Weekly Investor Update (February-WeekOne-2025)

16 min Read February 7, 2025 at 5:00 PM UTC

Monday

Kenya’s Inflation Stays Below 5% in Boost for Rate Cut Prospects

Kenya’s inflation rate remained below the central bank’s 5% midpoint target for the eighth consecutive month, rising to 3.3% in January from 3% in December, according to the Kenya National Bureau of Statistics. The increase, driven by food and transport prices, was slightly above the 2.8% forecast in a Bloomberg survey.With inflation contained and the Kenyan shilling relatively stable, the Central Bank of Kenya (CBK) may cut interest rates for a fourth straight meeting on February 5. In December, the CBK lowered the benchmark rate by 75 basis points to 11.25%, exceeding market expectations.The Kenya Bankers Association has called for another rate cut to boost borrowing and economic growth. Kenya’s economy grew at its slowest pace in almost four years in Q3 2024, affected by anti-government protests and declining private sector credit.

Kenya’s low inflation and slow economic growth increase the likelihood of a monetary policy easing at the upcoming CBK meeting. Policymakers must balance supporting economic recovery while ensuring price stability. The Kenyan shilling’s stability against the US dollar has helped keep inflation low, reducing imported cost pressures. However, the economy remains fragile, with credit growth slowing and recent political unrest dampening investment sentiment. A rate cut could stimulate borrowing and business activity, but the CBK may remain cautious amid external risks such as global financial conditions and commodity price fluctuations. Investors will watch the CBK’s tone and economic projections for signals on future policy direction.

EM-Focused Cedar Money Raises $9.9M to Expand Stablecoin Payments

Cedar Money, a U.S.-based fintech startup, secured $9.9 million in seed funding to expand its stablecoin-powered cross-border payment infrastructure. The round was led by QED Investors and participated in by Lattice, NIV, Stellar, and Wischoff Ventures.The company helps businesses in emerging markets like Nigeria transact globally by bridging fiat payments with stablecoin transactions in the background. CEO Benjy Feinberg emphasized that the challenge isn’t just building payment rails but ensuring compliance with local and international banking regulations.Stablecoins are gaining traction in Africa, Latin America, and the Middle East, where businesses struggle with currency instability and high forex costs. Cedar Money, which launched operations in early 2024, already processes tens of millions in monthly transaction volume. It focuses on import-export businesses handling tangible goods.

The global payments industry is shifting, with stablecoin transaction volumes surpassing Visa, Mastercard, and PayPal, hitting $8.5 trillion in Q2 2024. Fintechs like Cedar Money, Conduit, and Caliza are capitalizing on the inefficiencies in traditional financial systems. Stablecoins reduce cross-border transaction costs, but regulatory hurdles remain. While two-thirds of international payments still go through the correspondent banking network, stablecoin-powered platforms account for only 0.01% of the market. With increasing regulatory acceptance and fintech investment, stablecoins could become a mainstream payment option, particularly in markets with currency volatility and inefficient banking infrastructure.

Ghana’s Inflation Falls First Time in Five Months to 23.5%

Ghana’s annual inflation rate eased slightly to 23.5% in January, down from 23.8% in December, marking the first decline in five months, according to Government Statistician Samuel Kobina Annim. The drop was driven by a slowdown in non-food inflation, though food prices continued to rise.Despite the decline, inflation remains well above the Bank of Ghana’s 8% target range (with a 6%-10% tolerance band). The central bank warned last week that inflation will take longer to return to target.The easing inflation comes as Ghana transitions to a new central bank governor, with the country still recovering from economic turmoil in its cocoa and gold sectors.

Ghana’s inflation slowdown offers little relief, as the 23.5% rate remains the second highest in nine months. The cocoa and gold sectors’ struggles have worsened economic conditions, impacting government revenue and currency stability. The Bank of Ghana faces a difficult balancing act—easing inflation while managing high interest rates that could slow economic growth. With inflation still far from target, monetary policy is unlikely to shift significantly in the short term. As Ghana works to stabilize its economy, exchange rate fluctuations, fiscal reforms, and external shocks will determine how quickly inflation falls to sustainable levels.

Africa’s Mobile Internet Market Heats Up as Demand Surges

With a 27% mobile internet penetration rate and rising demand, Africa’s mobile telecom market is highly competitive. The top five operators—MTN, Orange, Airtel, Maroc Telecom, and Vodafone—control most of the market, but over 150 players are competing for space.MTN leads with 150 million mobile internet users in 15 countries, followed by Orange (90M) and Airtel (66M, 14 countries). Vodafone dominates East Africa through Safaricom and Vodacom, while Maroc Telecom focuses on West and Central Africa.Fierce competition has led to aggressive price cuts, reducing data costs significantly. In Côte d’Ivoire, Nigeria, and Cameroon, the price per gigabyte dropped from $5 in 2020 to $1-$2 in 2024. However, this pricing pressure has slowed investment in 4G and 5G infrastructure. Despite high video consumption (91.8% watch weekly), only 320 million of 1.1 billion people use mobile internet in Sub-Saharan Africa. Infrastructure investment remains critical as broadband penetration is projected to double by 2030.

