How to Invest in African Markets? Analysis of 5 BRVM Stocks

Hello everyone!

The team is finally back after an incredible marathon in Kenya, then in Paris for VivaTech, where we joined the Ivorian delegation led by the Ministry of Digital Transition and Digital Innovation.

It was a great pleasure to meet our users and investors from around the world who are eager to capture the growth of African markets, especially francophone markets.

One question kept coming up again and again: What is the real return of the BRVM? In concrete terms, what can investors gain from it?

Before we begin, please note that this is not financial advice.

To answer this as transparently as possible, we are going to analyze the real portfolio of one of our Daba Pro subscribers over the last three years.

To understand what is happening, we need to take a step back.

In just a few years, the market capitalization of the BRVM has grown from nearly $15 billion to more than $30 billion. This historic rise has pushed the BRVM to sixth place among the largest stock exchanges on the African continent, just behind major exchanges such as the Egyptian Exchange, which currently stands at about $75 billion in market capitalization.

Let’s be clear and realistic: not every listed stock has experienced such strong growth. The market moves in cycles, and the past few years have been particularly exceptional and favorable for investors.

This does not mean the market will deliver these returns every year. But when you invest with a long-term vision in strong companies, you generally come out ahead.

At Daba, we believe this growth is far from over.

For this simulation, we will focus only on the increase in share value, without including transaction fees or dividends paid out.

Let’s imagine an investment of €2,500, or about 1.64 million FCFA, split equally in €500 portions, or about 328,000 FCFA, across five market leaders.

First: Ecobank Côte d’Ivoire. Three years ago, the stock was worth 5,285 FCFA. Today, it trades at around 17,270 FCFA. A €500 investment would have turned into €1,633, or about 1,071,500 FCFA.

Second: SMB Côte d’Ivoire, Société Multinationale de Bitumes. One share cost 7,800 FCFA. Today, it trades at 17,735 FCFA. A €500 investment would have become €1,138, or about 746,450 FCFA.

Third: CIE. A key player in the energy sector, the stock rose from 2,100 FCFA to 5,300 FCFA. A €500 investment would now be worth €1,261, or about 827,500 FCFA.

Fourth: SAPH. In the rubber sector, the stock rose from 3,200 FCFA to 7,675 FCFA. A €500 investment would now be worth €1,199, or about 786,600 FCFA.

Fifth: Sonatel. The telecoms giant moved from 15,400 FCFA to 29,500 FCFA per share. A €500 investment would have become €957, or about 628,100 FCFA.

In total, an initial €2,500 investment would have become €6,188, or more than 4 million FCFA, in three years.

That means the investment multiplied by nearly 2.5.

Access to this growth is no longer a secret reserved for an elite.

Whether you are in the diaspora or on the continent, the Daba app allows you to invest in these companies in just a few clicks.

Before we go, we want to open the debate.

Market rumors are intensifying behind the scenes of West African finance: a major new initial public offering is being prepared and could soon arrive on the BRVM.

Do you know which company it is?

And in your opinion, which companies will lead market growth over the next three years?