Good Morning! 

Egypt will receive an additional $5bn investment from Saudi Arabia, following a $57bn IMF-led bailout—$35bn of which came from the UAE. The investments come amid reforms in the North African nation and highlight Gulf countries' crucial role in its economic recovery.

Also in today’s newsletter:

• BRVM hits 7-year highs

• U.S. Fed delivers huge cut

• A historic African IPO

• Join our next webinar

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Now, let’s dive in.

Markets Wrap

The BRVM stock market is trading at levels not seen since 2017, thanks to large-cap stocks like Sonatel (SNTS). Gold is trading at record levels, crypto remains muted, and oil prices steadied following gains earlier in the week, as investors awaited the U.S. Federal Reserve's interest rate cut.

Markets

• BRVM Stock Market Maintains Momentum to Reach Seven-Year High

• Senegalese Telco Sonatel Trading at Highest Level Since 2017

• Solibra Resumes Trading After Share Split to Comply with BRVM Rule

• Senegal’s Dollar Bonds Fall as IMF Warns of Fiscal Deterioration

Earnings & Dividends

• Burkina Faso's Onatel Reports 16.4% Dip in Profit for First Half 2024

• OUTsurance Shares Surge as Profits Jump and Special Dividend Announced

The Week’s Top Stories

Record IPO

Benin's National Lottery Company to List on BRVM in Historic Public Offer

Loterie Nationale du Bénin SA (LNB SA) plans to list on the BRVM in October, becoming just the second Beninese company on the exchange after Bank of Africa Benin (BOAB).

LNB SA, with 3,000 sales points, expects revenues to grow from 80bn FCFA in 2021 to 94bn ($160m) FCFA by 2024. Its IPO offers shares between 4,000 and 5,000 FCFA ($7-$9) per unit, available exclusively on the Daba app.

This move strengthens Benin’s financial market, encouraging local companies to raise capital and positioning LNB SA as a key player in regional economic development.

Rates pivot

African Economies Prepare for Interest Rate Cuts Amid Easing Inflation

Central banks in Africa's major economies are poised for policy shifts as inflation eases. South Africa's Reserve Bank is expected to cut its benchmark rate to 8%, while Nigeria may hold rates steady. Other nations like Morocco and Kenya are likely to follow with small cuts.

This trend reflects improving economic conditions across the continent, with stable currencies and lower oil prices supporting the moves. As we explore in this piece, the policy shifts could have major implications for African economies and asset classes.

Meanwhile, the U.S. Federal Reserve cut interest rates by half a percentage point on Wednesday, marking the first reduction since early 2020. The decision lowers rates to about 4.9% and is an aggressive start to a policy shift as the central bank believes it is making progress in controlling inflation.

Africa’s first

Nairobi-Based Flux Sells Continent’s Pioneer Carbon Dioxide Removal Credits

Kenya’s Flux has sold Africa's first carbon dioxide removal credits using enhanced rock weathering. The climate startup pre-sold credits for 540 tons of CO2 at $370 each to the Milkywire Climate Transformation Fund.

The technique involves spreading crushed basalt to absorb CO2 from the atmosphere. Flux's project covers a 600-hectare sugar cane plantation in Kenya, with plans for expansion in Nigeria and Cameroon.

Enhanced rock weathering could potentially remove up to 2bn metric tons of CO2 annually, according to Nature. However, large-scale trials are still ongoing to verify its effectiveness.

Headline Roundup

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

Economy & Macro

• Kenya Revives Plans for Diaspora Bond to Fund Infrastructure Projects

• Rwanda's Consumer Prices Increase by 5% in August on Transport Costs

• South Africa Inflation at Below Central Bank Target, Rate Cut Likely

• Zimbabwe to Conduct First Elephant Cull in Decades Amid Severe Drought

• Nigeria Inflation Falls to Six-Month Low Ahead of Policy Meeting

M&A and Corporate Deals

• DP World, Nedbank Partner to Expand Trade Financing for African SMEs

• Entlaq Acquires Stake in Egypt’s Brotinni to Boost Food Tech

• Lesaka $86M Adumo Acquisition Gets Regulatory, Shareholder Nod

Startups and VC

• Egypt-Born FlapKap Raises $34M for SME Financing in MENA Region

• Nigerian Healthtech Field Gets $11M Gates Foundation Backing

• South Africa's Talk360 Raises $1.4M in Pre-Series A Round

• Senegalese Lender Rubyx Gets $440K Loan for Product Rollout

Fundraising and Accelerators

• Itana Partners with Accelerate Africa to Help Startups Scale

Must-Reads on Daba

Boost your investing IQ with educational blogs and thematic articles on Africa.

Learn

• Bond Yields: What They Are and Mean for Your Investments

• Investing Basics: 21 Investment Terms Everyone Should Know

• Ten ETF Strategies Every Beginner Investor Should Know

Insights

• What Central Bank Rate Cuts Mean for Your Money in Africa

• Will Tech VC Funding in Africa Rebound on Interest Rate Cuts?

• Why Now Is a Good Time to Invest in African Venture Capital

Perspectives

• The Almanack of DFS Lab: Making Sense of VC Investing in Africa

• Is Africa’s Growth-Driven Fintech Boom Built to Last?

Opportunities Corner

Discover funding, awards, and accelerator opportunities to boost your startup's growth. Deadline in brackets.

• Future of Capitalism (Sep 30)

• Mastercard Agribusiness Challenge (Nov 22)

Chart of the week

Get more context into themes shaping Africa’s investing landscape.

Following U.S. Fed’s lead and cooling inflation, African central bankers are set to cut rates: The Federal Reserve cut interest rates by half a percentage point on Wednesday, marking the first reduction since early 2020. Amid slowing inflation, African central banks are largely expected to follow suit. As the global monetary policy landscape shifts, click here or tap the button below to discover what this means for your money.

That’s it for this week.

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