NOVEMBER 24, 2022
3 min Read
Investors update: November 24 2022
Nigeria’s top cement firms gain $1.5bn in market cap
- Dangote Cement, Lafarge, and BUA Cement, three major cement manufacturing firms on the Nigerian Exchange (NGX) recorded a combined gain of about N651 billion (around $1.5 billion) at the end of Wednesday’s trading.
- That saw them rank among gainers of the day despite economic headwinds and speculations that the latest interest rate hike by the Central Bank of Nigeria (CBN) might depress market appetite.
- The overall market closed with a gain of N710 billion in market capitalization, as bulls maintained their grip on the local bourse.
A decision by the Central Bank of Nigeria (CBN) to further increase the benchmark interest rate to 16.5% this week to tackle rising inflation was feared to potentially hurt a recovering equities market. This is because when interest rates rise, investors tend to navigate toward fixed-income securities like bonds and government bills. But the stock market has shown resilience, maintaining a bullish trend in the last couple of days.
Côte d’Ivoire’s Djamo raises $14m for West Africa expansion
- Djamo, an Ivorian fintech startup that offers financial services to the region’s unbanked and underbanked people, has just announced that it has raised $14 million in an equity round.
- This is presumably the most significant equity investment ever for a startup in Côte d’Ivoire. However, this is not the first investment support Djamo has received since its launch in 2020.
- The startup was the first from the region to get accepted into Y Combinator last year and also participated in the Visa Fintech Fast Track Program. It now plans to expand its services and presence to other new francophone African markets.
Riding the wave of the growing influence of online banking, Africa-focused neobanks have been attracting a significant share of fintech investment. In francophone Africa specifically, digital banks have enormous potential as fewer than 25% of adults have bank accounts but mobile money wallets reach more than 60% of the population. Also, Africa generally boasts a young and tech-savvy population. Startups like Djamo have thus moved to capture this opportunity with digital-first banking services, contributing to the booming fintech sector on the continent.
Binance’s Zhao flags possible $1 billion for distressed assets
- Cryptocurrency exchange Binance is aiming for a roughly $1 billion fund for the potential purchase of distressed assets in the digital sector.
- This is according to its Chief Executive Officer Changpeng Zhao, who hinted at the possibility of allocating even more funds in a recent interview.
- Zhao said earlier that there was significant interest from industry players in a recovery fund his company plans to launch to help cryptocurrency projects facing a liquidity squeeze, following the collapse of rival FTX.
The crypto market is teetering after the collapse of FTX, which is seeking Chapter 11 bankruptcy protection in the United States. Several crypto firms have been bracing for the fallout from the FTX collapse, with many counting their exposure to the exchange in millions. Major crypto player Genesis said last week it had suspended customer redemptions in its lending business, while BlockFi is reportedly preparing to file for bankruptcy.