Weekly Investor Update (March-WeekThree-2025)

12 min Read March 21, 2025 at 5:00 PM UTC

Tuesday

Kenya’s Leta Raises $5M to Scale AI-Powered Logistics Platform

Leta, a Nairobi-based logistics software startup, has raised $5 million in seed funding to expand its AI-powered platform that optimizes delivery routes, tracks shipments in real-time, and helps businesses streamline logistics operations. The funding round was led by European VC firm Speedinvest, with additional backing from Google’s Africa Investment Fund and Equator, an Africa-focused climate tech fund.Leta’s platform is designed to reduce costs and improve efficiency in logistics, which currently accounts for a significant portion of product prices in Africa. By integrating with businesses’ ERP, POS, and OMS systems, it automates tasks such as manifest creation and dispatch planning, ensuring that the most efficient vehicle is used for each order. It also helps reduce the number of vehicles needed for distribution by optimizing routes and load methods such as FIFO (first-in, first-out) and LIFO (last-in, first-out).The startup has already seen impressive growth, expanding operations across five African markets—Kenya, Nigeria, Uganda, Zambia, and Zimbabwe—and working with major clients like KFC and Diageo. Leta has increased the number of deliveries from 20,000 tons to 150,000 tons and is now managing 7,400 vehicles.

Leta’s growth highlights the potential of AI-powered logistics platforms to address the inefficiencies in Africa’s supply chain. With high transportation costs and reliance on manual logistics, startups like Leta are filling a critical gap by offering cost-saving and efficiency-boosting solutions. Its approach contrasts with earlier logistics startups that focused on asset ownership, an often unsustainable model in the region. Leta’s success lies in its software-first model, which helps businesses optimize existing fleets rather than owning assets. This has allowed it to scale quickly without the burdens of managing physical assets, while simultaneously improving delivery efficiency and cutting costs. Its ability to integrate financial services into the platform further enhances its value proposition, positioning the company for long-term growth across Africa and the Middle East.

Nigeria’s Inflation Cools For Second Month After CPI Rebase

Nigeria’s annual headline inflation eased to 23.18% in February, marking a decline from 31.7% a year earlier, according to data released by the National Bureau of Statistics (NBS). The drop followed a rebase of the Consumer Price Index (CPI), reflecting changes in consumption patterns.Inflation was down 1.3 percentage points from January’s rate of 24.48%. Food inflation, a significant driver of overall inflation, stood at 23.51% in February, compared to 26.08% in January. The drop marks the first significant slowdown since the NBS rebased the CPI, setting 2024 as the new base year instead of 2009.This change led to a sharp decline in inflation from 34.80% in December to 24.48% in January, the largest drop in over a decade. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) maintained the interest rate at 27.5% after six hikes in 2024, citing the easing of inflationary pressures.

The decline in diesel and petrol prices contributed to easing inflation. Diesel prices dropped by 33%, from around ₦1,500/liter to ₦1,000/liter, largely due to increased production from the Dangote Refinery. This cascaded effect on the broader economy, lowering costs for consumers and businesses. Petrol prices, however, remained relatively stable at ₦800/liter. The slowdown in fuel prices helped reduce transportation and production costs, lowering the pressure on food prices and overall inflation. Despite these improvements, analysts warn that inflation could accelerate again starting in April due to global economic factors. Some predict an average inflation rate of 31% for 2025, citing external pressures, similar to the economic impact of the 2020 pandemic on Nigeria.

CWG, Chams Report Record Profits Amid Nigeria’s IT Infrastructure Boom

For the first time in 13 years, Computer Warehouse Group (CWG) and Chams Holding Company have posted billion-naira profits, driven by Nigerian banks upgrading their IT systems and telecom companies expanding SIM card production. Their combined after-tax profit surged 395% from ₦983.7 million in 2023 to ₦4.88 billion in 2024, as seen in their latest unaudited financial reports.Chams, known for identity management and transactional solutions, saw its revenue nearly triple from its Card Centre subsidiary to ₦6.48 billion. The growth came from partnerships, SIM card production for telecom companies, and a 37.7% rise in print solutions sales. “Our upscaling efforts are beginning to pay off,” said a Chams spokesperson, highlighting the company’s expansion into cross-border payments.CWG, which provides IT services to telcos and banks, experienced a 524% jump in profits to ₦3.59 billion, driven by increased demand for core banking systems as banks upgraded their IT infrastructure. Experts linked CWG’s 20-year partnership with Infosys, supplying Finacle software, to a 400% increase in software revenue, reaching ₦19.1 billion.

