Tag: dabafinance

  • It is Too Early to Judge African Venture Capital

    It is Too Early to Judge African Venture Capital

    Contributed by Mathias Léopoldie, Co-Founder of Julaya via Realistic Optimist.

    Optimizing for home runs

    It is said that the first venture capital (VC) firm was founded in 1946, in the USA. The American Research & Development Corporation (ARDC) became famous for its $70,000 investment in Digital Equipment Corporation, a computer manufacturer, which went public in 1967 at a whopping $355M valuation. Investors taking risky bets on companies wasn’t new, but the computer era put venture capital’s singular “power law” on full display. 

    A baseball game is an apt analogy to conceptualize how venture capital works. The most exciting play, which also brings outsized returns, is when the ball skyrockets over the fence resulting in a home run. 

    VC is quite similar, as the power law nature implies that a few investments (<5%) will drive most of a fund’s returns. While the number of home runs in baseball might not guarantee winning the season, it does in VC.

    This is why VC is an exciting asset class: sharp skill and experience are necessary, but luck plays a non-negligible role. It is no surprise that, amongst asset classes, VC has the highest dispersion of returns. Participants can either win big or lose a lot.

    Source: VCAdventure

    The African VC ecosystem is young, inching past its first decade of existence. The African internet revolution took a different shape than it did elsewhere: between 2005 and 2019, the share of African households possessing a computer went from 4% to 8%, while other developed economies witnessed a 55% to 80% jump over the same period. 

    One can’t expect a VC industry to suddenly flourish in an economy where microchip-equipped computer and smartphone ownership is so scarce. The heart of the VC industry is called “Silicon Valley” for a reason.

    Another trend, however, calls our attention. Namely, the rise of mobile phones on the continent. Currently, over 80% of Africans own a mobile phone, a figure that reaches close to 100% in some countries. The 2000s-2010s feature phone mass production era is to thank. Transsion Holdings, a Chinese public company, tops the leaderboard in terms of mobile phones sold in Africa, through its portfolio of brands (Tecno, Itel, and Infinix). 

    This offline, ‘computerized’ revolution of sorts is significant for the continent, as a large part of Sub-Saharan Africa’s population still lacks internet access. This includes people who own a feature phone but no smartphone, or people for whom the cost of internet data is prohibitively expensive. Internet’s geographical reach in Africa also remains patchy, further complicating the equation.

    Source: GSMA

    Unsurprisingly, telecom operators have emerged as this mobile phone revolution’s winners. The mobile money industry is a striking example: a fertile mix of USSD technology and agent networks enabled telecom operators to become fintech companies as far back as 2007. Those same telcos now derive a significant amount of their business from the financial services they ushered in. M-Pesa, Kenya’s leading mobile money service provider, now accounts for more than 40% of Safaricom’s (its parent telecom operator) mobile service revenue. 

    In Sub-Saharan Africa, 55% of the population possesses a financial account, with mobile money’s rise boosting that number in recent years. That’s approximately double the amount of Africans with an internet connection.

    Too early to call 

    In this context, many are the Cassandras lamenting venture capital’s failure in Africa. These conclusions seem premature, both because the industry itself is novel but also because the digital ecosystem it operates in is still nascent.

    Even by removing Africa from the picture, venture capital is a long-term industry, and its illiquidity can lead to prolonged exit times. According to Dealroom, only 17% of portfolio startups globally exit within the investment period of 10 years. Initial, tangible VC investments in Africa debuted around 2012. We believe that the pessimists are neither right nor wrong: they’re just pontificating too early.

    That being said, the past decade has drawn the contours of what can be improved and highlighted what has worked.

    # years it takes for portfolio startups to exit, along with exit size (Dealroom)

    The casino analogy

    Casinos constitute another pertinent venture capital analogy. Addiction and money laundering aside, a casino is a fascinating business. In a casino, a few people win exuberant amounts, while the many ‘losers’ subsidize the entire operation. In return for setting up the infrastructure, applying rules, and mediating disputes, the casino pockets a handsome amount of the proceeds as profits.

    Venture capital’s logic is similar to a casino’s. “Winners” are the top decile of skilled VC funds reaping outsized returns. “Losers” are the VC funds that don’t return the amount of money they promised their investors (LPs). The casino itself is the government, collecting tax revenue in return for organizing the game.

    Without casinos’ power law gains distribution, no one would play. It is by design that ‘returns’ are extremely skewed, enabling the casino economy to work. VC is similar: it is by design that most of the returns come from the top decile funds and companies because winning in venture capital is hard. It wouldn’t be possible without the entire ecosystem structure, and failing companies still provide tremendous value to the other players. 

    Mixing profitability and venture scale

    While far from a solely African problem, the confusion between these two terms may cause damage. In light of hostile, macroeconomic conditions, many Africa-focused VCs have started demanding that their startups reach “profitability” even if this means compromising on hyper-growth.

    This is partly a mistake: if investors want to invest in profitable African businesses, they can invest in African banks for example, which exhibit fantastic ROIs. Or switch to private equity. But that isn’t the VC game.

    VCs demanding that their portfolio companies, especially young ones (pre-seed and seed stages), become profitable quasi-eliminates any potential “home-run” companies. The latter can only emerge through market share dominance, a process facilitated by operating at a company-level loss when competitors can’t. Those home-run companies are the only way a VC can reach the outsized returns it promised its LPs.

    Herein lies the confusion between profitability as a whole and positive unit economics at the marginal level. VCs should be encouraging their portfolio companies to reach “venture scale”. Venture scale is the ability to grow at a decreasing and very efficient marginal cost. This implies tinkering and getting unit economics to a point where the revenue generated from each unit sold is superior to what it costs to make it. This metric is referred to as the “contribution margin”.

    A company with a positive contribution margin, which can be unprofitable as a whole because it has very high fixed costs (such as R&D), has a clear path to long-term profitability. This justifies pumping large amounts of money into it, enabling the company to reach the economies of scale it needs to win.

    Companies continuing their fundraising route, and even going public, with iffy contribution margins either speed-run their death (Airlift) or make their lives significantly harder (SWVL). Those are the business models VCs should be wary of. However, a blind focus on company-level profitability for the sake of profitability doesn’t make much sense in the VC context. There are very useful data points that companies can follow to see if they are on the right path, such as the “burn multiple” or the “magic number”. 

    VCs investing in African startups should be cognizant of this difference as they hit the brakes during the current funding winter.

    African VC: Expensive and risky, replete with singular challenges

    The early innings of the African venture capital ecosystem have made two things clear: venture capital in Africa is expensive and risky.

    It is expensive because lagging infrastructure might nudge startups to build out their own, which costs money, additional time, and expertise. If the infrastructure needed can’t be built in-house, such as public infrastructure (roads, etc…), the startup will have to contend with the higher prices resulting from the existing infrastructure’s inefficiencies. This is a salient problem for logistics startups, for example.

    Funding high-growth businesses in Africa can thus turn out to be an expensive endeavor, generating infrastructure costs that wouldn’t be necessary in other, more developed markets. 

    It is riskier if funded by international funds in international currencies (USD, Euros, GB Pounds, etc…). Take Nigeria for example, one of the continent’s venture capital darlings. Earlier last year, the Central Bank of Nigeria floated the local currency (the naira) away from its traditional peg to the USD, in a bid to liberalize the economy. The move led to the naira’s sharp and sudden devaluation, revealing overarching uncertainty about its strength. 

    This was a disaster for Nigerian startups, especially those that reported their revenue numbers in dollars (a given if foreign investors are on the cap table). The devaluation meant that similar revenue in naira from one month to another could render just half the value in dollars.

    If Nigerian startups had converted any USD from their funding rounds into naira, their buying power was also drastically slashed. From the investor’s point of view, the startup’s $USD valuation got trimmed almost overnight, due to factors outside the founders’ control. This also creates currency translation issues, making reporting of actual performance of ventures in local and USD currencies trickier and less reliable.

    This is not an issue in developed markets with stronger currencies and free capital flows, such as the US or Europe. It can be reasonably assumed that this issue has contributed to Nigeria’s drop in startup investment.

