Good Day,

Here's a quick preview of today’s newsletter: Revenues in Africa’s gaming industry rose 12% to $1.8B last year, telecom price wars slash data costs, South Africa’s UTF II fund to back university-led tech startups, a US-China trade war may benefit African exports and Ghana’s inflation dips but remains stubbornly high.

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ICYMI: Our Vision for 2025

In this annual message, our CEO, Boum III Jr 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 02/07/2025 market close

Five Things You Need to Know

Gaming surge: Africa’s gaming industry expanded 12% to $1.8B in 2024, outpacing global growth. Mobile gaming dominates, driving user numbers to 349M, with Egypt, Nigeria, and South Africa leading revenue. Faster internet and smartphone adoption fuel eSports and global investment.

Mobile battle: Africa’s mobile telecom sector is fiercely competitive, with MTN, Orange, and Airtel leading. While data costs have plummeted, low margins threaten infrastructure upgrades. Video consumption surges, yet just 320M of 1.1B people access mobile internet, exposing a digital divide.

University fund: Stocks & Strauss launched UTF II, a $21.4M fund investing in university-driven tech startups. Expanding from UTF I, it backs deep-tech firms like Hyrax Biosciences and CubeSpace. South African universities are emerging as global hubs for high-impact innovation.

War gains: A US-China trade war could open new markets for African exports, particularly in raw materials and agriculture. However, a stronger dollar and weakened emerging-market currencies may offset gains. With US aid under scrutiny, Africa must prioritize self-reliance in global trade.

Cooling prices: Ghana’s inflation dipped to 23.5% in January, marking the first decline in five months. Non-food prices eased, but food inflation persists. The central bank warns inflation will take longer to reach target levels, complicating monetary policy amid economic uncertainty.

Another Winning Call from Daba Pro

One of our BUY recommendations for Daba Pro subscribers has already hit the mark within the first month of the year. 

Our prediction for PALM CI (PALC) set a target price of CFA 5,400, and the stock has now reached CFA 5,475—proving yet again the accuracy of our insights.

Nine of our BUY recommendations successfully hit their target prices last year, reinforcing the strength of our research and stock-picking strategy.

Want to stay ahead with expert stock picks? Learn more about Daba Pro and how our insights can help you maximize returns.

Headline Roundup

Markets & Finance

• Kenyan Central Bank Pushes Banks to Cut Lending Rates

• SITAB Share Price Hits Highest Level in Nearly a Decade

• BVMAC Sees Sluggish Trading in January Amid Market Weakness

Economy & Macro

• South Africa Central Bank Cuts Rates Again on Inflation Risks

• Liberia Eyes $3B Investment After New Mineral Discoveries

• Nigeria Targets 2.7M Barrels Daily Oil Output by 2027

Corporate & M&A

• IBM Transfers Nigeria and Ghana Operations to MIBB After Exit

• Burkina Group Coris Invest Raises $31.5M via Private Bond Issuance

• Qualcomm Opens Applications for ‘Make in Africa’ Startup Mentorship

VC, Startups & Tech

• Egypt’s Simplex Gets $13M for Computer Numerical Control Factory

• Cedar Money Raises $9.9M to Expand Stablecoin Payments

• StarkWare Launches $4M Fund for African Blockchain Startups

• Nigeria’s Accrue Raises $1.58M to Expand Cross-Border Payments

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

Africa’s gaming market is booming! New data from Carry1st and Newzoo highlights the explosive growth of gaming in Africa. The industry expanded 6X faster than the global average in 2024, driven by mobile adoption.

Here are key insights from the report:

• 349M gamers in Africa in 2024 (up 32M from 2023, a 10% YoY increase)

• $1.8B revenues in 2024, growing 12.4% YoY (vs. 2.1% global growth)

• Mobile dominates: 304M gamers (87% of total), driving $1.6B in revenue

• Top revenue markets: Egypt ($368M), Nigeria ($300M), South Africa ($278M)

• Fastest-growing countries: Eritrea & Niger

Why it matters: Africa’s gaming industry is leapfrogging traditional platforms, fueled by mobile adoption, internet access, and innovative payment solutions.

As global gaming slows, Africa remains a rare growth frontier.

That’s it for today.

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