The impressive profit growth of CWG and Chams highlights the increasing demand for IT infrastructure and services in Nigeria’s financial sector. As banks push towards digital transformation, local providers like CWG and Chams are seeing substantial growth from providing core banking applications, identity management solutions, and network infrastructure. With the continued upgrade of IT systems, these companies are well-positioned to tap into Nigeria’s expanding digital economy. However, competition from global IT giants offering comprehensive solutions presents an ongoing challenge. To stay competitive, local players must evolve, leveraging emerging technologies such as cloud computing, artificial intelligence, and cybersecurity, which are becoming critical for banks’ digital strategies. The success of CWG and Chams may depend on their ability to stay ahead of these global players and continue meeting the evolving needs of their clients.

Old Mutual Posts Highest Profit Since 2019 on Demand Growth

Old Mutual Group has reported its highest profit since 2019, driven by strong demand for its short-term insurance and wealth management products in South Africa. The Johannesburg-based company’s adjusted headline earnings rose 14% to R6.69 billion ($370 million), exceeding the R6.6 billion forecast by analysts.The company, along with rivals like Sanlam, is benefiting from a modest economic recovery in South Africa, bolstered by improved performance at the state-run power utility and government-backed infrastructure projects, which are spurring consumer demand.Headline earnings per share increased by 17%, boosted by Old Mutual’s R1 billion share repurchase program in 2024, which helped reduce the weighted average number of shares. The company also proposed a final dividend of 52 cents per share, bringing the total payout to 86 cents per share, slightly below the consensus estimate of 89 cents.

Old Mutual’s strong performance reflects a steady recovery in South Africa’s economy, benefiting from a growing demand for financial services amid government infrastructure initiatives. The company’s successful share buyback program also helped boost earnings per share. As it diversifies into banking with OM Bank, the challenge will be managing competition in the crowded market, particularly as the new bank targets affluent customers. The firm’s strategy suggests confidence in South Africa’s long-term growth potential, though competition from established players will remain a significant hurdle.

NSIA Banque, Orabank Secure $21M for SMEs in Francophone West Africa

NSIA Banque CI and Orabank CI are set to securitize receivables worth 12.65 billion FCFA ($20.92 million) to raise liquidity for small and medium-sized enterprises (SMEs) in the WAEMU region. The banks aim to use the proceeds to finance SME projects and small and medium industries (SMIs) within the zone.This deal is part of the Keur Samba program, launched by BOAD Titrisation in March 2025. It marks the first multi-seller securitization operation within the WAEMU region and will help finance SMEs and SMIs in Côte d’Ivoire and other WAEMU countries.NSIA Banque CIand Orabank CI are the first Ivorian banks to participate in this program, aimed at improving financing access for SMEs.Through this process, the banks will gain immediate liquidity, which will be used to support SMEs’ financing needs. The funds raised will allow the banks to increase their lending capacities and reduce borrower default risks. The program aims to improve financial access and diversify business opportunities within the region.

The Keur Samba program presents a new model for SME financing in WAEMU, helping banks quickly access funds and increase their support for SMEs. By securitizing receivables, the two banks can better manage risks while addressing the growing demand for financing in the region. The success of this initiative could inspire similar programs across other WAEMU countries, fostering regional integration and improving access to finance. It also highlights the increasing role of securitization in emerging markets, where it can help boost liquidity and provide more sustainable financing to SMEs, a key driver of economic growth.

Ethiopian Airlines Gets AfDB Backing to Build Africa’s Largest Airport

Ethiopian Airlines has partnered with the African Development Bank (AfDB) to develop a new airport near Addis Ababa. The Bishoftu International Airport project, valued at $7.8 billion, will increase Ethiopia’s passenger capacity from 17 million to over 60 million annually by 2040. This will make it the largest airport in Africa upon completion.The partnership is expected to address the growing demand for air travel and cargo services, which the current Bole International Airport can no longer accommodate. The new airport, located about 40 kilometers southeast of Addis Ababa, will handle more than 100 million passengers annually once fully operational.In August 2024, Ethiopian Airlines signed a memorandum of understanding with Dubai-based consulting firm Dar to design the new facility. The project is slated for completion in five years and is expected to significantly enhance Ethiopia’s economic development while boosting Africa’s global air connectivity. The mega airport will reinforce Africa’s position as a key aviation hub.

The Bishoftu International Airport project underscores the growing demand for air travel in Africa, particularly in East Africa, which is becoming a key player in global aviation. Ethiopian Airlines’ initiative highlights the continent’s ambitions to develop world-class infrastructure that can handle rising passenger and cargo volumes. With the support of the African Development Bank, this mega-airport will not only facilitate trade and tourism but also contribute to Ethiopia’s broader economic growth and Africa’s regional integration. This development signals a shift toward stronger intra-African connectivity and greater investment in the continent’s aviation infrastructure.

