Good day! 

The Nigerian securities commission last week granted provisional approval to two digital asset exchanges, marking a shift from the hostility that has defined the country's crypto landscape in recent years.

Regulatory clarity offers hope but doubts linger over the business environment following the controversial arrest and ongoing detention of a Binance executive.

Also in today’s newsletter:

• BRVM maintains bullish trend

• Dangote refinery breakthrough

• Inflation cools in WAEMU region

• The latest on Africa’s mpox outbreak

Next Frontier is sent once weekly. Was this email forwarded to you? Sign up below to get it directly next time.

Markets Wrap

African equity markets showed mixed performance this week. South Africa's FTSE/JSEASI declined 2.83%, while other markets gained. WAEMU indices led with BRVM-CI up 2.96% and BRVM 30 rising 2.90%. Nigeria and Kenya saw modest increases.

Cryptocurrencies faced downward pressure, with Bitcoin dropping 3.41% and Ethereum falling 1.29%, reflecting ongoing volatility in the digital asset space.

Commodities experienced declines across the board. Gold decreased by 1.26%, while oil saw a significant 7.29% drop, indicating weakening sentiment in commodity markets for the week.

Markets

• BRVM Sustains Positive Trend with 2nd Consecutive Week of Gains

• BOA Mali Leads Weekly Gains Amid Capital Increase Process

• Speculator Activity Sees Uniwax Lead Weekly BRVM Stock Declines

• Nigerian Banking Stocks Show Recovery Signs Post-Recapitalization Dip

Earnings

• Nsia Banque Delivers Strong Profitability, Boosting Shareholder Value

Dividends

• BRVM-Listed CFAO Motors to Pay Out Over $5m in Dividends

A Message From Daba

Share Daba's Newsletter on LinkedIn for a Chance to Win!

Each week, we're giving away a $5 discount on a Daba Pro subscription to 5 lucky readers who share our newsletter on LinkedIn and tag Daba.

To enter, simply:

1. Share this week's Daba newsletter on LinkedIn

2. Tag Daba in your post

3. Send a screenshot of your post to [email protected]

We'll select 5 winners each week to receive the $5 Daba Pro discount.

Don't miss out - share our newsletter on LinkedIn today!

The Week’s Top Stories

Refining oil

Nigeria's new Dangote facility Begins Gasoline Production After Delays

Nigeria's Dangote oil refinery began filling tanks with gasoline, signaling a major shift in the country's fuel landscape. Distribution is set to start this weekend, with an initial output of around 90,000 barrels per day, ramping to 250,000 by mid-2025.

The facility's full capacity of 650,000 barrels per day, including 330,000 of gasoline, comes as Nigeria's state oil company faces supply challenges. 

This development could significantly reduce the country's reliance on fuel imports, which reached 250,000 barrels per day last year, and transform regional fuel markets by disrupting established trade routes.

Cooling prices

Inflation in Francophone West Africa Eases at 4.4% on Lower Food Costs

Average inflation across the eight French-speaking West African nations held steady at 4.4% in July, per data from the regional central bank BCEAO. Food prices eased slightly, while housing costs inched up.

Senegal and Benin lead the region in taming inflation, with rates well below the 3% community standard. Price caps on essential foods have proven effective in these countries.

The WAEMU region's inflation outlook remains stable. Food price moderation is balanced against rising housing costs, and central bank policies continue to target price stability across member states.

Mpox latest

Vaccine Makers Prepare for Production As Outbreak Threatens Economies

African vaccine manufacturers are gearing up to produce mpox jabs in response to a deadly outbreak across the continent as the Africa CDC moves to avoid delays seen during the COVID-19 pandemic.

The outbreak, centered in the DRC with over 575 deaths this year, has spread to at least eight other African nations. The WHO has declared it a global health emergency, with cases also reported in Sweden and Thailand.

Fitch Ratings warns the outbreak could negatively impact economic activity and strain fiscal metrics in affected countries. WHO says vaccines will arrive Africa in a “few days”.

Headline Roundup

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

Economy & Macro

• Zambia’s Inflation Hits 32-Month High Amid El Niño-Induced Drought

• South Africa GDP Returns to Growth But at Slower Than Expected Pace

• Egypt Signs Contracts to Hedge Against Petroleum Price Swings

• US-Backed Angola Rail Plan Gets $200M From Regional Bank

• Botswana's President Masisi to Seek Second Term in October Election

M&A and Corporate Deals

• Santam Plans Expansion into Asia to Diversify Premiums, Boost Growth

• Starlink Starts Operations in Botswana, Ghana After Securing Licenses

• Chinese EV Maker BYD Expands into Zambia Via Local Partnership

Startups and VC

• Rwanda's Ampersand Secures $2M to Expand EV Solutions

• NALA, Flutterwave Expand Africa Reach with Licences in Uganda

• Kredete Gets $2.25M to Scale Financial Platform for African Immigrants

• Chpter Raises $1.2M to Expand Social Commerce Platform in Africa

• South Africa's Omnisient Raises $7.5M to Expand Privacy Tech Globally

Fundraising and Accelerators

• US Development Agency to Back Liquid Telecom in $225m Raise

• Visa Backs Kenyan HR and Payroll Startup Workpay in $5m Round

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

• How to Build a Diversified Portfolio Using Alternative Investments

• Investing Basics: 21 Investment Terms Everyone Should Know

• Defensive Stocks: What to Buy During Market Downturn

Insights

• What Cooling Inflation, Rate Cuts Mean for Investing 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.

• Tholoana Enterprise Program (Sep 9)

• 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 weakest passports: The latest Henley Passport Index highlights the stark disparities in global mobility for African nations. Somalia's passport, granting visa-free access to a mere 35 countries, ranks as the continent's weakest in 2024 while powerhouses like Seychelles and Mauritius enjoy travel privileges akin to Europeans. The rankings underscore the complex interplay of geopolitics, economics, and diplomacy that shapes international travel access. Click here or tap the button below to read the article.

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!