    To sum it all up: African venture capital is expensive because startups have to build out or deal with decrepit infrastructure hence requiring specific business models, and comparatively riskier since valuations are subject to currency-induced volatility.

    Source: Africa The Big Deal

    Fraud in African tech: an optical illusion?

    The past year was also punctuated by the downfall of some well-funded African startups, failures attributed to a nebulous mix of founder wrongdoing, financial mismanagement, and outright fraud. As is often the case, very few people will uncover the full story behind these crashes.

    Some observers were quick to generalize the trend, using these failures as proxies to gauge the integrity of all other African founders. Shady founders do and will always exist, regardless of the ecosystem’s maturity. There is an argument to be made that the safeguards against those founders are potentially lower in young ecosystems such as Africa, where governance standards have not yet been standardized and where investors are less aware of African markets’ specific features. That is a solvable problem.

    These are normal ecosystem growing pains that need to be rationally addressed but are no cause for doomsday rhetoric.

    What’s needed: liquidity

    Venture capital’s equation is simple: can you invest in startups that will exit, and will those exits return (much) more money than your LPs put in while creating economic value for the clients, suppliers, and all stakeholders?

    Exits, meaning a startup getting acquired or going public, are crucial to the venture capital ecosystem’s health. VCs are investing with the intention of outsized exits, but sometimes those turn out to be impossible. Adverse market conditions, a non-scalable business model, founder conflict… Exits can be jeopardized for various reasons.

    When such a situation arises, invested VCs will sometimes face the choice of either settling down for a smaller exit or losing their money outright. We believe that the importance of these small exits, such as “acquihires” should not be underestimated as they remain important for VCs required to distribute to their LPs. Typically, they will also provide cash-outs for angel investors, employees, public institutions, and founders. These cash-outs will hopefully convince these stakeholders to pour money back into the ecosystem, launching a virtuous flywheel.

    While the number of exits has been increasing on the continent, actual numbers of their combined value are hard to come through (many deals don’t disclose their terms). Briter Bridges also interestingly notes that the countries and sectors receiving the most amount of funding aren’t necessarily the ones with the most lucrative exit paths.

    Liquidity events are essential to Africa’s VC market. So far, most of the attention has gone toward fundraising numbers, a relevant proxy for market sentiment but not market viability or growth. More attention should be paid to the African exit market, its intricacies, its possibilities, and its obstacles.

    The future of African M&A

    An overwhelming majority of exits for African startups today entail a merger/acquisition (M&A). 

    Two African M&A trends are likely to materialize over the next couple of years.

    First is the consolidation of African startups operating in the same sector yet different geographies, and struggling to live up to the valuation they raised. The recent Wasoko-MaxAB merger announcement is an example of such.

    Second is the potential rise of “south-south” startup acquisitions. The socio-demographic similarities between emerging markets make the solution built in one place potentially applicable to another, even thousands of miles away. This seems to be truer for lesser regulated sectors, such as edtech or e-commerce, but harder for more supervised ones, like fintech. The recent Orcas-Baims acquisition is an example of such a deal.

    Players such as Brazil’s Ebanx, Estonia’s Bolt, and Russia’s Yango Delivery all operate in Africa and represent new competitors (and potential acquirers) for local African startups. This could stimulate the local M&A scene, but more importantly, entice other well-capitalized startups in emerging markets to expand to Africa.

    Conclusion

    Venture capital in Africa is a recent phenomenon, one whose success can’t yet be pronounced due to the sector’s long-term nature. These early years have highlighted the specificities of African venture capital, some of which aren’t relatable to more developed markets or even other emerging markets. This means copy-pasting Western frameworks in the African context is a faulty and lazy approach.

    Foreign and local VCs investing in African startups should seek to deeply understand the continent’s intricacies, and develop fresh strategies to deal with them.

    The ecosystem should give itself time. Adopting a longer-term view discounts short-term pessimism and allows one to rationally solve the challenges that arise. African venture capital can be a fantastic locomotive for African growth, but railroads don’t get built overnight. 

    As the Bambara saying puts it, munyu tè nimisa : one never regrets patience.

    This article was written for and exclusively published in the Realistic Optimist, a paid publication making sense of the recently globalized startup scene.

    About the Author

    Mathias Léopoldie is the co-founder of Julaya, an Ivory Coast-based startup that offers digital payment and lending accounts for African companies of all sizes. Julaya serves over 1,500 companies, processes $400M of transactions, and has raised $10M in funding.

    Julaya has offices in Benin, Senegal, France, and Ivory Coast.

    Mathias would like to thank Mohamed Diabi (CEO at AFRKN Ventures) and Hannah Subayi Kamuanga (Partner at Launch Africa Ventures) for their thorough advice on this piece.

  • Who is Fixing the Finance Gap in Africa?

    Who is Fixing the Finance Gap in Africa?

    Contributed by Yannick Deza, publisher of Data Bites.

    How data & technology are ushering a new era of business financing, from the lessons of M-Kopa to the success of Untapped Global.

    The Internet promised us a dematerialized society, where information, services, and money would travel through its digital rails at the speed of light.

    Software – with almost zero cost of replication and distribution – would be the new oil.

    The world would be a global village where prosperity & democracy would triumph.

    LMAO 😅

    There is some truth to this early 2000s tecno-optimism.

    I am writing this article from my bedroom. Thanks to LinkedIn, Substack, and Gmail, I can distribute my content for free and be part of global conversations.

    If I push hard on data analytics, I can learn how to better engage with my audience and eventually upsell a paid subscription (at best), or cross-sell healthy ginger drinks and productivity courses (at worst).

    How many gatekeepers have I avoided thanks to a bunch of geeks wearing pajamas, writing code in their dorms, and playing Dungeons & Dragons?

    And even if we zoom out and think about the continent, we can say the Internet Revolution has partly delivered on its promise. How many Africans have benefited from access to financial services, remote job opportunities, better & tailored education, and free entertainment? A whole lot!

    There is a problem with this story, though. The problem with the Digital Eden narrative is that it omits one crucial, underlying assumption: software is only useful when it sits “on top” of something.

    We don’t eat software, we don’t shelter with software, we don’t commute with software, we don’t irrigate our lands with software.

    Software enables, software improves. Software does not make.

    To say with the Maslow Pyramid: pure software is useful at the top, not at the bottom.

    You can leapfrog landline internet because everyone has a mobile phone, fine.

    But you can’t leapfrog the two fundamental layers on top of which software can unlock its benefits: physical assets and business structures, to move atoms & transform raw stuff.

    Digital technology comes as a booster/equalizer. We might not eat software, but we can improve the productivity of agricultural land with software. Sure, once we have functioning water pipes and businesses taking care of them.

    It is hard to move backward

    In short, as much as we’d love to live in the metaverse, the economy needs physical, productive assets to deliver your food to the table, your 🍑 to the office, and even your email to the server. And it needs business structures that organize these assets, maintain them, and invest in them, from microscopes to trucks to refrigerators.

    And…. here we come to the ❤️ of this article:

    1. In Africa, most of these “business structures” are small-sized, informal businesses.
    2. They desperately need financing to buy, upgrade, and maintain these physical assets.
    3. They can’t get it (SMEs’ finance gap accounts for $136 billion 🥲)

    So let me raise the following question then: if software cannot replace tractors & sewing machines, can it at least make us better at funding them? Can technology help us respond to African businesses’ capital needs?

    Big Problems 🗻 x Old Incumbents 👴🏽 =New Opportunities 🦋

    When we think of financing, we instinctively think of banks.

    In Africa, they don’t always have a good reputation.

    To cite Kwamena Afful, co-founder of Microtraction in an episode of The Flip:

    “African banks mobilize deposits from big enterprises, governments, and high net worth individuals, and deploy these deposits in treasury bills and federal debt. That’s their business model. They are not interested in lending to consumers or small businesses”.

    It’s a punchline, but there is some truth to it.

