Good Morning,

Here's a quick preview of today’s newsletter: FDI flows to Africa rose 85% in 2024 despite a global decline, a new $5B renewable energy initiative just launched, insurtech Naked raised $38M, central banks weigh rate moves and South Africa aims to host the 2027 Formula 1 Grand Prix.

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Before we continue, catch up on the Daba Vision for 2025 as highlighted by our CEO, Boum III Jr.

In this annual message, Boum shares key milestones, growth insights, and our vision for Africa’s financial future.

From AI-powered investing to strategic partnerships, see how Daba is shaping the next era of wealth creation. 

Markets Snapshot

Data as of 01/31/2025 market close

Five Things You Need to Know

FDI boom: Foreign direct investment in Africa surged 85% to $94 billion in 2024, defying an 8% global decline, per UNCTAD. Egypt led with $35 billion, driven by ADQ’s $24 billion Ras El-Hekma megaproject, cementing Africa’s rising appeal for global capital.

Energy access: The African Guarantee Fund launched a $5 billion local currency guarantee facility to expand SME financing in renewable energy. Backed by AfDB and the World Bank, the initiative aims to electrify 300 million Africans by 2030, mitigating Africa’s $25 billion annual energy deficit.

Insurance push: South African insurtech startup Naked raised $38 million in a Series B2 round led by BlueOrchard, bringing total funding to $66 million. The AI-driven platform, which simplifies insurance access, will use the funds for expansion, automation, and regulatory capital requirements.

Policy split: African central banks are set for divergent rate moves, balancing inflation and currency stability. South Africa, Kenya, and Egypt may ease rates, while Nigeria and Ghana will likely maintain high rates to curb inflation and support local currencies.

Formula-1 bid: South Africa is raising $50 million to secure a 2027 Formula 1 Grand Prix, reviving a bid after a failed 2023 attempt. With Cape Town and Johannesburg in contention, government and private sponsorships will be key to securing the race.

The Daba Pro Advantage

Navigating African stock markets can be challenging due to limited access to reliable data, relatively fewer analysts covering the region, and lower liquidity compared to global markets. 

This makes it difficult for investors to identify high-potential opportunities.

Daba Pro helps investors overcome these challenges by providing expert-curated stock recommendations, research, and insights. 

Our stock picks delivered strong returns in 2024, demonstrating the value of informed decision-making in African equities markets.

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Meanwhile, our top three performers—Sonatel (+33.3%), SocGen (+32.1%), and Nsia Banque (+20.2%)—surpassed key indexes like the S&P 500 (+23.0%), China (+13.2%), and the Euro Stoxx 50 (+9.1%) on a year-to-date return basis.

Learn more about how our stock picks helped investors win big last year, how Daba Pro can help improve your portfolio returns, and how to subscribe on our website.

Headline Roundup

Markets & Finance

• Bitcoin Holds Above $100K as AI News Pressures Tech Stocks

• BRVM Stock Market Gains as SocGen Leads Market Cap Growth

• Kenya Power Declares First Interim Dividend in Nine Years

• East Africa Breweries H1 Profit Rises for First Time in Three Years

Economy & Macro

• Zimbabwe Maintains Tight Monetary Policy to Support Currency

• South Africa Central Bank Cuts Rates Again on Inflation Risks

• Tunisia’s Foreign Reserves Drop 13% After Eurobond Repayment

• Ghana’s Trade Surplus Hits Record $5B in 2024 on Gold Boom

• Mozambique Cuts Rates Again to Help Economy Amid Unrest

• Kenya’s Inflation Stays Below 5% in Boost for Rate Cut Prospects

Corporate & M&A

• Starlink Becomes Kenya’s Eighth-Largest Internet Service Provider

• Mayelia to Acquire Leading Ivorian Auto Inspection Company

• Castel Buys Diageo’s Stake in Guinness Ghana for $81M

• Lemfi Acquires Irish Firm to Expand Remittance Services in Europe

• Moove Acquires Kovi to Expand Ride-Hailing Fleet in Latin America

VC, Startups & Tech

• Proparco Invests $10.5M in AfricInvest Africa SME Fund

• Insight Terra Gets $5.7M to Scale Environmental Risk Platform

• Ivorian Fintech Cauridor Gets $3.5M for Cross-Border Payments

• Gates-Backed i3 to Invest $1.6M in African Health Startups

• Applications Open for Women Techsters Fellowship Program

What Else We’re Reading

• Africa in 2025: The Fastest-Growing Economies

• The Best BRVM Stocks and African Stock Markets of 2024

• M&A Surge: How Consolidation is Reshaping African Tech

• African Tech in 2024: Major Themes That Shaped the Year

• Top 15 Largest African Startup Funding Rounds in 2024

Chart of the Week

FDI inflows to Africa in 2024 surged on a year-on-year basis, increasing by 84% (the largest globally) to an estimated $94 billion, the highest value ever recorded. The increase was largely driven by a single international project finance deal in Egypt for the development of the Ras El-Hekma peninsula by ADQ, a UAE-based sovereign investment fund. Net of the increase in Egypt, FDI flows to Africa were still up 23%, but they remained modest at about $50 billion.

That’s it for today.

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Catch you next week!