Weekly Investor Update (February-WeekThree-2025)

17 min Read February 21, 2025 at 5:00 PM UTC

Monday

Togo’s ruling party wins senatorial elections despite opposition criticism

Togo’s ruling Union for the Republic (Unir) party won 34 of the 41 contested senatorial seats in Saturday’s elections, the Electoral Commission announced. The results will be submitted to the Constitutional Court for final validation.The election was the final step in the implementation of the new constitution, which President Faure Gnassingbé signed into law in May 2024. The reform replaces presidential elections with a parliamentary system, in which the president of the republic plays a ceremonial role, while executive power passes to the president of the Council – who is expected to be Faure Gnassingbé, given Unir’s dominance in parliament.The Senate, composed of 61 members, includes 20 people appointed by the President of the Council of Ministers. The vote was carried out by 1,527 municipal councilors and 179 regional councilors.

Togo’s constitutional change consolidates power within the Unir, raising concerns about democratic representation. The opposition and civil society see the changes as a strategy for Faure Gnassingbé to extend his rule indefinitely, bypassing previous term limits. The main opposition parties boycotted the election, citing a lack of transparency. The main opposition party, ADDI, participated in the poll but won only one seat, while six others were awarded to smaller parties. Foreign media were denied accreditation, as was the case in legislative and regional elections in April. The reform is part of a broader trend in parts of Africa where ruling parties are restructuring political systems to maintain control. With Unir’s legislative majority and the Senate now in place, Faure Gnassingbé is in a position to extend his influence beyond the 2025 election, consolidating his two-decade rule.

Ivorian Firm Sucrivoire Returns to Profitability After Strong Growth

Sucrivoireposted a revenue increase of 28% in 2024, reaching 87.2 billion FCFA from 68.1 billion FCFA in 2023. Operating profit rose to 8.1 billion FCFA from a prior-year loss of 4.9 billion FCFA, while net profit reached 2.59 billion FCFA, reversing a 10.3 billion FCFA loss in 2023.Sugar production rose 19% to 88,694 tonnes, while sugar sales increased 20% to 142,639 tonnes. Cane processing volume increased 11% to 1.02 million tonnes. The improvements were driven by higher sugar extraction rates, reduced plant downtime, and operational efficiencies.The company is currently the 38th most valuable stock on the BRVM with a market capitalization of XOF 14.7 billion. It began the year with a share price of 775 XOF but has since lost 3.23% off that price valuation, ranking it 37th on the BRVM in terms of year-to-date performance.

Sucrivoire’s recovery reflects its financial restructuring and efficiency improvements. The company benefited from optimized production schedules and reduced process losses, leading to higher output and improved margins. As sugar demand remains strong, Sucrivoire aims to maintain production growth and strengthen market position. Its restructuring plan, approved in August 2024, is progressing, with management focused on financial discipline and operational improvements. The company plans to expand activities while integrating sustainable practices to ensure long-term growth.

China’s Transsion Maintains Dominance in Africa Smartphone Market

Transsion, the Chinese smartphone maker behind Tecno, Infinix, and Itel, solidified its dominance in Africa and expanded globally in 2024. Holding 50% of the African market, the company exported over 106 million smartphones worldwide, according to a February report by Canalys. This 15% growth placed Transsion fourth globally, surpassing Oppo and trailing Apple, Samsung, and Xiaomi.In Africa, Transsion led the market with 9.3 million units sold in Q3 2024, driven by Itel’s 34% growth and strong sales from Infinix and Tecno. Egypt emerged as the region’s top market, recording a 34% increase in smartphone sales, fueled by localized production that cut import costs.Meanwhile, Morocco saw a 24% decline due to tax hikes. Beyond Africa, Transsion ranked third in Southeast Asia with 16% market share, tying with Xiaomi. In Q4 2024, it led smartphone shipments in the region, supported by new product launches and distribution expansion.

