Hi there and welcome to Daba’s weekly Next Frontier newsletter.

Here’s a quick preview of today’s newsletter: Ethiopia opened its banking sector to foreigners, Starlink resumed Kenyan sign-ups, Lesaka acquired Bank Zero, and Ethiopia’s Better Auth raised $5M to disrupt global developer authentication.

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What’s New on Daba?

We’re excited to announce the launch of Markets Talk, our new podcast for African investors. 

Whether you’re tracking the BRVM, exploring African markets, or just learning the basics, each episode delivers sharp market recaps, deep dives, and bite-sized finance lessons—all in one place.

👉 Listen to our latest episodes and be sure to follow Markets Talk on Spotify, Apple Podcasts, or your favorite platform.

Markets Snapshot

Daba indexes track curated stock collections—all available to invest in directly on the app.

The best-performing BRVM stocks of the week by share price increase—all available to invest in directly on the app.

Data as of 06/27/2025 market close

Global markets closed the week mixed, with U.S. indices S&P 500 and Nasdaq Composite hitting record closing highs on Friday, while African exchanges posted selective corrections. Read our full recap here for what happened in stock markets last week and what to watch in the week and month ahead.

Four Things You Need to Know

Opening up: Ethiopia opened its banking sector to foreign investors for the first time in 50 years, allowing up to five new licences under a June 25 directive. The move followed banking law reforms and aimed to attract capital, modernise the industry, and expand financial inclusion in East Africa’s largest economy.

Starlink returns: The SpaceX-owned internet service resumed activations across Kenya after a seven-month pause caused by network congestion and soaring demand. A new Nairobi ground station eased strain, but regulatory threats and competition from Safaricom’s 5G rollout intensified the pressure on its premium-priced satellite service.

Fintech merger: Lesaka Technologies agreed to acquire Bank Zero in a R1.1 billion ($61M) deal, marking its shift from fintech to fully licensed banking. The acquisition gave Lesaka a digital-first platform with R400 million in deposits and a path to profitability in South Africa’s consolidating finance sector.

Auth disruptor: Ethiopian developer Bereket Engida raised $5M for Better Auth, an open-source authentication tool built from Addis Ababa that’s winning over AI startups. Backed by Y Combinator and Peak XV, the project reached 150,000 weekly downloads and offers devs full control over user auth without vendor lock-in.

Headline Roundup

Markets & Finance

• Valu Begins Trading on EGX Through In-Kind Dividend Listing

• BRVM Considers Switch to Real-Time Settlement in Reform

• NSIA Group Plans Securitization Deals to Boost SME Lending

• Trading on First Somali National Stock Exchange to Start Next Year

• BRVM Adds $3.5B to Stock Market Capitalization in Six Months

Economy & Macro

• Niger Republic Moves to Nationalize Power Utility NIGELEC

• Fitch Lifts Ghana’s Credit Rating on Bond Deal, Cooling Inflation

• DRC Faces Fresh Legal Battle With AVZ Over Lithium Site

• Gabon Suspends New Tax Exemptions Amid Revenue Shortfall

• Lower Food Prices Help Malawi Inflation Fall to 27.7% in May

Corporate & M&A

• Morocco’s Wafa Launches $317M Bid for Egypt’s Delta Insurance

• Nigeria’s BAS Group Acquires Fintech Zuvy to Expand SME Credit

• Crypto Platform Luno Relaunches in Kenya After 10-Year Hiatus

• Chowdeck Acquires POS Startup Mira in Strategic Expansion Move

• Visa Partners Yellow Card to Expand Stablecoin Payments in Africa

VC, Startups & Tech

• Nowlun Gets $2.3M to Build Freight Assistant for MENA, Africa

• Nigeria’s PaidHR Gets $1.8M to Scale Cross-Border Payroll Tech

• Hizo Raises $100K to Facilitate Intra-African Money Transfers

• Sabi Sacks 20% of Staff in Pivot to Commodity Supply Chains

• Aria Launches $1.7M Initiative to Back Deeptech Startups in Egypt

Must-Reads on Daba

• What To Do When Your Stock Portfolio Is Suffering a Loss

• A Comprehensive Guide to Mutual Funds for Beginners

• How to Invest in African Bonds: A Guide for Investors

• Investing in African IPOs: A Beginner’s Manual on How it Works

Chart of the Week

Africa bucks global FDI trend: While global foreign direct investment (FDI) fell 11% in 2024, Africa defied the trend with a 75% surge to $97B - an all-time high. This growth represents 6% of global FDI flows, up from 4% in 2023.

The continent's performance stands in stark contrast to developed economies, which saw a 22% decline. European investors hold the largest FDI stock in Africa, followed by the US and China.

Regional winners include North Africa leading with +277% growth, Southern Africa at +44%, East Africa at +12%, and Central Africa at +13%. Only West Africa saw a decline of -7%.

Investment facilitation efforts and liberalization policies across the continent are paying dividends, proving Africa's growing appeal to international investors. Read the full story on Daba.

That’s it for today.

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Catch you next week!