Weekly Investor Update (March-WeekFour-2025)

13 min Read March 28, 2025 at 5:00 PM UTC

Monday

BOA Benin to Tap Reserves for Dividends Despite Profit Drop

Bank of Africa (BOA) Benin plans to draw from its reserves to maintain dividend payouts, despite reporting an 8.74% decline in 2024 net profit. The proposal will be voted on at the General Meeting on April 2 in Cotonou.Net income fell from 21.53 billion FCFA ($35.49 million) in 2023 to 19.65 billion FCFA ($32.39 million) in 2024, impacted by regional pressures such as the devaluation of the Nigerian naira, border closures with Niger, and a 300 basis point rise in WAEMU refinancing costs. The bank had already reported a 12.82% drop in first-half profits.Despite this, the BRVM-listed lender (BRVM: BOAB) will propose a dividend of 468 FCFA ($0.77) per share, up 32.6% from 353 FCFA ($0.58) in 2023. The total dividend budget will be 19.99 billion FCFA ($32.96 million), exceeding net income and requiring 349.4 million FCFA ($577,000) from reserves.

BOA Benin’s decision to uphold its dividend policy reflects a shareholder retention strategy, even as market volatility and economic uncertainty weigh on earnings. The stock, currently priced at 4,030 FCFA ($6.64), remains attractive, gaining 9.36% year-to-date and 112.11% over five years. With a P/E ratio of 8.33, it trades slightly above the financial sector average, indicating investor confidence. However, the elevated beta of 1.33 signals higher sensitivity to market swings, which could affect investor sentiment. As peer institutions like BICC prepare to list, BOA Benin’s generous dividend strategy could support stock performance—but continued reserve use may raise concerns about long-term reinvestment capacity.

Enza Raises $6M to Provide Digital Payment Infrastructure in Africa

Dubai-based startup Enza, founded by ex-Network International executives Hany Fekry and Hamish Houston, aims to redefine financial infrastructure in Africa. Launched in January 2023, Enza has raised $6 million in seed funding led by Algebra Ventures and Quona Capital.Enza offers payment infrastructure for banks and fintech, covering issuance and acceptance. The platform integrates local and global card schemes, real-time payments, wallets, and QR codes, targeting underserved small businesses in Egypt, Nigeria, and South Africa. With over 10 million monthly contracted transactions across six African markets, Enza charges banks on a per-transaction model. Volumes are growing 35–40% month over month.Unlike their former employer Network International, which focused heavily on merchant acquiring, Enza is building infrastructure for banks to regain market share from fintechs. The startup supports banks with compliance, transparency, and expanded payment options, aiming for 30–40 strategic partnerships rather than scale.

Enza enters a competitive fintech space with a distinct strategy: empowering banks to compete by offering infrastructure that connects payment systems, enables broader product layers, and provides visibility across the transaction chain. As Africa’s digital economy grows, banks and fintech increasingly need unified platforms that support everything from cards to mobile wallets to real-time payments. Enza’s model of enabling both sides of the transaction and focusing on quality relationships gives it a strong foundation for scaling sustainably across the continent.

Cascador Launches $2M Fund to Back Nigerian Entrepreneurs

Cascador, a Nigerian accelerator for mid-stage entrepreneurs, has launched the Catalytic Fund, a $2 million annual initiative to provide targeted capital to its alumni network. The fund seeks to close the persistent funding gap for growth-stage businesses in Nigeria that are viable but often overlooked by traditional investors.Since its founding in 2019, Cascador has supported over 60 entrepreneurs who have collectively raised more than $55 million in funding. The new fund will focus on companies creating jobs, delivering social impact, and serving underserved communities.Applications opened on February 14, with a Pitch Day set for May 14, 2025. Finalists will be evaluated by an investment committee on business viability, impact, and financial health. Sterling Bank will provide blended financing under flexible repayment structures tailored to cash flows, while NSIA and the Development Bank of Nigeria will sponsor innovation prizes worth $10,000 and $5,000, respectively.

The Catalytic Fund marks a shift in early-stage capital deployment in Nigeria, prioritizing long-term impact over short-term profit. By offering flexible, non-extractive financing and leveraging local banking partners, Cascador is building a sustainable pipeline of investable companies with measurable social returns. The fund’s structure—blending grants, loans, and catalytic capital—could become a blueprint for supporting mid-stage entrepreneurs in emerging markets who are too advanced for seed-stage grants but still too early for commercial investors.

Egyptian economy posts strongest growth since 2022

Egypt’s economy grew 4.3% year-on-year in the fourth quarter of 2024, its fastest pace since Q3 2022, according to the Ministry of Planning, Economic Development and International Cooperation. The figure marks a sharp rebound from the 2.3% growth recorded in the same quarter a year earlier.The acceleration was supported by increased foreign inflows and a pivot toward boosting domestic production and exports. The government said recent economic reforms and support from international partners played a key role in stabilizing macroeconomic conditions and unlocking investment.The growth comes after Egypt faced years of pressure from rising inflation, a currency crisis, and declining foreign reserves. Although challenges remain, authorities are now targeting improved growth momentum heading into 2025.