    Private credit levels are pretty low in Africa, and when it comes to SMEs, things get even dryer. As the infamous report from Proparco highlights, banks’ loans devoted to small firms in Africa “represent half of that of their counterparts in developing economies” (5% vs 13%). On top of that, only 68.7 % of SME loan applications are approved by banks in Africa, against 81.4 % in other developing countries.

    But wait: SMEs in the continent account for 40% of GDP and 80% of employment.

    So what are banks even doing with their time? Why don’t they just go out there and finance these businesses?

    Of course, the answer is “complex”. But apart from banks’ problems with upstream access to capital (read: global investor shying away and crazy high interest rates), I think the main reason is:

    • ineffective due diligence: the methodology used to assess the credit risk of the borrower
    • lack of data: the data input needed for the risk management models to work

    Let me clarify.

    You generally have 3 macro-categories of lending practice:

    • collateral-based lending
    • cash flow-based lending
    • relationship-based lending

    Collateral-based lending relies on tangible assets, such as real estate or equipment, that the borrower pledges as security for the loan.

    This is an obstacle for many SMEs in the continent as:

    • they lack eligible assets to pledge as collateral;
    • the value of collateral assets can be required to be up to 80-100% of the value of the loan (IFC);
    • movable assets – like inventory and receivables – are not accepted as collateral;
    • assets’ appraisal is complex and can lead to operational overhead and increased risk

    This makes collateral-based lending complex, expensive, and often unfeasible.

    Cash flow-based lending focuses on the borrower’s ability to generate sufficient cash flow from operations to meet debt obligations.

    To do that, you usually need two things:

    • income statements & balance sheets: to assess the future cash flows of the borrower
    • market data & market intelligence: to assess the health of the sector the company operates in

    Guess what? Both things are very hard to find in the context of African SMEs.

    Many SMEs barely maintain the financial records needed for income statements.

    And and if you’ve ever tried to do some market research on the region you know that market intelligence is non-parvenu.

    So what?

    Lack of collaterals and hard-to-predict cash flows make these businesses 1) riskier according to banks’ current credit risk models, and 2) costly, in terms of due diligence costs, which are not justified by the size of the loan.

    This is why, ultimately, African banks prefer to finance large enterprises (who usually don’t face these problems) and resort to relationship-based lending practices, which stress the borrower’s history, character, and overall trustworthiness developed through previous interactions.

    #saaaad 😢

    If we could find a way to lighten lending operations, access data more easily, and upgrade risk-management models, would we be able to finance more physical assets?

    Is there a way technology can help us overcome these challenges?

    Welcome to the world of “smart” assets… 🧠🛠️

    During the past decade, several companies have come up with unique approaches to solve the finance drought of the “unbanked.

    An interesting case, making the headlines for its innovative approach to financing, is Kenya’s gemstone: M-Kopa.

    They have pioneered a new way to finance high-value consumer goods such as off-grid solar systems, smartphones, TVs, and refrigerators.

    How did M-Kopa solve for lowering operations costs and improving data availability? With the clever combination of 3 technologies: mobile money, IoT (SIM cards) embedded in their products, and remote locking technologies.

    If I borrow a smartphone with M-Kopa:

    • the loan is secured by the asset provided, i.e. the smartphone;
    • I pay daily installments with mobile money;
    • If I fail to pay, a remote trigger will lock my phone, so that I won’t be able to use it anymore (except for charging money to pay the amount due 😅)

    The same holds for a solar system and any other product. Transparent data on assets’ usage and repayments, coupled with remote control over the asset, has proved an effective instrument in establishing initial trust with borrowers.

    My repayment rates are then used for credit scoring, enabling me to access further cash loans once the smartphone is paid in full, with the phone resecured as collateral (again).

    As simple as it seems, this model alone unleashed a lot of money and a lot of impact. As the GSMA report says:

    “The explosive rise of pay-as-you-go (PAYG) in the off-grid energy sector, for example, has played a significant role in widening access to energy. Combining mobile money systems with machine-to-machine (M2M) communication and remote locking has made off-grid energy products more accessible and affordable to billions worldwide, bringing power for the first time to 25-30 million people worldwide between 2015 and 2020”

    The recipe for success: a mix of operational excellence, IoT technology, and digital payments.

    Great!

    While this model proved valuable for consumers, we must remember that we want to finance businesses!

    M-Kopa lends essentials with a relatively low price tag.

    Is there a way we can draw from the lessons of this model and apply them to finance physical, productive assets that cost more money?

    …& the world of Untapped’s smart financing 🧠✨

    Back in 2021, I tried to put money into an investing vehicle by the name of Untapped Global.

    I was intrigued by their model as it combined all the ingredients I was looking for at the time: a data-driven approach; a high-returns portfolio; and a tangible, positive social impact.

    It turned out that I wasn’t an accredited investor and I couldn’t invest with them (sigh 😞), so I eventually ended up switching to Daba (who I didn’t know yet at the time).

    However, I’ve kept an eye on them over the years, until I could finally sit down with Lundie Strom, Untapped’s Investor Relations & Partnerships Head, to chat and get a better overview of their model.

    The fascinating conversation that followed convinced me that they may be on the right track: taking the best of M-Kopa and adding their own twist to it.

    I’ll go through what I consider to be the four pillars of their model:

    • Revenue-share
    • Operating partners
    • Iterative approach
    • Real-time data

    1) Revenue-based financing 💸💸💸

    One of Africa’s most-funded startups, Moove, recently made the headlines as it received a 100M investment from Uber, valuing the company at 750M.

    Its main business model? Revenue-based vehicle financing.

    In a revenue-based financing (or revenue-share) agreement, a business receives funding in exchange for a percentage of its future revenue until a specified amount is repaid.

    Instead of a fixed amount of money (+ interest rate) to be paid at regular intervals, as with traditional loans, revenue-share repayments fluctuate with the business’s income, providing flexibility during low-revenue periods and faster repayment times during bonanza: investors’ returns are aligned with the company’s performance.

    In the case of Moove, they finance cars for Uber drivers. The loan is repaid with a share of the revenues the Uber driver makes: as simple as that.

    At a high level, Untapped does the same. It finances productive assets and gets paid back with the revenues these assets generate.

    What type of assets does Untapped finance? Cars? Motorbikes? Generators? Well, all of them. It doesn’t really matter.

    And here is what distinguishes Untapped from Moove, and what makes their model more interesting and more scalable.

    2) Operating partners ⛑️⛑️⛑️

    Moove is good at financing cars for Uber drivers. It is not a trivial task and they had to become good at it.

    Why? Two reasons.

    First ☝🏽, managing a fleet of vehicles demands domain expertise and operational overhead.

    Moove needs to develop proprietary tech & manage the integration with Uber to have visibility on how the vehicles are utilized, how much revenue is generated, and receive timely payments. It is a lot of plumbing.

    They also need to partner with car manufacturers for steady supply & support services, and create a system to onboard drivers and evaluate their creditworthiness and performance. Again, a lot of plumbing.

    Second ✌🏽, Moove itself is subject to credit risk. They don’t purchase the vehicles from their balance sheet money: it would be too capital-intensive. They have to take up loans/financing from creditors. And given they offer revenue-share deals to their drivers, they have to juggle between variable repayments from drivers vs fixed installments they owe their creditors.

    This is the main reason we don’t see many companies like Moove around. While revenue-share agreements are attractive to drivers, part of their business risk rolls up to the company borrowing them.

    Now, how does Untapped fit in this picture?

    “We don’t know how to manage a fleet of vehicles”, says Lundie.

    “We partner with the likes of Moove, who know the realities on the ground, and relieve them from part of their credit risk by striking a revenue-share agreement with them”.

    “We don’t want to replace Moove. We want to invest in dozens of the best Mooves across multiple industries, geographies, currencies – and be their complementary source of capital”.

    In this sense, an operating partner is a company focused on one vertical (like Moove with cars).

    No matter if, instead of cars, the company is financing electric bikes, solar-powered irrigation equipment, smart refrigerators, or thermal printers. As long as it:

    • knows how to manage operations on the ground, and
    • has the technical skills to collect & integrate data from the assets and the underlying businesses

    Untapped can invest in it!