Transsion’s success highlights its strategic focus on affordability, local production, and distribution network expansion. The company’s dominance in Africa is built on budget-friendly models tailored for emerging markets, where price sensitivity remains high. Egypt’s shift to localized production reflects a broader trend in reducing import reliance. This strategy not only cuts costs but also strengthens supply chain resilience. The move could serve as a model for other African nations aiming to build local manufacturing capabilities. Globally, Transsion’s rise suggests increasing competition in mid-to-low-end smartphone segments. Its ability to outpace Oppo underscores shifting consumer preferences in emerging markets. Despite a decline in revenue from €7.1 billion in 2022 to nearly €6 billion in 2023, its shipment growth indicates sustained demand. The coming year will test whether Transsion can maintain momentum amid economic uncertainties and evolving market dynamics.

Ethiopia, UK’s Asset Green Partner on $600M Dairy Project

Ethiopia’s sovereign wealth fund, Ethiopian Investment Holdings (EIH), has signed a $600 million shareholder agreement with UK private equity firm Asset Green to develop a large-scale dairy and commercial farming project.The investment will be implemented in two phases. The first phase will establish a dairy farming and processing operation, including integrated feed farming on 15,000 hectares.The second phase will expand into commercial farming, integrating cotton, oilseed, and rice production with processing facilities and an outgrower support center. Asset Green will hold a majority stake, with both partners seeking additional investors.

Ethiopia’s dairy project is part of a broader push to modernize its agriculture sector and attract large-scale foreign investment. The partnership with Asset Green aligns with Ethiopia’s goals of increasing productivity, reducing import dependency, and enhancing agricultural value chains. By introducing advanced technology, the project aims to improve efficiency and promote knowledge transfer to local farmers. The second phase’s expansion into cotton, oilseed, and rice farming supports Ethiopia’s push for agricultural diversification and value-added exports. With Ethiopia’s agriculture sector contributing over 30% to GDP and employing 70% of the workforce, large-scale commercial investments like this could reshape the industry. However, implementation challenges, including regulatory risks, infrastructure gaps, and market access, will be key factors in determining long-term success.

NSIA Banque, CDC-CI Capital Sign $4.9M Deal on Green Investments

NSIA Banque Côte d’Ivoireand CDC-CI Capital have signed a 3 billion FCFA ($4.9 million) financing agreement to support green investment projects, particularly in the agro-industrial sector.The deal, signed on January 30, 2025, aims to fund initiatives that reduce greenhouse gas emissions, improve waste management, and protect biodiversity.This financing will help Ivorian businesses transition to sustainable practices while promoting financial inclusion and economic growth. The partnership also strengthens CDC-CI Capital’s role in consolidating the financial sector by supporting a key banking institution with strong growth potential.

The agreement underscores NSIA Banque’s commitment to sustainability and SME support. By financing environmentally responsible projects, the bank aligns with Côte d’Ivoire’s broader economic and ecological transition goals. Green financing is gaining momentum in Africa, with financial institutions increasingly backing sustainable projects. NSIA Banque’s focus on financial inclusion and tailored development financing positions it as a key player in Côte d’Ivoire’s evolving banking sector. The collaboration with CDC-CI Capital reflects a growing trend of public-private partnerships aimed at boosting economic resilience through sustainable investments.

Francophone Africa Sees Surge in Private Capital Activity on Reforms

Francophone Africa has become a growing investment destination, attracting $4.8 billion in private capital across 356 deals between 2012 and mid-2024, according to the African Private Equity and Venture Capital Association (AVCA).While smaller than Anglophone Africa’s market, investment activity has accelerated, with annual transactions nearly doubling since 2021. Regulatory reforms, new financing structures, and a growing tech ecosystem drive this. The rise of venture capital and private debt offers new funding options for startups and SMEs.Senegal, Côte d’Ivoire, and the Democratic Republic of Congo account for 49% of investments. Venture capital, only 17% of deals from 2012 to 2020, grew to 60% between 2021 and 2024, outpacing the rest of the continent. Key investors include Janngo Capital, Joliba Capital, and Ring Africa, targeting fintech, edtech, and cleantech sectors.