Egypt’s recovery follows a series of moves to restore investor confidence. In 2024, the country secured a multibillion-dollar package of support from Gulf allies, the IMF, and the EU, easing pressure on reserves and the currency. The central bank also moved toward a more flexible exchange rate regime, attracting new capital and improving access to hard currency. Industries such as manufacturing and exports gained traction as the government emphasized import substitution and local value chains. Egypt also approved major energy, logistics, and infrastructure investments, aiming to boost employment and reduce the trade deficit. While inflation remains elevated and debt levels are high, the fourth quarter growth rate signals renewed momentum. The government targets 5% GDP growth for FY2025. Sustained improvement will depend on continued reform execution, political stability, and global commodity trends.

Bank of Africa Senegalese Unit Profit Jumps 17% to $33M

Bank of Africa Senegal (BRVM: BOAS) reported a net profit of 19.98 billion CFA francs ($32.9 million) in 2024, up 17% from 17.02 billion CFA francs ($28.1 million) in 2023. Operating income rose to 49.7 billion CFA francs ($81.9 million), up from 45.4 billion CFA francs ($74.8 million) the previous year.Total assets increased to 783.2 billion CFA francs ($1.29 billion), up 3.3%. Customer loans rose to 402.5 billion CFA francs ($663.3 million), while deposits grew to 585.8 billion CFA francs ($965.7 million), both recording modest annual gains. Shareholders’ equity rose to 88.6 billion CFA francs ($146.1 million).BOA Senegal’s stock (BOAS) gained 28% over the past year, with a 25.4% increase year-to-date. It rose 14% over the last week, 40.8% in the last month, and 23.4% in the past quarter. The bank is part of the Bank of Africa Group, which operates in 18 countries.

BOA Senegal maintained steady profitability in 2024 as it expanded both its loan book and deposit base. The 17% increase in net profit was supported by higher net interest income and stable operating costs, with the cost-to-income ratio remaining just below 40%. Equity rose by 15.7%, bolstered by retained earnings and capital injections. The bank also reduced provisions by 95%, indicating stronger credit quality or improved collection. BOA Senegal’s strong stock performance reflects investor optimism. The 40.8% gain over the past month and 28% over one year outperformed the broader BRVM financial sector. The bank’s ability to maintain growth in a competitive and regulated environment shows operational discipline. With Senegal’s economy expanding and investment linked to offshore gas and infrastructure projects, the outlook for credit demand is positive. Maintaining asset quality and cost control will be critical as BOA Senegal seeks to grow its market share and improve return on equity.

Ivorian Rubber Maker Saph Triples Profit to $31M in 2024

Société Africaine de Plantations d’Hévéas (SAPH) reported a net profit of 18.8 billion CFA francs ($31 million) for 2024, a 186% increase from 6.6 billion CFA francs ($10.9 million) in 2023. Revenue rose 17% to 279.4 billion CFA francs ($460.6 million), from 240.6 billion CFA francs ($396.6 million) the previous year.Operating profit climbed to 29.5 billion CFA francs ($48.6 million), up from 7.7 billion CFA francs ($12.7 million), while EBITDA reached 40.1 billion CFA francs ($66.1 million). Cash flow from operations was 4.2 billion CFA francs ($6.9 million), and year-end cash stood at 11.6 billion CFA francs ($19.1 million).The company (BRVM: SPHC) maintained its dividend payout, distributing 10.8 billion CFA francs ($17.8 million). SAPH’s stock rose 97.9% over the past year and is up 14.7% year-to-date. It gained 4.4% in the last week, 9.2% over the past month, and 39.7% in the last six months.

SAPH delivered a strong performance in 2024, tripling its profit as production efficiency improved and global rubber demand stabilized. Revenue growth of 17%, combined with tighter cost control and reduced external service expenses, supported margin expansion. The 186% surge in net profit marks a major turnaround after a weak 2023. The company maintained a strong dividend payout while reducing debt and generating positive free cash flow. SAPH also saw a return to profitability in its ordinary activities, signaling stable core operations. Investor sentiment followed. The SPHC stock rose nearly 98% year-on-year, outperforming most BRVM-listed industrial stocks. Gains of 14.7% year-to-date and 39.7% over six months show continued momentum. The company’s capital base and infrastructure investments position it for long-term growth. However, performance will depend on global rubber prices, cost discipline, and regional logistics. SAPH’s 2024 results show resilience and improved investor confidence in a recovering export-oriented sector.

