleaner energy ventures. While the transaction enhances local participation in the oil sector, concerns over governance, human rights, and operational transparency will be critical in determining the long-term impact of these asset transfers on Nigeria’s energy industry.

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.