The region has also made strides in gender diversity, with women-led startups representing 16% of transactions, surpassing Africa’s 14% average. However, challenges persist. Investment remains concentrated in a few countries, while others, such as Chad and the Central African Republic, struggle to attract capital. Infrastructure projects face funding shortages and market fragmentation, limiting broader economic transformation. As Francophone Africa narrows the gap with Anglophone markets, investors will need to navigate regulatory complexities and sectoral disparities to sustain growth. The region’s trajectory suggests increasing opportunities, but success will depend on continued policy improvements and deeper capital market integration.

Nigeria’s Inflation Slows to 24% After Data Revision

Nigeria’s annual inflation rate dropped to 24.5% in January from an unrevised 34.8% in December after the National Bureau of Statistics (NBS) adjusted its methodology for calculating household expenditures.The revision, the first in 16 years, rebased the Consumer Price Index to reflect current consumption patterns. Food inflation also slowed to 26.1% from an unrevised 39.8% in December.The recalibration of inflation data introduces uncertainty over the central bank’s next interest rate decision, as policymakers assess the real impact of price pressures.

Nigeria’s inflation surge has been driven by President Bola Tinubu’s economic reforms, including the removal of fuel subsidies and the naira devaluation. These policies aim to stabilize public finances but have intensified cost-of-living pressures. The revised inflation data could influence monetary policy decisions, with the central bank needing to balance inflation control with economic growth. Investors and analysts will watch for the bank’s next move as Nigeria navigates inflationary risks and reform-driven economic shifts.

EIB Invests $15.7M in IPAE Fund to Boost African SMEs

The European Investment Bank (EIB) has invested $15.7 million in the IPAE 3 fund managed by Investisseurs & Partenaires (I&P). The fund supports high-growth African businesses in key sectors, including agriculture, health, energy, water, and industry.IPAE 3 aims to create over 4,000 direct jobs, with at least 40% reserved for women. The fund aligns with the 2X Challenge, which promotes women entrepreneurs. The EIB, along with the West African Development Bank (BOAD) and Proparco, is among the fund’s first investors and aims to attract further public and private investment.I&P operates in Ivory Coast, Ghana, Senegal, and Madagascar, also covering Benin and Togo. The EIB expects its investment to generate 4.5 times additional capital for SME financing in West Africa and Madagascar.

The EIB’s investment highlights the growing role of development finance in strengthening Africa’s private sector. SMEs in West Africa and Madagascar face challenges in accessing capital, limiting growth and job creation. IPAE 3 offers structured financing to responsible and innovative businesses addressing key regional challenges. This investment also emphasizes the importance of gender inclusion in economic growth. With 40% of jobs created allocated to women, IPAE 3 aligns with broader initiatives supporting female entrepreneurship. The EIB’s involvement signals confidence in I&P’s investment strategy. By mobilizing additional capital, the fund aims to enhance financial inclusion and build sustainable businesses.

South Africa Jobless Rate Falls as Finance, Manufacturing Add Jobs

South Africa’s unemployment rate declined to 31.9% in the fourth quarter of 2024, down from 32.1% in the previous quarter, according to data from Statistics South Africa. The number of employed persons increased by 132,000 to 17.1 million, while the number of unemployed persons fell by 20,000 to 8 million.The finance sector led job creation, adding 232,000 jobs, followed by manufacturing with 41,000. However, community and social services lost 63,000 jobs, and trade shed 48,000.Despite the slight improvement, South Africa’s unemployment remains structurally high. The government’s new economic strategy aims to boost growth above 3% to drive job creation.