    As a result, the interests of all the actors, from the drivers to the Mooves, to the ultimate investors in the physical assets, are aligned. Aligned along what? Well, the revenues the assets generate!

    A little sketch:

    Ok cool, so how does Untapped manage its own risk?

    3) Iterative approach 🌀🌀🌀

    “We always invest in two stages. No matter the size of the company, at the beginning every operating partner starts with a pilot”.

    This means $50-100k as a first check for a 4 to 6-month period: “We put money in your hands and see what you can do”.

    In practice, this helps the team tick some boxes: how many assets can you deploy? What is the quality of your data? Can you integrate data with our platform? Can you pay it back in time?

    If the results are good, the company enters a scaleup stage, where investments range from 500k to 5M.

    At this stage, the operating partner is expected to have already managed the data integration and be working on the payment integration, which is the hardest part (moving money from local wallets in Ghana to local wallets in the US, for example).

    Out of 59 companies, only 7 have entered the scaleup phase.

    “Our goal is to really pick up the best ones, those who need 5 million a year, and can achieve that scale and the impact”.

    This approach of spreading the seeds and harvesting the good ones allows Untapped to manage risk efficiently while gathering loads of data.

    And it’s ultimately in the data that lies the core competitive advantage of this model.

    4) Real-time data 📈📈📈

    Imagine a world where, when you invest in an African entrepreneur, you can have visibility on where each asset is deployed and how much money it’s making, in real-time. This is the vision of the Smart Asset Financing platform developed by Untapped.

    How hard is it to integrate data from assets and businesses across different regions?

    “This is our real edge. We want to be tech-driven, so our data team is working to do what currently no one is doing”.

    What no one is doing is the following:

    • integrate data from physical assets
    • with data from underlying businesses using these assets (i.e. revenues),
    • from multiple operating partners who deployed them (i.e. tens of Moove, across business verticals);

    To do what?

    • Monitor your entire portfolio in real-time,
    • paying your investors as the money comes in,
    • develop proprietary risk management models

    To me, it sounds a bit like a command center, where you can say: “OK, we financed 10,000 entrepreneurs. What is happening on the ground? How well the money is moving around? How much are we making? Should we scale back on something?”

    It’s a pretty compelling vision.

    The question then is, how far are we from a world like this?

    “Data integration and especially payment integration, is still hard. We need to provide technical assistance to some of our earlier stage operating partners because not everyone has those capabilities yet”. Also, “moving money from local wallets to regional wallets to the US, is still a headache, and a problem that no one completely solved yet”.

    Smart Asset Financing is the first iteration aiming to deliver on this promise, and challenges of this kind can only be solved with tunnel vision.

    So what’s in it for us? 🤷🏽🤷🏽🤷🏽

    After the conversation I had with Lundie, my brain was like “There needs to be more of this”. If we take it back from where we started, it’s a no-brainer.

    SMEs are the lifeblood of the African economy.

    To continue delivering products and services each of us needs, they need capital to purchase and maintain physical assets.

    IoT, digital payments, and the smart distribution of risk & operational overhead have paved the way in solving the two major bottlenecks preventing traditional banks from helping them: credit risk modeling and data availability.

    Untapped has worked its way through novel ways of addressing this challenge. Others are doing that too. We need to learn from them, copy and iterate.

    How much more wealth would there be if there wasn’t just one Moove, but one hundred Mooves?

    How much more resilient our economies would be, if, instead of just cars, we could finance irrigation systems, trucks, and medical devices?

    I don’t know, but I definitely want to hear more stories like this.

  • SMB améliore ses résultats malgré une baisse des revenus

    SMB améliore ses résultats malgré une baisse des revenus

    Rapport d’activité de Société Multinationale de Bitumes (SMB) Côte d’Ivoire pour le premier trimestre 2024.

    Malgré une légère baisse des revenus due à la conclusion des projets liés à la Coupe d’Afrique des Nations (CAN) 2023, l’entreprise a montré sa résilience et une forte rentabilité.

    Dans ce qui suit, nous analysons la performance financière de SMB et son importance pour les investisseurs potentiels.

    Points financiers marquants

    Principaux indicateurs financiers :

    Chiffre d’affaires :

    • T1 2024 : 70 179
    • T1 2023 : 72 331
    • Variation : -3 % (2 152)

    Résultat des activités ordinaires :

    • T1 2024 : 4 447
    • T1 2023 : 3 502
    • Variation : +27 % (945)

    Résultat net :

    • T1 2024 : 2 922
    • T1 2023 : 2 553
    • Variation : +14,5 % (369)

    Principaux points à retenir

    Analyse des revenus

    Les revenus de SMB pour le T1 2024 ont diminué de 3 % par rapport au T1 2023, principalement en raison de la baisse des ventes de bitume sur le marché national suite à l’achèvement des projets liés à la CAN 2023.

    Cependant, le marché d’exportation a contribué à compenser cette baisse, réduisant ainsi l’impact global sur les revenus.

    Rentabilité

    Malgré la baisse des revenus, SMB a réalisé une augmentation impressionnante de 27 % du résultat des activités ordinaires, atteignant 4 447 millions de FCFA.

    Cette croissance significative est attribuée à un contexte économique plus favorable pour le raffinage, avec un indicateur de marge de 5,96 $ par baril contre 2,37 $ par baril au T1 2023.

    Le résultat net a également augmenté de 14,5 %, atteignant 2 922 millions de FCFA. Cette croissance reflète une gestion efficace des coûts et une amélioration de la rentabilité face à des conditions de marché difficiles.

    Perspectives stratégiques pour SMB

    Dynamique du marché

    La demande nationale de bitume a diminué au T1 2024 en raison de l’achèvement des projets liés à la CAN 2023. Cependant, la mise en œuvre du programme routier du gouvernement dans le cadre du Plan National de Développement (PND) 2020-2025 devrait stimuler la croissance de la demande dans les trimestres à venir.

    Efficacité opérationnelle

    Les marges de raffinage favorables ont considérablement boosté la marge brute et la rentabilité globale de SMB. La capacité de l’entreprise à capitaliser sur les opportunités d’exportation a atténué l’impact de la réduction des ventes nationales.

    Perspectives d’avenir

    SMB est bien positionnée pour bénéficier de l’augmentation anticipée de la demande nationale de bitume à mesure que les projets d’infrastructure du gouvernement prendront de l’ampleur. L’accent mis sur l’efficacité opérationnelle et l’expansion stratégique du marché soutiendra la croissance durable.

    Performance boursière de SMB

    SMB Côte d’Ivoire est actuellement la 21e action la plus valorisée de la BRVM avec une capitalisation boursière de 100 milliards de FCFA, soit environ 1,13 % du marché boursier.

    SMB a commencé l’année avec un prix de l’action de 10 530 FCFA et a depuis gagné 22 % sur cette valorisation, la classant neuvième sur la BRVM en termes de performance depuis le début de l’année.

    Il est important de noter que l’action a accumulé 7 % au cours des quatre dernières semaines, la septième meilleure performance sur cette période.

    Ce que cela signifie pour les investisseurs

    La performance de SMB au T1 2024 met en évidence la résilience et le potentiel de l’industrie du bitume en Côte d’Ivoire. La capacité de l’entreprise à réaliser une forte rentabilité malgré des défis en matière de revenus souligne son cadre opérationnel robuste et son sens stratégique.

    Pour les investisseurs potentiels, SMB présente une opportunité d’investissement convaincante. Les solides performances financières de l’entreprise, sa gestion efficace des coûts et son accent stratégique sur l’expansion du marché en font une option attrayante pour ceux qui cherchent à investir dans le secteur de la construction et des infrastructures en Afrique.

    Les investisseurs peuvent facilement acheter et négocier des actions de la BRVM telles que SMB en utilisant la plateforme mobile Daba. Elle offre un moyen pratique d’investir dans des actions performantes sur la BRVM, offrant un accès à des marchés dynamiques et en forte croissance.

