A fresh record for BRVM stocks

Buoyed by impressive financials, equities on the regional exchange have been on an upward trend, hitting levels not seen in years + you can still get free tickets to GITEX Africa.

Author

Anthony Miclet
May 29, 2024

Good Morning,

Stripe-owned Nigerian fintech Paystack led a group of other high-profile names including PiggyVest, Ventures Platform, and P1 in acquiring Brass—a digital business banking platform that’s struggled for months. 

While post-acquisition plans are unclear, the consolidation reflects a maturing fintech ecosystem in Africa’s biggest economy where growth-stage players act as venture builders, and rescuers when need be.

In other top stories for today:

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Exciting news! Our co-founders Boum III Jr & Anthony Miclet are at the ongoing GITEX AFRICA 2024 in Marrakesh and we have 50 free visitor passes to give out. 

If you're in Morocco from May 29th to 31st, you can attend this premier tech event at no cost, courtesy of Daba.

To claim your free pass, simply CLICK HERE to fill out a quick form or tap the button below. We'll send your pass a few days before the event. 

Don't miss this amazing opportunity to join the tech innovators at GITEX Africa!

Here are last week’s top stories

Fresh record

BRVM main index hits 6-year high on bellwether rallies

The BRVM equity market continued its upward trend with the benchmark Composite index rising 1.96% to 224.44 points last Friday, a level not seen in six years while market cap grew by 1.96% to 8.4 trillion FCFA (c.$14 billion), a historic high.

Gold dipped amid the modest rebound of the US dollar driven by hawkish remarks from several US Federal Reserve officials and stronger-than-expected US economic data, diminishing expectations of the Fed rate cut in September.

For cryptos, bitcoin is hovering around $68,000 while the imminent launch of spot Ether ETFs has strengthened sentiments sending its price closer to $4,000. Crude oil prices gained nearly 3% on Tuesday, amid expectations of stronger fuel demand in the US and ahead of a key OPEC meeting on Sunday.

Striking gold

Canada's Montage discovers largest bullion deposit in Ivory Coast

Canadian mining company Montage Gold hit the jackpot with a mammoth gold discovery at its Koné project in Ivory Coast. Experts estimate the deposit holds a staggering 5m ounces (155.5 tons) of the precious metal.

Plans are underway to construct the mine, which is projected to operate for around 20 years. Construction is slated to kick off in late 2024, with a $663m initial investment for the processing plant.

With an annual processing capacity of 11 million tonnes, the Koné mine is poised to become West Africa's third-largest, trailing only giants in Burkina Faso and Guinea.

Digital allure

Increasing investments pour into Africa’s digital growth opportunities

Asia’s richest man, Mukesh Ambani, is entering Africa’s high-growth telecom market with a new venture—Radisys—that will supply essential network infrastructure, applications, and smartphones for Ghana-based Next-Gen InfraCo (NGIC).

Raxio Group, the data center company, has opened its first facility in Mozambique—part of a $290m plan to build 10 data centers in Africa's rapidly growing and lucrative digital infrastructure market.

And lastly, Google announced the first-ever fiber optic cable project connecting Africa and Australia. Starting in Kenya, Umoja will cut across several countries and is part of its Africa Connect initiative, which also includes Equiano—a subsea cable launched in 2019 to link Africa and Europe.

Headline roundup

A summary of the major business, tech, and finance headlines of the past week.

Macro & Markets

VC Funding & Startups

Other Deals & Expansion

Funds & Accelerators

Startup Opportunities

Discover funding and accelerator opportunities to boost your startup's growth.

Our insight for the week

Get more context into events shaping Africa’s economic landscape.

The allure of Africa’s digital infrastructure market: Over the past week, several significant announcements underscored the allure of Africa's rapidly growing digital infrastructure market. 

Headlines included Asia's richest man, Mukesh Ambani, entering the African telecom market with a new venture supplying network infrastructure and devices.

Data center company Raxio Group unveiled plans for a $290 million investment to build 10 data centers across the continent, and Google announced the Umoja fiber optic cable project connecting Africa and Australia.

The allure of Africa's digital market lies in its vast population of over 1.3 billion people, with a rapidly growing middle class and increasing internet penetration rates. H

However, broadband coverage remains lacking, especially in remote areas, presenting significant expansion opportunities. 

Africans are also increasingly using the internet, and businesses are embracing cloud computing, driving demand for digital infrastructure. 

Yet, most of the continent's data is housed abroad due to a lack of colocation data centers on the continent.

The announcements highlight the growing demand for digital infrastructure, fueled by factors such as a young and tech-savvy population, urbanization, and the rise of e-commerce and fintech.

With internet penetration rates below 40% in many African countries, the growth potential is immense.

As an individual looking to invest in this trend, you might be wondering how to go about it.

For one, investing in publicly listed telecom companies is an attractive opportunity within this sector due to the crucial role of enabling connectivity and digital transformation. 

Mobile network operators like Sonatel, Onatel, and Orange, listed on the BRVM (Bourse Régionale des Valeurs Mobilières), and ICT stocks like CWG on the NGX (Nigerian Exchange) are just some names.

As investments in digital infrastructure and services grow and more demand is met, their stocks could potentially offer attractive returns for investors seeking exposure to Africa's digital revolution.

Africa's digital transformation is fast accelerating, driven by demographic tailwinds and socioeconomic factors, and the demand for reliable digital infrastructure will only continue to rise. 

Investing in telecom stocks provides retail investors with an opportunity to participate in this growth story and potentially benefit from the continent's digital evolution.

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