Good morning! 

As an investor, you most likely have seen recent headlines dominated by Monday's market meltdown that vaporized a cool $6.4trn faster than you can say "margin call." 

But fear not! We have your back with upcoming tips on defensive stocks and overseas havens to help you preserve your money during this financial frown! Stay tuned to our channels to know when they drop.

In today’s newsletter:

• EM assets steady recovery

• Bitcoin back above $56,000

• Kenya, Mozambique rate cuts

• Best places to invest in Africa

• Grow your savings with t-bonds

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Markets Wrap

African equity markets present a mixed picture. Nigeria's NGX ASI leads despite a weekly dip, while South Africa's FTSE/JSEASI and Kenya's NSE NASI experienced losses. WAEMU countries' indices show weekly gains. Cryptocurrencies faced significant weekly declines, with Bitcoin dropping 15.43% and Ethereum plummeting 25.02%, highlighting the sector's high volatility. In commodities, gold shows resilience with only a slight weekly drop of 0.79%. Oil experienced a 2.73% weekly decline, reflecting ongoing uncertainties in energy markets.

Markets

• Emerging market stocks recoup some of losses in Monday rout

• Bellwether stock Orange CI helps BRVM close out July on a high

• Global selloff hits as Egypt stock market, currency slide

• Bitcoin recovers above $55,000 after sharp decline in market rout

Earnings

• Ecobank Group's profit before tax jumps to $324m in half-year 2024

• Kenya's banking sector contracts as assets dip 2.7% to $58bn

• Non-interest revenue growth lifts Nedbank's first-half profit

• South Africa's Telkom sees revenue, subscribers jump in second quarter

Dividends

• SAPH to distribute over $3m to shareholders despite profit dip

• Nigeria's Transcorp Power to pay out $21.3m in dividends

A Message From Daba

Opportunity to Maximize Your Savings with Ivorian Treasury Bonds on Daba!

Opportunity to invest in Ivorian sovereign debt backed by the Ministry of Finance and Budget. These bonds offer attractive, stable, and government-guaranteed returns.

Key Details:

• Type: Treasury Bonds

• Issuer: Ivory Coast Government

• Tenure: 5 (2024-2029) and 7 years (2024-2031)

• Interest Rates: 5.90% and 6.00%

• Offer Price: 10,000 FCFA or US$17

• Offer Closing Date: August 13, 2024

Why Invest?

• Government Backing: Bonds issued by the Ivorian government, providing a level of security.

• Attractive Returns: Up to 29.21% over 5 years or 41.58% over 7 years (total investment returns).

• Economic Growth: Invest in one of West Africa's fastest-growing economies.

• Portfolio Diversification: Add international exposure to your investment portfolio.

This exclusive opportunity ends in just SIX days! So act now.

Head to the Daba app now to learn more.

Disclaimer: Informational purposes only.  Not the offer or sale of a security. Investing is risky. Do your own research.

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The Week’s Top Stories

Island dominance

Seychelles, Mauritius ranked the best African investment destinations by RMB

Seychelles and Mauritius topped a ranking of African investment destinations in a report analyzing 31 economies published on Tuesday by Rand Merchant Bank (RMB).

The two Indian Ocean island nations outperformed the continent when measured by their economic performance, market accessibility, investment climate, and social and human development.

The top ten countries in RMB’s assessment are Seychelles, Mauritius, Egypt, South Africa, Morocco, Ghana, Tunisia, Senegal, Nigeria, and Algeria, in that order.

Bank rallies

Bank of Africa stocks covering three subsidiaries rally to levels not seen in years

Three of the subsidiaries of Morocco-headquartered Bank of Africa (BOA), all listed on the BRVM, saw their share prices rally to levels not seen in at least five years last week.

Bank of Africa Mali (BOAM) surged by 21.10% to reach 2,095 FCFA, its highest price in five years, its Senegalese arm BOAS increased by 17.76% to 4,840 FCFA—its highest level since its IPO.

Meanwhile, BOA Côte d'Ivoire (BOAC) rose by 6% in a single day to reach a six-year high of 8,400 FCFA. Analysts suggest the rally is driven by a plan to raise share capital in the banks.

Rate cuts

Kenya surprises with rate cut as Mozambique maintains monetary easing

Kenya’s central bank surprised financial markets by cutting its benchmark interest rate—from 13% to 12.75%—for the first time in more than four years.

The central bank of the East African powerhouse anticipates that inflation will remain below the midpoint of its target range in the near term.

Meanwhile, Mozambique's apex bank cut its main interest rate for the fourth consecutive monetary policy meeting, citing a favorable inflation outlook and indicating that more rate easing is likely to follow.

Headline Roundup

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

Economy & Macro

• Fitch cuts Kenya’s credit rating after Moody’s downgrade

• Madagascar resumes interest rate hikes to curb stubborn inflation

• Investors sell off Nigeria dollar bonds over ongoing protests

M&A and Corporate Deals

• Fitch downgrades Dangote credit rating on liquidity concerns

• Kenya automaker Mobius to shut down over financial struggles

Startups and VC

• Jumia to raise over $100m in secondary shares as growth stalls

• Target Global-backed neobank Kuda grew revenue to $22m in 2022

• Egyptian fintech Lucky ONE gets $3m to scale credit platform

• Synapse Analytics secures $2m to drive AI expansion plans

Fundraising and Accelerators

• South Africa's HAVAÍC hits first close of $50m VC fund

• Egypt’s T-Vencubator launches new initiative to fund startups

Must-Reads on Daba

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

Daba Learn

• What is Series A Funding? A Guide for Startups

• Dividends: How They Work and Why They Matter

• 21 Investment Terms Everyone Should Know

Insights

• Where to Invest in Africa: Exploring the Top Investment Destinations

• Which African Countries Hold The Most Powerful Passports?

Perspectives

• Where the Senegalese Startup Ecosystem Is and Should Be Going

Opportunities Corner

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

• GameUp Africa (Aug 11)

• Future of Capitalism (Sep 30)

• Mastercard Agribusiness Challenge (Nov 22)

Chart of the week

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

Africa’s premier investment destinations: RMB’s “Where to Invest in Africa 2024” report analyzes the continent’s investment landscape and insights into the most promising destinations. Click here or tap the button below to read our key takeaways from the report.

That’s it for this week. Next Frontier is sent once weekly. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here.

If you haven’t, you can also download the Daba app to get daily bite-sized insights into African economies, industry and country reports, and access investment opportunities.

Catch you next week!