    Avec Daba Pro, nos investisseurs repèrent des opportunités dans des actions comme celle-ci avant qu’elles ne montent en flèche, leur assurant de rester en avance sur le marché et de prendre des décisions d’investissement éclairées. Cliquez ici pour vous abonner maintenant.

    Conclusion

    Le rapport du T1 2024 de SMB reflète une solide santé financière avec une croissance significative du résultat des activités ordinaires et du résultat net. La gestion efficace des coûts de l’entreprise et son accent stratégique sur l’amélioration des marges de raffinage et la capitalisation sur les opportunités d’exportation la positionnent bien pour un succès continu.

    Pour les investisseurs, les performances impressionnantes de la société et ses initiatives stratégiques soulignent son potentiel de croissance et de rentabilité à long terme.

    Des plateformes comme Daba offrent un moyen pratique d’investir dans SMB et d’autres actions performantes de la BRVM, offrant un accès à des opportunités d’investissement prometteuses sur les marchés dynamiques de l’Afrique.

    Embrassez l’avenir de la croissance économique de l’Afrique et explorez les nombreuses opportunités d’investissement disponibles sur ce continent résilient et prometteur avec Daba.

  • SMB Improves Bottom Line Despite Dip in Revenue

    SMB Improves Bottom Line Despite Dip in Revenue

    Inside Société Multinationale de Bitumes (SMB) Côte d’Ivoire’s activity report for the first quarter of 2024.

    Despite facing a slight dip in revenue due to the conclusion of projects related to the Africa Cup of Nations (AFCON or CAN in French) 2023, the company showed resilience and strong profitability.

    In the following, we dive into SMB’s financial performance and its significance for potential investors.

    Financial Highlights

    Key Financial Metrics:

    Revenue (Chiffre d’affaires):

    • Q1 2024: 70,179
    • Q1 2023: 72,331
    • Change: -3% (2,152)

    Operating Income (Résultat des activités ordinaires):

    • Q1 2024: 4,447
    • Q1 2023: 3,502
    • Change: +27% (945)

    Net Income (Résultat net):

    • Q1 2024: 2,922
    • Q1 2023: 2,553
    • Change: +14.5% (369)

    Key Insights

    Revenue Analysis

    SMB’s revenue for Q1 2024 decreased by 3% compared to Q1 2023, primarily due to the decline in bitumen sales on the national market following the completion of AFCON 2023-related projects.

    However, the export market helped offset this decline, reducing the overall impact on revenue.

    Profitability

    Despite the drop in revenue, SMB achieved an impressive 27% increase in operating income, reaching 4,447 million FCFA.

    This significant growth is attributed to a more favorable economic context for refining, with a margin indicator of $5.96 per barrel compared to $2.37 per barrel in Q1 2023.

    Net income also rose by 14.5%, reaching 2,922 million FCFA. This growth reflects effective cost management and improved profitability in the face of challenging market conditions.

    Strategic Outlook for SMB

    Market Dynamics

    The national demand for bitumen decreased in Q1 2024 due to the completion of AFCON 2023 projects. However, the implementation of the government’s road program as part of the National Development Plan (PND) 2020-2025 is expected to drive demand growth in the upcoming quarters.

    Operational Efficiency

    The favorable refining margins have significantly boosted SMB’s gross margin and overall profitability. The company’s ability to capitalize on export opportunities has mitigated the impact of reduced national sales.

    Future Prospects

    SMB remains well-positioned to benefit from the anticipated increase in national bitumen demand as the government’s infrastructure projects gain momentum. The focus on operational efficiency and strategic market expansion will support sustained growth.

    SMB CI Stock Performance

    SMB Côte d’Ivoire is currently the 21st most valuable stock on the BRVM with a market capitalization of XOF 100 billion, which is about 1.13% of the stock market.

    SMB began the year with a share price of 10,530 XOF and has since gained 22% on that price valuation, ranking it ninth on the BRVM in terms of year-to-date performance.

    Important to note that the stock has accrued 7% over the past four-week period, the seventh best over that period.

    What This Means For Investors

    SMB’s performance in Q1 2024 highlights the resilience and potential of the bitumen industry in Côte d’Ivoire. The company’s ability to achieve strong profitability despite revenue challenges underscores its robust operational framework and strategic acumen.

    For potential investors, SMB presents a compelling investment opportunity. The company’s solid financial performance, effective cost management, and strategic focus on market expansion make it an attractive option for those looking to invest in the African construction and infrastructure sector.

    Investors can easily buy and trade BRVM stocks like SMB using the Daba mobile platform. It offers a convenient way to invest in high-performing stocks on the BRVM, providing access to dynamic and rapidly growing markets.

    With Daba Pro, our investors spot opportunities in stocks like this before they rally, ensuring they stay ahead of the market and make informed investment decisions. Tap here to subscribe now.

    Conclusion

    SMB’s Q1 2024 report reflects strong financial health with significant growth in operating and net income. The company’s effective cost management and strategic focus on enhancing refining margins and capitalizing on export opportunities position it well for continued success.

    For investors, the company’s impressive stock performance and strategic initiatives highlight its potential for long-term growth and profitability.

    Platforms like Daba offer a convenient way to invest in SMB and other high-performing BRVM stocks, providing access to promising investment opportunities in Africa’s dynamic markets.

    Embrace the future of Africa’s economic growth and explore the myriad investment opportunities available in this resilient and promising continent with Daba.

  • SIBC au T1 2024 : Une solide performance dans un marché dynamique

    SIBC au T1 2024 : Une solide performance dans un marché dynamique

    La Société Ivoirienne de Banque (SIBC) a publié son rapport d’activité pour le premier trimestre 2024.

    Malgré des conditions économiques difficiles, la banque a démontré sa résilience avec des indicateurs clés de rentabilité en croissance par rapport au premier trimestre 2023.

    Cette analyse offre un regard approfondi sur la performance financière de la SIBC et ses perspectives stratégiques pour les investisseurs potentiels.

    Points financiers marquants

    Principaux indicateurs financiers :

    Produit Net Bancaire :

    • T1 2024 : 24,0
    • T1 2023 : 23,7
    • Variation : +2 % (0,6)

    Résultat avant impôts :

    • T1 2024 : 14,0
    • T1 2023 : 14,3
    • Variation : -2 % (0,3)

    Résultat net :

    • T1 2024 : 12,0
    • T1 2023 : 11,6
    • Variation : +6 % (0,7)

    Les valeurs sont en milliards de FCFA.

    Principaux points à retenir

    Croissance des revenus :

    SIBC a atteint un Produit Net Bancaire de 24 milliards FCFA au T1 2024, reflétant une augmentation de 2 % par rapport au T1 2023. Cette croissance est principalement due à la solide performance de la marge d’intérêt client et des commissions de service.

    Rentabilité :

    Le résultat net de la banque a atteint 12 milliards FCFA, marquant une augmentation de 6 % par rapport au T1 2023. Cette amélioration est attribuée à une gestion efficace des coûts et à une gestion robuste des risques.

    Gestion des coûts :

    La légère baisse du résultat avant impôts (-2 %) indique des défis dans le maintien de la rentabilité avant impôts. Cependant, la croissance positive du résultat net global suggère que la banque a bien géré ses dépenses opérationnelles et maintenu une structure de coûts solide.

    Perspectives stratégiques

    Dynamique commerciale :

    La SIBC continue de montrer un fort dynamisme commercial, comme en témoigne la croissance régulière du Produit Net Bancaire. L’accent mis sur l’amélioration des marges d’intérêt client et des commissions de service a été un facteur clé de ce succès.

    Gestion des risques :

    Une gestion efficace des coûts opérationnels et le maintien d’un coût du risque stable ont contribué de manière significative à la rentabilité de la banque. Cela démontre la capacité de la SIBC à naviguer efficacement dans des conditions économiques difficiles.

    Perspectives d’avenir :

    Les équipes de la SIBC restent déterminées à atteindre les objectifs financiers pour l’exercice en cours. Le maintien de la croissance des revenus, la gestion des coûts et le contrôle des risques positionnent bien la banque pour une rentabilité durable.

