JANUARY 16, 2023
3 min Read
Investors update: January 16 2023
Africa sees major increase in finance app installs
- There was a significant increase in the installation of finance apps across Africa between 2021 and 2022, per a report by AppsFlyer and Google.
- The study analyzed more than 140 million installs, across 3,000 finance apps, and found that installs across the continent grew 25% during that period.
- Ghana, Nigeria, Kenya, and South Africa were the main contributors to this rise in finance app installs. The former largely bolstered this by a massive 200%; followed by Nigeria, which saw an increase of 33%.
Mobile apps are transforming finance in Africa as startups capitalize on the continent’s limited banking access providing its people with platforms to access financial services. And based on the Google-AppsFlyer report, Africans are increasingly turning to technology to manage finances, navigate economic uncertainty, and move toward financial freedom, a massive boost for an already booming local fintech industry.
Bank, telco, cement stocks up in bullish NGX run
- Last week, the combined market capitalization of stocks worth over 1 trillion naira on the Nigerian Exchange appreciated by 2.89%, led by increased share prices of BUA Cement, Dangote Cement, and MTN.
- Similarly, the valuation of Nigeria’s tier-1 banks, otherwise known as FUGAZ, appreciated by 3.57% to close at N2.55 trillion ($5.5 billion) as investors gained a total of N88 billion.
- Meanwhile, The NGX All-Share Index and market cap gained 2.52% to close last week at 52,512.48 and N28.602 trillion, respectively.
The year has continued on a positive note for the Nigerian equities market as investors increase their buying pressure. Investment research analysts expect the positive momentum recorded in the past three years on the NGX to be sustained in 2023, albeit at a moderate pace. Also important is the upcoming general election, which is expected to influence investors’ sentiments toward the equities market, particularly considering there will be a presidential change.
Kenya-based Kwara extends seed round by $3m
- Kwara, a Kenyan fintech digitizing credit unions (saccos), more than doubled its client base last year and is eyeing enormous growth in the coming years after raising a $3 million seed extension.
- The startup also recently signed an exclusive digital solutions distribution agreement with the Kenya Union of Savings & Credit Cooperatives (Kuscco), the national umbrella body representing saccos.
- Following the Kuscco partnership, Kwara said it has gained connections to a pool of over 4,000 saccos for its banking-as-a-service offering.
Credit unions are formed by people with a common interest or members of an industry, like farmers or teachers, who buy shares in the institution, save money and take loans. They are popular, especially in developing regions, due to their low-interest-rate loans and ease of accessing credit when compared to conventional banks and thus play a crucial role in helping community members access a wide range of financial services and opportunities.