It’s raining dividends

Companies listed on the regional BRVM stock exchange – available through the Daba app – distributed $1.1bn in dividends for 2023, led by telecom firms like Sonatel.

Author

Anthony Miclet
June 06, 2024

Good Morning,

Morocco, set to co-host the 2030 FIFA Men’s World Cup, is launching derivatives trading by year-end to expand its capital markets—as part of efforts to finance infrastructure projects ahead of the prestigious sports tournament.

Tap here to learn more about the North African nation’s plan and in other top stories for today:

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Here are last week’s top stories

Mixed markets

Dividend payouts by BRVM stocks hit $1.1bn as telcos lead the pack

Companies listed on BRVM – available through the Daba app – distributed $1.1bn in dividends for 2023, led by telecom firms like Sonatel. African stocks offer some of the best dividend yields in emerging markets and are often undervalued, trading at lower price-to-earnings (P/E) multiples compared to their peers.

Bitcoin price fell slightly to over $70,000 on Thursday, steadying after breaking out of an over two-month trading trough as weak US economic data fueled expectations that the Federal Reserve will cut interest rates. That’s further stoked gold prices, jumping to a two-week high.

Crude oil prices are moving lower, after the EIA reported an estimated inventory build of 1.2 million barrels for the week to May 31 compared to a decline of 4.1 million barrels for the previous week, which failed to move prices higher.

Starlink breakthrough

Internet service gets license in Botswana, Zimbabwe after initial troubles

After initial reluctance to grant the Elon Musk-controlled venture licenses, Botswana and Zimbabwe have allowed SpaceX's Starlink satellite internet service to operate in their countries. 

The approval came quickly in Botswana after the President met with SpaceX officials. Zimbabwe granted a license shortly after arresting a politician's son for illegally using a Starlink terminal.

Allowing Starlink is a big step towards better internet access in both nations. Many areas, especially remote ones, still need to improve internet connectivity. Starlink can provide reliable internet service in these underserved regions.

At crossroads

South African assets gain on rising hopes of a market-friendly coalition

After the African National Congress (ANC) lost its parliamentary majority in last week's election, South Africa finds itself at a crossroads. The ANC faces a choice: ally with its biggest rival, the Democratic Alliance (DA), considered pro-business, or work with populist parties that could harm the economy. 

Early market gains hint at investor speculation favoring an ANC-DA coalition. However, fears linger of an alliance with radical parties like the Economic Freedom Fighters (EFF) or Jacob Zuma's uMkhonto we Sizwe (MK). 

With the ANC securing 40.2%, DA 21.8%, MK 14.6%, and EFF 9.5%, an ANC-DA partnership seems more viable and market-friendly, according to analysts. Notably, South Africa's economy contracted slightly in Q1 2024, highlighting the economic challenges the new government must address.

Headline roundup

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

Macro & Markets

VC Funding & Startups

Other Deals & Expansion

  • Ghana's Kofa to expand battery swapping system to Kenya, Togo

  • Kenyan startup GoBEBA to expand with $200k Madica funding

  • PE investor TLG Capital backs African swimwear brand

Funds & Accelerators

Startup Opportunities

Discover funding and accelerator opportunities to boost your startup's growth.

Our insight for the week

Get more context into events shaping Africa’s economic landscape.

How can you optimize your portfolio with dividend yields? Investors seeking to optimize their portfolios should look no further than the lucrative dividend yields available on African stock exchanges. 

By strategically investing in companies with a history of paying out high dividends, you can generate steady passive income to complement potential capital gains.

The key is the dividend yield - the ratio of a stock's annual dividend per share to its current market price. 

The higher the yield, the more cash flow an investor can expect. 

Many well-established African companies offer dividend yields far exceeding those found in more developed markets.

For example, BOA Benin, listed on the BRVM regional exchange, is slated to pay a 706 FCFA per share dividend in May 2024. 

This translates to an impressive 10.17% yield for investors who buy the stock before the ex-dividend date.

The Daba investment platform makes it easy to access and research such high-dividend opportunities across Africa and our suite of tools empowers you to make informed decisions and construct a portfolio optimized for steady dividend income.

To learn more about leveraging dividend yields to enhance your African investment strategy, read the detailed guide on our website. Tap the button below to get started.

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