President Cyril Ramaphosa has pledged 940 billion rand ($51 billion) for infrastructure spending over three years to stimulate employment. Finance Minister Enoch Godongwana’s upcoming budget speech is expected to outline further fiscal measures. The Treasury estimates that 30.6% of the population will receive social grants over the next three years, underscoring the economic strain. While the job market shows signs of recovery, sustained growth and labor market reforms will be essential for long-term improvements.

Morocco Plans Eurobond Sale to Fund Reforms, World Cup Projects

Morocco is preparing to issue euro-denominated bonds on the international market for the first time since 2020 as it seeks to finance economic reforms and infrastructure investments ahead of the 2030 FIFA World Cup.Finance Minister Nadia Fettah Alaoui confirmed the plan, marking the country’s first foreign bond sale since a $2.5 billion dollar-bond issuance in 2023. The government aims to raise funds in euros rather than dollars to align with its financing needs.The move comes as Morocco ramps up spending on major projects, including transport and stadium upgrades, while also working on capital market reforms.

Morocco’s bond issuance signals its strategy to diversify funding sources and strengthen capital markets. A planned derivatives market and new financial instruments, including ETFs and Sharia-compliant mutual funds, also aim to attract domestic and foreign investors. The country’s growing infrastructure needs, driven by World Cup preparations and broader economic reforms, fuel demand for external financing. With rising debt levels, Morocco must manage borrowing carefully while ensuring that investments generate long-term economic benefits. The bond sale will test investor confidence in Morocco’s fiscal management as it seeks to balance ambitious spending with financial stability. If successful, it could set the stage for further capital market development and reinforce Morocco’s position as a key financial hub in North Africa.

Kenya’s Tourism Earnings Expected to Reach $4.3B in 2025

Kenya expects tourism earnings to increase by 24% to 560 billion shillings ($4.33 billion) in 2025, up from 452.2 billion shillings in 2024, according to Tourism and Wildlife Secretary Rebecca Miano. The country aims to attract 3 million visitors this year after seeing a record 2.4 million arrivals in 2024.Tourism remains one of Kenya’s top foreign-exchange earners, alongside tea exports and remittances. Growth in the sector has been driven by government-led marketing campaigns, product diversification, and improved air connectivity.The U.S. remains Kenya’s top source market, accounting for 12.8% of total arrivals, followed by Uganda and Tanzania. Cruise tourism saw a 163.5% increase, reflecting Kenya’s efforts to expand its tourism offerings.

Kenya’s tourism sector is rebounding strongly, supported by strategic government initiatives and growing international interest. Increased connectivity, digital marketing, and new tourism segments like MICE (Meetings, Incentives, Conferences, and Exhibitions) have helped sustain growth. Regional travel within the East African Community is also rising, with Tanzania and China contributing the highest increases in arrivals. Africa remains the largest source market, accounting for 40.8% of visitors. While the sector’s outlook is positive, maintaining momentum will require continued investment in infrastructure, security, and service quality. Global economic conditions and currency fluctuations could also impact the pace of growth. Kenya’s ability to sustain its tourism gains will depend on ongoing policy support and market expansion efforts.

VAT Dispute, Coalition Tensions Force South Africa Budget Delay

South Africa’s government postponed its annual budget presentation after a dispute over a proposed two-percentage-point increase in value-added tax (VAT) to 17%.Finance Minister Enoch Godongwana had signaled the need for a tax hike but withheld details until hours before his scheduled speech, triggering backlash within the coalition government. The delay marks the first time in South Africa’s democratic history that a budget has been postponed due to internal disagreements.The ruling African National Congress (ANC), which lost its parliamentary majority in 2024, now relies on coalition partners to pass fiscal measures. The Democratic Alliance (DA) opposed the VAT increase, calling it harmful to the economy.

The budget dispute underscores the fragility of South Africa’s 10-party coalition government. Fiscal challenges, including rising debt and spending pressures, require difficult trade-offs between borrowing, expenditure cuts, and tax hikes. The delay follows U.S. President Donald Trump’s decision to cut U.S. aid to South Africa, further straining public finances. Investors and businesses have raised concerns about policy uncertainty, with the Black Business Council warning of negative market reactions. The ANC and DA remain divided on key policies, including land expropriation and education reforms. The government must navigate coalition tensions while addressing economic stagnation and a widening fiscal gap. The rescheduled budget, expected next month, will test the administration’s ability to deliver a credible economic plan.