    Performance boursière de la SIBC

    La Société Ivoirienne de Banque (SIBC) est actuellement la cinquième action la plus valorisée de la BRVM avec une capitalisation boursière de 336 milliards FCFA, soit environ 3,79 % de l’ensemble du marché.

    SIBC a commencé l’année avec un prix de l’action de 5 350 FCFA et a depuis gagné 25,6 % sur cette valorisation, la classant huitième sur la BRVM en termes de performance depuis le début de l’année.

    Cette performance boursière impressionnante reflète les solides résultats financiers de la banque. Les actionnaires peuvent être optimistes quant aux perspectives futures de la SIBC compte tenu de sa trajectoire de croissance solide.

    Société Ivoirienne de Banque (SIBC) is currently the fifth most valuable stock on the BRVM with a market capitalization of XOF 336 billion

    Ce que cela signifie pour les investisseurs potentiels

    La solide performance de la SIBC au T1 2024 souligne la résilience et le potentiel du secteur bancaire ivoirien.

    La capacité de la banque à réaliser une croissance des revenus et à améliorer sa rentabilité malgré des défis économiques met en évidence son cadre opérationnel solide et son sens stratégique.

    Pour les investisseurs potentiels, la SIBC présente une opportunité d’investissement prometteuse. Les solides performances financières de la banque, sa gestion efficace des coûts et son accent stratégique sur l’amélioration des revenus en font une option attrayante pour ceux qui cherchent à investir dans le secteur bancaire africain.

    Les investisseurs peuvent facilement acheter et négocier des actions de la BRVM telles que la SIBC en utilisant la plateforme mobile Daba. Daba offre un moyen pratique d’investir dans des actions performantes sur la BRVM, offrant un accès à des marchés dynamiques et en forte croissance.

    Alors que certains investisseurs ont peut-être manqué ce rallye, Daba Pro est conçu pour vous aider à repérer des opportunités comme celle-ci à l’avance, vous assurant de rester en avance sur le marché et de prendre des décisions d’investissement éclairées.

    Conclusion

    Le rapport du T1 2024 de la SIBC reflète une solide santé financière avec une croissance significative du résultat net et une expansion régulière des revenus. La gestion efficace des coûts de la banque et son accent stratégique sur l’amélioration des marges client et des commissions de service la positionnent bien pour un succès continu.

    Pour les investisseurs, les performances impressionnantes de la société et ses initiatives stratégiques soulignent son potentiel de croissance et de rentabilité à long terme. Des plateformes comme Daba offrent un moyen pratique d’investir dans la SIBC et d’autres actions performantes de la BRVM, offrant un accès à des opportunités d’investissement prometteuses sur les marchés dynamiques de l’Afrique.

    Embrassez l’avenir de la croissance économique de l’Afrique et explorez les nombreuses opportunités d’investissement disponibles sur ce continent résilient et prometteur avec Daba.

  • SIBC in Q1 2024: Strong Showing in a Dynamic Market

    SIBC in Q1 2024: Strong Showing in a Dynamic Market

    Société Ivoirienne de Banque (SIBC) has published its activity report for the first quarter of 2024.

    Despite challenging economic conditions, the bank has demonstrated resilience with key profitability indicators showing growth compared to the first quarter of 2023.

    This analysis provides an in-depth look at SIBC’s financial performance and strategic outlook for potential investors.

    Financial Highlights

    Key Financial Metrics:

    Net Banking Income (Produit Net Bancaire):

    • Q1 2024: 24.0
    • Q1 2023: 23.7
    • Change: +2% (0.6)

    Pre-Tax Income (Résultat avant impôts):

    • Q1 2024: 14.0
    • Q1 2023: 14.3
    • Change: -2% (0.3)

    Net Income (Résultat net):

    • Q1 2024: 12.0
    • Q1 2023: 11.6
    • Change: +6% (0.7)

    Values are in billions of FCFA.

    Key Insights

    Revenue Growth:

    SIBC achieved a Net Banking Income of 24 billion FCFA in Q1 2024, reflecting a 2% increase compared to Q1 2023. This growth is primarily driven by the strong performance of the client interest margin and service commissions.

    Profitability:

    The bank’s net income reached 12 billion FCFA, marking a 6% increase over Q1 2023. This improvement is attributed to effective cost control and robust risk management.

    Cost Management:

    The slight decline in pre-tax income (-2%) indicates challenges in maintaining pre-tax profitability. However, the overall positive net income growth suggests that the bank managed its operating expenses well and maintained a strong cost structure.

    Strategic Outlook

    Commercial Dynamics:

    SIBC continues to exhibit strong commercial momentum, as evidenced by the steady growth in Net Banking Income. The focus on enhancing client interest margins and service commissions has been a key driver of this success.

    Risk Management:

    Effective management of operating costs and maintaining a stable risk cost have contributed significantly to the bank’s profitability. This demonstrates SIBC’s capability to navigate challenging economic conditions effectively.

    Future Prospects:

    SIBC’s teams remain committed to achieving the financial objectives for the ongoing fiscal year. The continued focus on revenue growth, cost management, and risk control positions the bank well for sustained profitability.

    SIBC Stock Performance

    Société Ivoirienne de Banque (SIBC) is currently the fifth most valuable stock on the BRVM with a market capitalization of XOF 336 billion, which is about 3.79% of the entire market.

    SIBC began the year with a share price of 5,350 XOF and has since gained 25.6% on that price valuation, ranking it eighth on the BRVM in terms of year-to-date performance.

    This impressive stock performance mirrors the bank’s strong financial results. Shareholders can be optimistic about SIBC’s future prospects given its solid growth trajectory.

    What This Means for Potential Investors

    SIBC’s robust performance in Q1 2024 underscores the resilience and potential of the Ivorian banking sector.

    The bank’s ability to achieve revenue growth and improve profitability despite economic challenges highlights its strong operational framework and strategic acumen.

    For potential investors, SIBC presents a promising investment opportunity. The bank’s solid financial performance, effective cost management, and strategic focus on revenue enhancement make it an attractive option for those looking to invest in the African banking sector.

    Investors can easily buy and trade BRVM stocks like SIBC using the Daba mobile platform. Daba offers a convenient way to invest in high-performing stocks on the BRVM, providing access to dynamic and rapidly growing markets.

    While some investors may have missed out on this rally, Daba Pro is designed to help you spot opportunities like this beforehand, ensuring you stay ahead of the market and make informed investment decisions.

    Conclusion

    SIBC’s Q1 2024 report reflects strong financial health with significant growth in net income and steady revenue expansion. The bank’s effective cost management and strategic focus on enhancing client margins and service commissions position it well for continued success.

    For investors, the company’s impressive performance and strategic initiatives highlight its potential for long-term growth and profitability. Platforms like Daba offer a convenient way to invest in SIBC and other high-performing BRVM stocks, providing access to promising investment opportunities in Africa’s dynamic markets.

    Embrace the future of Africa’s economic growth and explore the myriad investment opportunities available in this resilient and promising continent with Daba.

  • Qu’est-ce que l’investissement providentiel ? Un guide complet

    Qu’est-ce que l’investissement providentiel ? Un guide complet

    Les investisseurs providentiels sont généralement des individus fortunés qui fournissent du capital aux startups à leurs débuts, souvent lorsque le risque est le plus élevé.

    Dans le monde du capital-risque, l’investissement providentiel est une forme de soutien financier provenant de personnes fortunées ou à valeur nette élevée pour les startups et les petites entreprises en phase de démarrage. Ces investisseurs, appelés anges, offrent du capital en échange de parts de propriété ou de dettes convertibles.

    L’investissement providentiel joue un rôle crucial dans l’écosystème des startups en fournissant le financement et le mentorat nécessaires pour que les jeunes entreprises puissent se développer et réussir.

    Dans ce blog, nous explorons ce qu’est l’investissement providentiel, son fonctionnement, ses avantages et ses risques, et comment vous pouvez vous impliquer en utilisant des plateformes comme l’application Daba.

