Investors update: Nigerian stocks jump to 15-year high

Nigerian stocks jump to 15-year high after apex bank shakeup

Highlights

• Nigeria’s stock market soared to its highest level since July 2008 on Tuesday, the first trading day in Africa’s biggest economy since the ouster of central bank governor Godwin Emefiele.
• Investors betting on a currency devaluation sent the main index of the Nigerian Exchange 4% higher on the day to a closing price of 58,164 points, contrasting with a largely flat performance for MSCI’s main emerging equity benchmark. 
• The moves take Nigerian stocks’ year-to-date gains to 13.5%, more than double the return on the MSCI index. 

Source: Bloomberg

Our Takeaway

Nigeria is resetting monetary policy after its new president sacked the central bank head last Friday with reports now suggesting the regulator is on the verge of making a decision to allow its local currency to trade more freely against the dollar. That, along with the official removal of a costly fuel subsidy two weeks ago, has sparked hope of a turnaround of Africa’s biggest economy, sending equity market indexes and dollar bond prices to levels not seen in at least a decade. 

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Ecobank and Dashen Bank launch remittance app for Ethiopians

Highlights

• Ecobank has partnered with Dashen Bank to enable Ethiopians living in the diaspora to send money instantly to any Dashen Bank account, other local bank accounts, mobile money wallet, and cash pick-up using Ecobank’s Rapidtransfer International app (RTI).
• The cross-border remittance solution app, which is available in the rest of Ecobank’s 33 countries, enables the African diaspora residing in Europe to remit funds back to Ecobank countries in Africa.
• Users of RTI will reportedly be able to send money back home at an average fee of 1.5% of the funds being remitted.

Source: ABC

Our Takeaway

In 2017, it was estimated that the Ethiopian Diaspora comprised a significant population of at least two million individuals, primarily residing in Europe and North America. According to Knomad, the global knowledge partnership on migration and development, remittance inflows into Ethiopia amounted to $436 million in 2021 and an estimated $327 million in 2022 – a figure that the partnership between Ecobank and Dashen Bank seeks to tap into by rolling out the Rapidtransfer International App.

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Egypt’s Acasia Ventures expands into Nigeria with Lagos office

Highlights

• Egypt’s Acasia Ventures, formerly Cairo Angels, has opened an office in Lagos, Nigeria, to expand the firm’s reach and scope in the country.
• Acasia Ventures has so far invested in 12 African startups, a couple of which are based in Nigeria, including Credable and Fez Logistics.
• The announcement comes a few months after Acasia Group undertook a significant step in its regional expansion by setting up an office in Dubai.

Source: Wamda

Our Takeaway

Nigeria continues to be one of the youngest populations on the continent and a leading technology hub while new leadership in the country has committed itself to the growth of business, innovation, and technology as a cornerstone of economic policy. Acasia Ventures is planning to capitalize on that appetite and also pave the way for its sister company Acasia Impact to work with corporations in Nigeria to build custom, sector-specific programs around entrepreneurship and innovation.