China, Korea Send $4M to Africa CDC as U.S. Cuts Funding

China and South Korea have provided $4 million to the Africa Centres for Disease Control and Prevention (Africa CDC) to help address funding shortfalls caused by U.S. aid reductions.The U.S. had initially pledged $500 million to the agency but cut its commitment to $385 million, leaving a significant gap, Africa CDC Director-General Jean Kaseya said Thursday.Africa relies on external sources for 84% of its healthcare funding, and the shortfall has prompted Africa CDC to engage with the U.S. government, private sector partners, and African nations. The agency has also launched an African Epidemic Fund, consolidating leftover Covid-19 funds to provide immediate resources for outbreak response and health system resilience.

The funding cuts highlight Africa’s vulnerability to external aid shifts. With the U.S. scaling back, Africa CDC is seeking alternative funding sources to maintain public health security. A new mpox vaccine tech transfer agreement between Bavarian Nordic A/S and an unnamed African company signals growing efforts to localize vaccine production. If successful, this initiative could strengthen Africa’s pharmaceutical industry and reduce reliance on imports. While external support remains crucial, Africa CDC’s push for local fundraising and manufacturing reflects a broader shift toward self-sufficiency in healthcare financing and epidemic response.

Egypt Holds Rates at Record High Amid Global Uncertainty

Egypt’s central bank kept its benchmark interest rates unchanged for the seventh consecutive time, citing economic uncertainty from U.S. protectionist policies and regional geopolitical risks.The deposit rate remains at 27.25%, while the lending rate stays at 28.25%, in line with expectations from most economists surveyed by Bloomberg. The decision comes as Egypt manages inflation risks and monitors economic recovery.Domestic economic activity accelerated in Q4 2024, led by manufacturing and transportation, while unemployment fell to 6.4% from 6.7% the previous quarter. Inflation has been slowing, with headline inflation at 24% in January 2025, down from a record 38% in September 2023.

Egypt’s monetary policy remains cautious as the central bank weighs the impact of global trade tensions and fiscal adjustments. Inflation is expected to decline significantly in 2025, but non-food inflation remains persistent at 25.5% on average. The central bank will assess the timing of potential rate cuts on a meeting-by-meeting basis. With economic growth improving and inflation stabilizing, policymakers may consider easing later in 2025 if external risks subside.

P1 Ventures Closes $50M Fund to Expand African Startup Investments

Pan-African early-stage VC firm P1 Ventures has closed its first institutional fund at $50 million, attracting backing from African conglomerates, family offices, and global partners, including the World Bank’s IFC. The firm, founded in 2020, focuses on high-growth startups beyond Africa’s traditional tech hubs.P1 Ventures recently co-invested with Accel in Moroccan AI-powered hotel booking platform Nuitee’s $48 million Series A, its largest deal to date. With over $60 million in assets under management, P1 Ventures has previously backed Algerian super app Yassir and Moroccan fintech Chari.P1 Ventures’ fund launch signals growing confidence in Africa’s tech ecosystem despite a funding slowdown. The firm’s AI-driven investment strategy, tracking over 10,000 startups, enables it to identify scalable opportunities in AI and fintech.

By backing startups like Egypt’s StakPak and South Africa’s Salus, P1 Ventures supports African companies expanding globally. Its portfolio has generated over 6,000 jobs and raised 35x follow-on capital per dollar invested. With experienced advisors, including Index Ventures’ Bernard Dalle and former Uber CBO Emil Michael, the firm is well-positioned to drive Africa’s next wave of venture growth. As execution-focused founders emerge, P1 Ventures sees billions in untapped value across the continent.

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