Investors update: December 12, 2022

New platform links seven African capital markets

Highlights

• The African Exchanges Linkage Project (AELP) has launched an e-platform (The AELP Link), enabling seamless cross-border securities trading among seven African stock exchanges representing 2,000 companies with roughly $1.5 trillion market capitalization.
• The AELP Link Trading Platform unveiled on December 7, incorporates stock market integration, an order routing system, and market and order-book data sharing.  
• AELP is a joint initiative of the African Securities Exchanges Association (ASEA) and the African Development Bank.  Through a grant from Korea-Africa Economic Cooperation Trust Fund (KOAFEC), the Bank is funding ASEA’s phased rollout of the project.

Source: ABC

Our Takeaway

Needless to say that Africa stands to gain a lot from the potential regional capital markets, which would in no small measure deepen the capital pool available to both private and public sector players through the cross-border listing, issuance, and trading of financial securities across the region. However, none of these can be achieved without the readiness of all concerned—member states. The AELP Trading Link went live on November 18 following a beta testing period and is expected to connect seven stock exchanges across 14 African countries in the first phase.

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Taeillo raises $2.5m in new deal with Aruwa Capital

Highlights

• Taeillo, a Nigerian-based African furniture brand, has raised $2.5 million in equity funding to expand the delivery of innovative, affordable, and locally manufactured furniture to homes and businesses across the continent.
• Aruwa Capital, a growth equity fund investment firm, led the funding round and will contribute the entire $2.5 million investment, joining the startup’s other existing investors.
• With this new funding, Taeillo hopes to enhance the client experience and promote continental growth. It also plans to launch new products, provide better services and deploy resources to drive expansion into more markets like East Africa and the diaspora.

Source: TechNext

Our Takeaway

Nigeria’s Taeillo is a market leader when it comes to startups or companies innovating around issues relating to time, quality, and cost of buying furniture via its online e-commerce store. For Aruwa, meanwhile, investing in Taeillo aligns with one of its investment objectives: backing women founded- and led startups. Last week, the three-year-old growth equity firm closed a $20 million+ fund from Visa Foundation and other LPs to invest in 10 startups across several sectors. 

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Nigerian equities market records 1.51% weekly growth

Highlights

• The Nigerian equities market closed bullish during the week as the All-Share Index appreciated by 1.51% during the week ended December 9. This followed the 1.26% growth recorded in the previous week.
• The benchmark index appreciated from 48,154.65 points in the previous week to close the week at 48,881.93 index points, while the market capitalization followed suit to close at N26.625 trillion.
• That brought the month-to-date performance of the Nigerian stock market to 2.56% and a year-to-date gain of 14.43% as of Friday.

Source: Nairametrics

Our Takeaway

BUA Cement Plc, one of the major Cement manufacturing firms listed on the industrial goods sub-sector of the Nigerian Exchange Group Plc (NGX), recorded a gain of N498.006 billion at the end of weekly trading to lead the gainers’ chart of the week. Meanwhile, The combined market capitalization of stocks worth over one trillion (SWOOTs) appreciated by 2.15% to close at N19.46 trillion from N19.05 trillion the previous week, reflecting a gain of 408.79 billion. This classification includes Airtel Africa, BUA Cement, Dangote Cement, BUA foods, and MTNN Plc.