Morocco’s Bank of Africa Group Profit Hits Record $312M in 2024

Morocco-based Bank of Africa Group reported a 29% increase in net profit for 2024, reaching 3.4 billion dirhams ($353 million), up from 2.7 billion dirhams in 2023. The bank said growth came from improved performance in Morocco and sub-Saharan Africa, which contributed 49% and 45% of total profit, respectively.Net banking income rose 10% to 18.7 billion dirhams, supported by a 6% rise in interest margin and 4% growth in commission income. Operating income increased 23% to 10 billion dirhams, while the consolidated operating ratio improved to 52%.Customer loans excluding resales increased 2% to 223.2 billion dirhams, and customer deposits (excluding repos) rose 8% to 256 billion dirhams. Total assets grew 9%. The cost of risk rose 15% to 3.2 billion dirhams. Equity rose 9%, while the debt coverage ratio improved to 64% from 62.3%. The bank expects to maintain growth momentum across key markets in 2025.

Bank of Africa’s performance in 2024 reflects balanced contributions from Morocco and sub-Saharan Africa. Net banking income growth and improved cost controls helped offset a rise in provisions. The 15% increase in the cost of risk to 3.2 billion dirhams signals a more cautious lending approach amid economic pressures in certain markets. The 2% increase in customer loans and 8% growth in deposits suggest continued demand for credit and improved liquidity. Asset growth of 9% and an improved debt coverage ratio show enhanced balance sheet strength. The group continues to rely on its diversified presence across high-growth African markets and its home base in Morocco. With 94% of profits coming from Morocco and sub-Saharan Africa, the group’s geographic focus remains centered on regional banking expansion. Bank of Africa is expected to focus on digital expansion, loan book quality, and regional synergies as it targets further growth across its markets in 2025.

Nigeria’s Payhippo Raises $4M to Fund Clean Energy After Rivy Rebrand

Nigerian fintech startup Payhippo has rebranded as Rivy and raised $4 million in a pre-Series A round to scale its clean energy financing business. The funding is split evenly between $2 million in equity and $2 million in local-currency debt.EchoVC and Shell’s All On co-led the equity round. EchoVC invested through its $2.5 million Eco fund, which backs climate and mobility ventures. The debt came from unnamed Nigerian debt providers. Founded in 2019, Rivy originally focused on SME lending. It now operates a marketplace connecting over 250 solar vendors to businesses, offering financing to spread solar system costs over time.CEO Dami Olawoye said loan demand has grown since the 2023 pivot to energy financing. Rivy disbursed $2 million in loans in 2024 and is growing its monthly loan book at 15%. Loan terms start at a 12% rate for three months, with a 30% down payment required.

Rivy’s pivot reflects a broader trend among African fintechs moving beyond traditional credit. Like Branch in Kenya or Aella in Nigeria, Rivy is using its lending infrastructure to solve deeper problems—in this case, power access. With electricity costs rising and diesel fuel prices volatile, solar energy is gaining traction. But upfront costs remain a barrier. Rivy’s model helps small businesses access solar with flexible payment terms, while also supporting solar vendors who need working capital. By financing both end users and micro-grid projects, Rivy positions itself in both enterprise and community energy segments. The model reduces power costs for users and offers stable loan performance—CEO Olawoye claims a non-performing loan ratio below 1%.

Russia’s AvtoVAZ Eyes Local Assembly in Nigeria With New Hub

AvtoVAZ, Russia’s largest automaker and majority state-owned, will enter Nigeria with plans to establish a spare parts hub and service center at Lagos’s Lekki Free Trade Zone by the end of 2025. The move marks the company’s biggest expansion in West Africa’s largest economy.The maker of Lada vehicles is also in talks with the Nigerian government to set up a local assembly plant and launch compressed natural gas (CNG) vehicle conversions through a partnership with a Russian engineering firm. The expansion comes as Chinese automakers grow their market share in Russia, while AvtoVAZ looks abroad to sustain growth. Nigeria’s vehicle demand exceeds 700,000 units annually, but local production covers just 14,000.AvtoVAZ aims to benefit from import duty exemptions on CNG vehicles. Some Lada units will arrive factory-fitted with gas-powered engines, while others will be converted locally. The company has previously operated in Egypt and Ethiopia and now seeks to reestablish its African footprint.

AvtoVAZ’s entry into Nigeria signals Russia’s renewed interest in African markets. With demand for new vehicles constrained by affordability and limited financing, Nigeria’s car market is dominated by used imports. However, the government’s push for local assembly and alternative fuel solutions like CNG presents new opportunities. AvtoVAZ is positioning itself to benefit from lower import duties and Nigeria’s growing need for cheaper transport alternatives. If successful, it could challenge Japanese and South Korean brands that dominate both the new and used car segments. Toyota alone holds a 16.1% market share. As foreign automakers re-enter Russia post-conflict, AvtoVAZ is diversifying to reduce its reliance on the home market. Nigeria offers access to a large consumer base, skilled labor, and incentives under the automotive policy. Still, regulatory uncertainty, infrastructure gaps, and competition from players like Innoson, Coscharis, and PAN will pose obstacles. AvtoVAZ’s success may depend on pricing, after-sales service, and navigating Nigeria’s complex market environment.

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.