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Here's a quick preview of today’s newsletter: South Africa's GDP rebounds with agriculture leading the way, VC firm LoftyInc raises $43M for African startups, Côte d’Ivoire targets record gold output, and tech investment in Africa faces sharp declines but hints at recovery.

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Data as of 03/07/2025 market close

Four Things You Need to Know

Sluggish recovery: South Africa’s economy expanded by 0.6% in Q4 2024, rebounding from a 0.1% contraction, but missed forecasts of 0.9% growth. Agriculture led the recovery with a 17.2% surge, while mining and manufacturing shrank, leaving the full-year GDP growth at a modest 0.6%.

Big bet: LoftyInc Capital secured $43M for the first close of its third fund, LoftyInc Alpha, targeting late-seed and Series A startups across Africa. Investors include sovereign wealth funds, development finance institutions, and high-net-worth individuals, signaling strong interest in Africa’s maturing startup ecosystem.

Gold boom: Côte d’Ivoire’s gold production is set to hit a record 62 tonnes in 2025, up from 58 tonnes, driven by the Lafigué mine’s expansion. The mining surge strengthens the country's economic diversification away from cocoa and positions it as a key player in West Africa’s gold market.

Funding dip: Investment in African tech startups fell 50% to $1.1B in 2024, marking a second consecutive year of decline amid tight global capital flows. Funding rounds shrank, and investor participation fell 35%, but fintech, health tech, and logistics remain resilient amid early signs of a 2025 recovery.

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Headline Roundup

Markets & Finance

• Orange Côte d’Ivoire Raises 2024 Dividend Payout After $1.7B Revenue

• Discovery Posts 34% Jump in First-Half Earnings on Strong SA Growth

• Shoprite Operating Profit Jumps 14% as South Africa Power Crisis Eases

• South Africa's Nedbank Profit Rises on Non-Interest Revenue Growth

Economy & Macro

• South Africa’s Agricultural Exports Hit Record $13.7B in 2024

• Nigeria LNG Faces 80% Drop in Gas Supplies Due to Vandalism

• Egypt’s Non-Oil Private Sector Expands for Second StraightMonth

Corporate & M&A

• Safaricom Faces Legal Battle Over Contract Dispute With Former Dealer

• UAE’s Dubizzle Group Acquires Egyptian Online Car Marketplace Hatla2ee

• Kobo360 Investors Exit as Ex-CEO Buys Back Struggling Startup

VC, Startups & Tech

• PepsiCo, Absa Back Mobile Marketplace for Farmers Khula in $6.8M round

• Fawry Invests $1.6M in Three Egyptian Startups to Expand Solutions

• Kenyan Re-Commerce Startup Badili Secures $400K Debt from Proparco

• Egypt's Widebot Raises $3M to Build Arabic Large Language Model

What Else We’re Reading

• Top Themes Africa Investors Should Watch in 2025

• Debt, Elections, Growth: WAEMU High-Stakes Year Ahead

• Benin’s IPO Market Heats Up Amid Economic Reforms

• Big Reset: Uranium-Rich Niger Set for Rapid Growth

Chart of the Week

Stablecoins—cryptocurrencies whose value is pegged to that of another currency, commodity, or financial instrument—have become financial lifelines across the continent, offering refuge from volatile local currencies.

Recent Chainalysis data reveals stablecoins now constitute 43% of Africa's crypto transaction volume, with adoption surging in countries experiencing severe currency pressures.

While stablecoins offer immediate relief from local currency volatility, they potentially accelerate currency depreciation by reducing demand for domestic assets, mirroring traditional dollarization concerns that have historically plagued emerging markets.

How do African governments respond?

We explore some potential solutions in our latest edition of the Pulse54 newsletter. Tap the below to read now.

That’s it for today.

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