Africa’s mobile internet adoption is booming, but low margins threaten infrastructure expansion. Telecom operators struggle to balance affordability with network upgrades, particularly in ECOWAS, where 4G penetration is expected to jump from 26% to 48% by 2030. Video consumption drives demand, yet many lack reliable access due to cost constraints, political instability, and infrastructure gaps. Nigeria’s recent 50% tariff increase highlights operators’ struggles to sustain networks under pricing pressure. Despite challenges, investment in fiber, 4G, and 5G is critical. The winners in Africa’s mobile internet battle will be those who balance affordability with infrastructure investment, ensuring long-term network growth while meeting the continent’s rising digital demand.

Egypt’s Simplex Raises $13M for Computer Numerical Control Factory

Egyptian CNC machine manufacturer Simplex has secured $13 million to establish a 20,000-square-meter factory in Riyadh, expanding its footprint in the regional and global markets. The funding follows a Memorandum of Understanding (MoU) with Saudi Arabia’s National Industrial Development Centre, aligning with the Kingdom’s Vision 2030 strategy to localize advanced technology.Simplex, a Flat6Labs graduate, supplies Computer Numerical Control (CNC) machines to 50 industries across 21 countries. The Saudi factory, expected to begin operations in Q1 2026, will enhance production capacity to meet rising global demand.“We see Saudi Arabia as a strategic hub for exporting CNC machines globally,” said Mohamed Mansour, co-founder and chief commercial officer. The expansion strengthens Simplex’s regional leadership in industrial automation.

Simplex’s Saudi expansion highlights the Kingdom’s ambition to localize technology and boost exports. The CNC sector plays a vital role in precision manufacturing, essential for industries like aerospace, automotive, and construction. Saudi Arabia is investing heavily in industrial infrastructure, leveraging Vision 2030 to reduce dependence on oil. Simplex’s presence in Riyadh will contribute to the Kingdom’s efforts to become a regional manufacturing hub. For Simplex, the factory strengthens its competitive edge in the CNC market, helping it scale production and expand internationally. The move also underscores the growing role of Middle Eastern economies in global industrial technology development.

US-China Trade War May Open New Markets for African Exporters

A US-China trade war could create export opportunities for Africa, as tariffs force the world’s top economies to source goods elsewhere, said Iain Williamson, CEO of Old Mutual Ltd. “There could be opportunities if we can substitute some Chinese imports into America, particularly in raw materials and agriculture,” Williamson told Bloomberg.US President Donald Trump is set to impose 25% tariffs on Canada and Mexico, with 10% duties on China expected. This could shift global trade flows, benefiting African suppliers. However, tariff threats have strengthened the dollar, weakening the rand and other emerging-market currencies, which could slow African economic growth if central banks keep interest rates elevated.Trump has also questioned US aid to Africa, raising concerns about the region’s financial reliance on foreign assistance. Williamson emphasized the need for Africa to reduce aid dependence and seize trade opportunities.

A US-China trade war may redirect global supply chains, creating new export markets for Africa, particularly in commodities and agriculture. While weaker currencies and trade uncertainty pose risks, African nations can strategically position themselves as alternative suppliers. With US aid under scrutiny, Africa’s economic resilience may hinge on boosting self-reliance and capitalizing on global trade shifts.

SITAB Share Price Hits Highest Level in Nearly a Decade

The BRVM stock market closed higher on Tuesday, reflecting investor confidence. The Composite index rose 0.89% to 279.71 points, while the BRVM-30 gained 0.94% to 140.92 points. The Prestige index climbed 1.35% to 117.02 points.Sitabled gains, rising 6.93% to 8,020 FCFA, followed byEcobank Group(+6.67%) at 16 FCFA, andUniwax(+6.49%) at 410 FCFA. Sitab shares hit their highest level in nearly a decade.Meanwhile,Oragroupfell 5.33% to 1,600 FCFA,Total Senegallost 2.17% to 2,250 FCFA, andAir Liquidedeclined 2.04% to 480 FCFA. Market capitalization gains reflected strong investor interest, withEcobank CIup 3.93% (18.17 billion FCFA) and the Ecobank group share price up 6.67% (18.08 billion FCFA).

The BRVM continues to show resilience, with major indices rising amid sustained investor interest. Gains in banking and consumer sectors suggest growing confidence, while declines in select stocks indicate market caution. Strong transaction volumes highlight liquidity, with Sonatel leading trading activity. Total market transactions reached 659.63 million FCFA, with Sonatel SN leading in trading volume, accounting for 46.59% (307.33 million FCFA).