    Lire aussi : Un guide de l’investisseur providentiel pour investir dans les startups

    Comprendre l’investissement providentiel

    Les investisseurs providentiels sont généralement des individus fortunés qui fournissent du capital aux startups à leurs débuts, souvent lorsque le risque est le plus élevé.

    Contrairement aux capital-risqueurs qui gèrent des fonds collectifs, les investisseurs providentiels utilisent leur propre argent. Ils apportent non seulement des ressources financières, mais aussi une expérience précieuse, du mentorat et des réseaux aux startups dans lesquelles ils investissent.

    Caractéristiques clés de l’investissement providentiel :

    Focalisation sur les premières étapes : Les anges investissent dans les startups au tout début de leur parcours, souvent avant qu’elles n’aient un modèle d’affaires prouvé ou des revenus significatifs.

    Participation au capital : En échange de leur investissement, les anges reçoivent des parts de propriété dans l’entreprise, alignant leur succès sur la croissance de la startup.

    Risque élevé, récompense élevée : L’investissement providentiel est intrinsèquement risqué, car de nombreuses startups échouent. Cependant, les investissements réussis peuvent offrir des rendements substantiels.

    Comment fonctionne l’investissement providentiel

    Le processus d’investissement providentiel implique généralement plusieurs étapes :

    Identification des opportunités : Les anges identifient des opportunités d’investissement potentielles par divers canaux, notamment les réseaux personnels, les événements de startups et les plateformes en ligne comme Daba, qui connecte les investisseurs aux startups africaines prometteuses.

    Diligence raisonnable : Avant d’investir, les anges effectuent une diligence raisonnable approfondie pour évaluer le modèle d’affaires de la startup, son potentiel de marché, sa santé financière et les capacités de l’équipe fondatrice.

    Accord d’investissement : Une fois satisfaits de leur évaluation, les anges négocient les termes de l’investissement, y compris le montant du capital, le pourcentage de parts et toute autre condition. Cet accord est formalisé dans un document juridique.

    Soutien : Au-delà du soutien financier, les anges jouent souvent un rôle actif dans la startup en offrant du mentorat, des conseils stratégiques et un accès à leur réseau.

    Stratégie de sortie : Les anges cherchent généralement à sortir de leur investissement dans les 5 à 10 ans, par des méthodes telles que la vente de leurs actions lors d’une acquisition de l’entreprise, un rachat ou une introduction en bourse (IPO).

    Lire aussi : 15 indicateurs à connaître pour investir dans les startups africaines en 2024

    Avantages de l’investissement providentiel

    L’investissement providentiel offre plusieurs avantages tant pour l’investisseur que pour la startup :

    Pour les investisseurs providentiels :

    Rendements élevés : Les investissements réussis peuvent offrir des rendements financiers élevés, souvent supérieurs aux véhicules d’investissement traditionnels.

    Diversification : Investir dans les startups permet aux anges de diversifier leur portefeuille d’investissements.

    Satisfaction personnelle : De nombreux anges trouvent une satisfaction à aider les entrepreneurs à réaliser leurs rêves et à contribuer à la croissance économique.

    Pour les startups :

    Financement précoce : Les investissements providentiels fournissent le capital crucial en phase de démarrage que de nombreuses startups ont du mal à sécuriser.

    Mentorat et conseils : Les anges apportent une expérience et des conseils précieux, aidant les startups à surmonter les défis et à croître.

    Opportunités de réseautage : Les réseaux des anges peuvent ouvrir des portes à un financement supplémentaire, des partenariats et des opportunités de marché.

    Risques de l’investissement providentiel

    Bien que les récompenses potentielles soient importantes, l’investissement providentiel comporte des risques :

    Taux d’échec élevé : Un grand pourcentage de startups échouent, entraînant une perte totale du capital investi.

    Illiquidité : Les investissements sont souvent bloqués pendant plusieurs années, ce qui rend difficile l’accès rapide au capital.

    Volatilité du marché : Les startups sont vulnérables aux changements du marché, aux évolutions réglementaires et aux ralentissements économiques, ce qui peut affecter leurs performances.

    Étude de cas : Succès de GreenLeaf AgriTech

    Pour illustrer le potentiel de l’investissement providentiel, considérons une étude de cas fictive de GreenLeaf AgriTech, une startup agricole innovante au Kenya.

    Contexte : GreenLeaf AgriTech a été fondée en 2018 par trois jeunes entrepreneurs avec une vision de révolutionner l’agriculture au Kenya grâce à des solutions agritech avancées. Malgré leur technologie innovante et un plan d’affaires solide, ils ont eu du mal à sécuriser les fonds nécessaires pour développer leurs opérations.

    Investissement providentiel : Début 2019, GreenLeaf AgriTech a été mis en relation avec une investisseuse providentielle, Sarah, via l’application Daba. Impressionnée par leur approche innovante et le potentiel d’impact sur le secteur agricole kenyan, Sarah a décidé d’investir 100 000 $ en échange de 10 % de parts.

    Impact : L’investissement de Sarah a permis à GreenLeaf AgriTech de :

    Développer et affiner leur technologie, conduisant à une amélioration des rendements agricoles et à une réduction de l’utilisation de l’eau.
    Étendre leurs opérations pour servir plus d’agriculteurs à travers le Kenya.
    Attirer des financements supplémentaires de la part de capital-risqueurs.

    Mentorat et conseils : Au-delà du soutien financier, Sarah a fourni un mentorat précieux, aidant les fondateurs à surmonter les défis commerciaux et à se connecter avec des acteurs clés de l’industrie. Son réseau a ouvert des portes à des partenariats stratégiques, accélérant encore la croissance de la startup.

    Stratégie de sortie : En 2024, GreenLeaf AgriTech avait considérablement grandi, attirant l’attention d’une grande entreprise agroalimentaire. L’entreprise a été acquise pour 10 millions de dollars, offrant à Sarah un rendement substantiel sur son investissement initial.

    Résultat : L’investissement de 100 000 $ de Sarah s’est transformé en une sortie de 1 million de dollars, illustrant le potentiel de récompense élevée de l’investissement providentiel. De plus, le succès de GreenLeaf AgriTech a eu un impact positif sur le secteur agricole kenyan, bénéficiant à de nombreux agriculteurs.

    Lire aussi : Comment gagner de l’argent en investissant dans les startups africaines

    Se lancer dans l’investissement providentiel

    Si vous êtes intéressé par devenir un investisseur providentiel, voici quelques étapes pour vous aider à commencer :

    Informez-vous : Apprenez les bases de l’investissement providentiel, y compris les risques, les récompenses et les meilleures pratiques. De nombreuses ressources en ligne, livres et cours sont disponibles pour vous aider à développer vos connaissances.

    Rejoignez un réseau d’investissement providentiel : Rejoindre un réseau ou un groupe d’investissement providentiel peut fournir un accès à des opportunités d’investissement vérifiées et un soutien précieux de la part de pairs. L’application Daba propose un groupe d’investissement providentiel qui connecte les investisseurs aux startups africaines à fort potentiel, offrant une plateforme pour collaborer et partager des idées.

    Commencez petit : Commencez avec de petits investissements pour acquérir de l’expérience et renforcer votre confiance. À mesure que vous devenez plus à l’aise, vous pouvez augmenter la taille et le nombre de vos investissements.

    Utilisez la technologie : Utilisez des plateformes d’investissement comme l’application Daba pour découvrir et évaluer les opportunités de startups. L’application offre des informations détaillées sur le marché et un processus d’investissement simplifié, facilitant la recherche et l’investissement dans des startups prometteuses.

    Demandez des conseils professionnels : Envisagez de consulter des conseillers financiers ou des mentors ayant de l’expérience dans l’investissement providentiel. Leurs conseils peuvent vous aider à prendre des décisions éclairées et à éviter les pièges courants.

    Comment Daba peut aider

    Notre plateforme offre une solution complète pour les investisseurs providentiels aspirants et expérimentés cherchant à explorer des opportunités en Afrique. Voici comment Daba peut soutenir votre parcours d’investissement providentiel :

    Opportunités d’investissement sélectionnées : Daba fournit un accès à une liste soigneusement sélectionnée de startups africaines à fort potentiel, vous faisant gagner du temps et des efforts dans la recherche d’investissements intéressants.