New $1.3M Fund to Help Train African Software Engineers

Adeniyi Abiodun, co-founder of blockchain infrastructure firm Mysten Labs, and his wife, Gloria Abiodun, have launched a $1.3 million endowment fund to address Africa’s software engineering talent gap. The five-year fund, managed by Inurere Foundation, will provide student loans for aspiring software engineers enrolled in Semicolon Africa’s Techpreneurship program.The fund will offer ₦5 million ($3,300) loans at a 12% annual interest rate. Loan repayments will be recycled to support new students, ensuring long-term sustainability. Meedl Africa, a fintech firm, will facilitate the loans, while Semicolon Africa, which has trained over 800 engineers, will help place graduates into jobs.The initiative aims to build Africa’s blockchain talent base. Abiodun, a former engineer at JP Morgan, HSBC, Oracle, and Meta’s Novi project, sees the fund as a way to develop Nigerian software engineers in blockchain and AI.

Africa’s tech ecosystem is growing rapidly, but a shortage of skilled software engineers remains a challenge. With the digital economy projected to reach $712 billion by 2050, initiatives like the Abioduns’ fund provide a sustainable model for talent development. By blending endowment funds with commercial financing, this approach could make tech education more accessible, attracting further investments in workforce development. If more private individuals and companies adopt similar models, Africa could strengthen its position as a major player in global tech innovation.

BRVM-Listed Sicable Annual Profit Declines on Higher Taxes

Société Ivoirienne de Câbles (CABC) reported a solid performance for 2024, with a 7% increase in overall revenue to 19.125 million FCFA (around $31.8 million). The company saw strong sales in aluminum cables, up 19%, but faced challenges in export markets, where sales dropped by 35%.Operating profit grew to 1.785 million FCFA ($2.96 million), a slight increase from the previous year. However, its net income dropped to 1.225 million FCFA ($2.03 million), down from 1.431 million FCFA ($2.38 million) in 2023. The decrease was attributed to higher taxes and a reduction in provisions for bad debts.Sicable also made notable investments, with capital expenditures rising to 159 million FCFA ($264,000), driven by new production and transport equipment. The company’s working capital showed a slight decline, indicating tighter liquidity management amid external pressures. Looking ahead to 2025, Sicable plans to focus on securing raw material supplies and expanding into new markets, aiming for 20% of its margins to come from these areas. The stock (CABC) is up 19% in the past week.

Sicable’s 2024 results reflect the growing challenges in the Ivorian market, such as rising costs and competition, but the company’s performance is improving. Its efforts in innovation and expanding into new markets, including renewable energy and exports, are critical to future growth. The decrease in net income, despite strong revenue growth, highlights the impact of external factors like taxes and currency fluctuations. The company’s strategic focus on strengthening its supply chain and improving operational efficiency will be key to maintaining profitability in 2025 and beyond.

Nigeria Sees Largest Drop in Cash Transactions on Digital Payment Boom

Nigeria has seen the sharpest decline in cash transactions among seven major economies over the past decade, with cash usage dropping by 59% from 2014 to 2024, according to a report by Worldpay. The decline surpasses that of the Philippines (43%), Indonesia (44%), Mexico (41%), Japan (31%), Germany (24%), and Colombia (22%).The shift comes as digital payments in Nigeria reach record levels, driven by growing fintech-bank partnerships. The report, which examined 40 markets covering 88% of global GDP, projects Nigeria’s cash usage will drop further to 32% by 2030 as electronic payments continue to expand.The Central Bank of Nigeria’s 2023 naira redesign policy, intended to reduce cash hoarding and money laundering, accelerated the transition, causing a 29.2% drop in currency circulation to ₦982.1 billion ($1.63 billion) in early 2023. Fintech firms like OPay and PalmPay capitalized on the shift, stepping in as traditional banks struggled to handle surging online transactions.

Nigeria’s rapid digital transformation underscores its emergence as Africa’s fintech leader. Electronic transaction volume surged 1,514% between 2018 and 2024, reaching 11.3 billion, according to the Nigeria Inter-Bank Settlement System (NIBSS). Financial inclusion also improved from 56% in 2020 to 64% in 2023, with a central bank projection of 80% by 2026. With declining cash reliance, the country is setting a model for digital finance across the continent. The combination of fintech expansion, central bank policies, and increasing smartphone penetration reshapes Nigeria’s payment landscape. However, challenges remain, including infrastructure gaps and regulatory uncertainties. If momentum continues, Nigeria could redefine how financial transactions operate in Africa, bridging the gap between cash-based and fully digital economies.

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.