Nigerian Fintech Accrue Raises $1.58M to Expand Cross-Border Payments

Nigerian fintech Accrue has secured $1.58 million in seed funding to expand its cross-border payment infrastructure and grow its team. The round was led by Lattice Fund, with participation from Kraynos Capital, Distributed Capital, Lava, and Maven 11.Founded in 2021 by ex-Helicarrier employees Zino Asamaige, Adesuwa Omoruyi, and Clinton Mbah, Accrue initially focused on crypto investments before pivoting to money transfers. The startup leverages an agent network model, similar to M-Pesa and Moniepoint, to enable faster, more reliable transactions.With 200,000 users across Nigeria, Ghana, Kenya, South Africa, and four other African countries, Accrue aims to enhance its product offering and address financial inefficiencies in Africa’s fragmented payment ecosystem.

Accrue’s agent-based model provides a faster alternative to traditional remittance channels, tackling high fees and slow transaction speeds in Africa’s $100 billion remittance market. The cross-border payment space is heating up, with fintechs like Flutterwave, Chipper Cash, and MFS Africa competing for market share. Accrue’s network-driven approach could differentiate it in high-volume corridors, particularly intra-African trade and digital remittances. With fresh capital, Accrue plans to scale operations, expand infrastructure, and refine its payment solutions, positioning itself as a key player in Africa’s evolving fintech landscape.

Nigeria Targets 2.7M Barrels Daily Oil Output by 2027

Nigeria plans to increase daily oil and condensate production by 60% to 2.7 million barrels per day (bpd) by 2027, according to Olu Verheijen, special adviser on energy to President Bola Tinubu.The increase will come partly from condensate production, allowing Nigeria to remain within its OPEC+ crude quota of 1.5 million bpd while demonstrating the capacity for a higher allocation. The boost is driven by improved security around production and transportation sites.Nigeria produced 1.67 million bpd in December 2024, up from 1.1 million bpd in 2022, as it seeks to increase revenue amid economic challenges. The country is also poised to become a net exporter of refined petroleum products, with the Dangote refinery scaling production and fuel subsidy removals attracting new refinery investments.

Nigeria’s oil expansion plan reflects its strategy to stabilize fiscal revenue, improve security, and strengthen its refining capacity. The removal of fuel subsidies has made downstream investments commercially viable, attracting private sector interest in refinery projects. If successful, Nigeria could reduce fuel imports and strengthen its trade balance, positioning itself as a regional energy leader. With OPEC+ quotas limiting crude output, Nigeria’s focus on condensate production and refining could help it maximize revenue without breaching production limits.

South Africa Factory Activity Contracts on Mozambique Disruptions

South Africa’s factory activity declined for the third straight month in January, as trade disruptions with Mozambique, jet fuel shortages, and steel plant closures dampened business sentiment. Despite the downturn, business expectations for six months ahead remain positive at 64.9, though lower than 67.6 in December.Absa’s Purchasing Managers’ Index (PMI) fell to 45.3 from 46.2 in December, marking the lowest reading since August. A PMI below 50 signals contraction, reflecting a slowdown in manufacturing momentum after last year’s rebound.Mozambique’s post-election unrest disrupted border crossings and key rail corridors, leading to a month-long shutdown of critical trade routes. The planned closure of ArcelorMittal SA’s longs steel production is also a concern, with supply chain risks and cost pressures looming for manufacturers.

South Africa’s manufacturing sector faces headwinds from regional trade instability, fuel shortages, and supply chain disruptions. The Mozambique crisis has hit exports, while the shutdown of ArcelorMittal SA’s steel plants may increase production costs. While PMI data signals contraction, businesses remain cautiously optimistic about the future. However, global trade uncertainties and regional instability could further impact supply chains and investment sentiment in 2024.

University Technology Fund II Launches With $21M Target for Innovation

Stocks & Strauss Fund Manager has launched University Technology Fund II (UTF II), securing key agreements and committing significant capital toward its ZAR400 million ($21.4 million) target. The fund will invest in 15 to 20 companies, focusing on scalable university-originated technologies.Building on UTF I, which backed Hyrax Biosciences (a bioinformatics leader in COVID-19 variant detection) and CubeSpace (a NASA-trusted satellite control tech), UTF II expands its mandate to include South African university alumni. The goal is to replicate Silicon Valley’s university-driven innovation ecosystem.Anchor investors include the SA SME Fund, Stellenbosch University, and Allan & Gill Gray Philanthropies Africa, as well as the University of Pretoria, UCT, and WITS. UTF II seeks to commercialize cutting-edge intellectual property and attract local and global investment.

South Africa’s university innovation sector is emerging as a deep-tech investment hotspot, with UTF II unlocking high-value intellectual property from leading research institutions. Universities offer skilled talent, cross-discipline expertise, and institutional support, making them ideal incubators for disruptive technologies. The fund’s expansion to alumni-led startups strengthens its long-term entrepreneurial ecosystem. UTF II’s success could drive local and international investor interest, positioning South Africa’s universities as key players in global technology commercialization.

Burkina Group Coris Invest Raises $31.5M via Private Bond Issuance

Coris Invest Group has raised 20 billion FCFA (around $31.5 million) through a private bond placement in its debut on the regional BRVM stock market.The bonds were issued at a 110% rate and backed by credit ratings of “A—” (long-term) and “A2” (short-term) in local currency, reflecting low risk for investors.The successful bond placement underscores investor confidence in Coris Invest Group’s financial stability and creditworthiness. The proceeds will support the Group’s expansion and investment strategy across key sectors.

As the regional financial market grows, corporate bond issuances are becoming an alternative funding source. They provide businesses with long-term capital while offering investors diversified fixed-income opportunities. In 2024, some 29 new introductions were recorded on the bond market for an estimated sum of 1.639 trillion ($2.6 billion).

Kenyan Central Bank Pushes Banks to Cut Lending Rates

Kenya’s central bank is inspecting commercial banks to understand why lending rates remain high despite a series of rate cuts. The Central Bank of Kenya (CBK) has slashed its benchmark rate by 2.25 percentage points since August, bringing it to 10.75%. However, average bank lending rates remained at 16.9% in December, Governor Kamau Thugge said.On Wednesday, CBK cut its policy rate by another 50 basis points to 10.75%, marking its fourth consecutive cut. It also lowered the Cash Reserve Ratio by 100 basis points to 3.25% to encourage lending.The bank aims to boost economic growth, which slowed to 4.6% in 2024. It expects GDP to expand 5.4% in 2025, supported by key service sectors, agriculture, and credit recovery. Inflation is projected to stay within the target range of 2.5%-7.5%.

Kenya’s central bank is pressuring lenders to pass on rate cuts to borrowers. On-site inspections of banks are part of efforts to ensure lower funding costs translate into cheaper loans. The central bank expects a modest improvement in economic growth, supported by agriculture and exports. However, slow transmission of rate cuts to lending rates could hinder credit expansion. The country’s current account deficit is forecast at 3.8% of GDP in 2025, slightly higher than 2024’s estimated 3.7%. A balance of payments surplus of $1.466 billion in 2024, supported by IMF inflows, helped boost Kenya’s foreign reserves by $2.749 billion. CBK’s challenge remains to ensure commercial banks align their lending rates with its easing policy, a critical factor for sustaining economic momentum.

Mobile Devices Spur Record $1.8B Gaming Revenue Boom in Africa

Africa’s gaming industry grew 12% to $1.8 billion in 2024, outpacing the global average of 2.1%, according to a report by Carry1st and Newzoo. The continent’s gaming community expanded 10% to 349 million players, with mobile gaming contributing 89% of total revenue.Egypt led gaming revenue with $368 million, followed by Nigeria at $300 million and South Africa at $278 million. Eritrea and Niger saw the fastest growth, while Equatorial Guinea and Seychelles were the slowest.The industry’s expansion is driven by increasing smartphone adoption, falling data costs, and improved internet infrastructure. Popular titles include Candy Crush, Roblox, Valorant, and Call of Duty: Mobile.

Africa is a rare bright spot in a maturing global gaming industry, benefiting from a young, tech-savvy population. Mobile gaming dominates, allowing the continent to bypass traditional gaming platforms. Faster internet and local gaming servers have enhanced user experience, making eSports competitions more common. Shooter games like PUBG Mobile and Free Fire are gaining popularity alongside casual titles. With continued digital adoption, Africa’s gaming sector is poised for further growth, attracting global developers and investors.

StarkWare Launches $4M Fund for African Blockchain Startups

StarkWare, an Israeli blockchain company valued at $8 billion, has launched a $4 million fund to invest in pre-seed and seed-stage startups in Africa. The fund offers grants of up to $150,000, with larger investments available for projects building on StarkNet, its Ethereum-based decentralized application platform.The fund targets startups in West, South, and East Africa, focusing on teams with technical expertise and local business insight. StarkWare is looking for projects in countries with high inflation, unstable exchange rates, or low financial inclusion.Selected startups may receive further investment of up to $500,000 and mentorship from StarkWare. The company aims to support blockchain-based financial solutions that bypass traditional banking systems.

Africa’s population is expected to reach 2.5 billion by 2050. With $6.7 trillion in projected consumer and business spending by 2030, blockchain adoption is growing. The continent’s youthful population and increasing crypto usage also present opportunities for decentralized finance. StarkWare’s StarkNet, a Layer 2 Ethereum solution, could help scale blockchain use across the continent. Its investment reflects a broader interest in Africa’s blockchain potential.

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