    Analyses détaillées : L’application propose des analyses approfondies et des informations sur chaque startup, vous aidant à prendre des décisions d’investissement éclairées.

    Groupe d’investissement providentiel : Rejoignez le groupe d’investissement providentiel sur Daba pour vous connecter avec des investisseurs partageant les mêmes idées, partager des expériences et collaborer sur des investissements.

    Commencez votre parcours d’investissement providentiel

    L’investissement providentiel est un moyen puissant de soutenir des startups innovantes tout en potentiellement réalisant des rendements significatifs. En fournissant du capital en phase de démarrage, du mentorat et des conseils stratégiques, les investisseurs providentiels jouent un rôle vital dans le succès des entreprises émergentes.

    Que vous soyez novice dans l’investissement providentiel ou que vous cherchiez à diversifier votre portefeuille, Daba offre les ressources et le soutien nécessaires pour naviguer dans le paysage dynamique des startups africaines. Visitez notre plateforme pour commencer votre parcours d’investissement providentiel dès aujourd’hui.

  • What is Angel Investing? A Complete Guide

    What is Angel Investing? A Complete Guide

    Angel investors are typically high-net-worth individuals who provide capital to startups in their early stages, often when the risk is highest.

    In the world of venture capital, angel investing is a form of financial backing from affluent or high-net-worth individuals to early-stage startups and small businesses. These investors, known as angels, offer capital in exchange for equity ownership or convertible debt.

    Angel investing plays a crucial role in the startup ecosystem by providing the funding and mentorship that fledgling companies need to grow and succeed.

    In this blog, we explore what angel investing is, how it works, its benefits and risks, and how you can get involved using platforms like the Daba app.

    Also Read: An Angel Investor’s Guide to Startup Investing

    Understanding Angel Investing

    Angel investors are typically high-net-worth individuals who provide capital to startups in their early stages, often when the risk is highest.

    Unlike venture capitalists who manage pooled funds, angel investors use their own money. They not only bring financial resources but also offer valuable experience, mentorship, and networks to the startups they invest in.

    Key Characteristics of Angel Investing:

    Early-Stage Focus: Angels invest in startups at the very beginning of their journey, often before they have a proven business model or significant revenue.

    Equity Stake: In exchange for their investment, angels receive equity ownership in the company, aligning their success with the startup’s growth.

    High Risk, High Reward: Angel investing is inherently risky, as many startups fail. However, successful investments can yield substantial returns.

    How Angel Investing Works

    The process of angel investing typically involves several steps:

    Identifying Opportunities: Angels identify potential investment opportunities through various channels, including personal networks, startup events, and online platforms like Daba, which connects investors with promising African startups.

    Due Diligence: Before investing, angels conduct thorough due diligence to evaluate the startup’s business model, market potential, financial health, and the founding team’s capabilities.

    Investment Agreement: Once satisfied with their evaluation, angels negotiate the terms of the investment, including the amount of capital, the percentage of equity, and any other conditions. This agreement is formalized in a legal document.

    Providing Support: Beyond financial backing, angels often play an active role in the startup by offering mentorship, strategic guidance, and access to their network.

    Exit Strategy: Angels typically seek to exit their investment within 5-10 years, through methods such as selling their shares during a company acquisition, a buyout, or an initial public offering (IPO).

    Also Read: 15 Metrics to Know Investing in African Startups in 2024

    Benefits of Angel Investing

    Angel investing offers several benefits to both the investor and the startup:

    For Angel Investors:

    High Returns: Successful investments can offer high financial returns, often surpassing traditional investment vehicles.

    Diversification: Investing in startups allows angels to diversify their investment portfolios.

    Personal Satisfaction: Many angels find satisfaction in helping entrepreneurs realize their dreams and contribute to economic growth.

    For Startups:

    Early Funding: Angel investments provide the crucial early-stage capital that many startups struggle to secure.

    Mentorship and Guidance: Angels bring valuable experience and advice, helping startups navigate challenges and grow.

    Networking Opportunities: Angels’ networks can open doors to additional funding, partnerships, and market opportunities.

    Risks of Angel Investing

    While the potential rewards are significant, angel investing comes with risks:

    High Failure Rate: A large percentage of startups fail, leading to a total loss of the invested capital.

    Illiquidity: Investments are often locked in for several years, making it difficult to access the capital quickly.

    Market Volatility: Startups are vulnerable to market changes, regulatory shifts, and economic downturns, which can impact their performance.

    Case Study: Success of GreenLeaf AgriTech

    To illustrate the potential of angel investing, let’s consider a fictional case study of GreenLeaf AgriTech, an innovative agricultural startup in Kenya.

    Background: GreenLeaf AgriTech was founded in 2018 by three young entrepreneurs with a vision to revolutionize farming in Kenya through advanced agritech solutions. Despite their groundbreaking technology and a solid business plan, they struggled to secure the necessary funding to scale their operations.

    Angel Investment: In early 2019, GreenLeaf AgriTech connected with an angel investor, Sarah, through the Daba app. Impressed by their innovative approach and the potential impact on Kenya’s agricultural sector, Sarah decided to invest $100,000 in exchange for a 10% equity stake.

    Impact: Sarah’s investment allowed GreenLeaf AgriTech to:

    • Develop and refine their technology, leading to improved crop yields and reduced water usage.
    • Expand their operations to serve more farmers across Kenya.
    • Attract additional funding from venture capitalists.

    Mentorship and Guidance: Beyond financial support, Sarah provided valuable mentorship, helping the founders navigate business challenges and connect with key industry players. Her network opened doors to strategic partnerships, further accelerating the startup’s growth.

    Exit Strategy: By 2024, GreenLeaf AgriTech had grown significantly, catching the attention of a large agribusiness corporation. The company was acquired for $10 million, providing Sarah with a substantial return on her initial investment.

    Outcome: Sarah’s $100,000 investment turned into a $1 million exit, exemplifying the high-reward potential of angel investing. Moreover, GreenLeaf AgriTech’s success had a positive impact on Kenya’s agricultural sector, benefiting countless farmers.

    Also Read: How to Make Money Investing in African Startups

    Getting Started with Angel Investing

    If you are interested in becoming an angel investor, here are some steps to help you get started:

    Educate Yourself: Learn about the fundamentals of angel investing, including the risks, rewards, and best practices. Numerous online resources, books, and courses are available to help you build your knowledge.

    Join an Angel Investing Network: Joining an angel investing network or group can provide access to vetted investment opportunities and valuable peer support. The Daba app features an angel investing group that connects investors with high-potential African startups, offering a platform to collaborate and share insights.

    Start Small: Begin with small investments to gain experience and build your confidence. As you become more comfortable, you can increase the size and number of your investments.

    Leverage Technology: Use investment platforms like the Daba app to discover and evaluate startup opportunities. The app provides detailed market insights and a streamlined investment process, making it easier to find and invest in promising startups.

    Seek Professional Advice: Consider consulting with financial advisors or mentors who have experience in angel investing. Their guidance can help you make informed decisions and avoid common pitfalls.

    How Daba Can Help

    Our platform offers a comprehensive solution for aspiring and experienced angel investors looking to explore opportunities in Africa. Here’s how Daba can support your angel investing journey:

    Curated Investment Opportunities: Daba provides access to a carefully curated list of high-potential African startups, saving you time and effort in finding worthwhile investments.

    Detailed Analytics: The app offers in-depth analytics and insights into each startup, helping you make informed investment decisions.

    Angel Investing Group: Join the angel investing group on Daba to connect with like-minded investors, share experiences, and collaborate on investments.

    Begin Your Angel Investing Journey

    Angel investing is a powerful way to support innovative startups while potentially earning significant returns. By providing early-stage capital, mentorship, and strategic guidance, angel investors play a vital role in the success of emerging businesses.

    Whether you are new to angel investing or looking to expand your portfolio, Daba offers the resources and support needed to navigate the dynamic landscape of African startups. Visit our platform to start your angel investing journey today.

  • Comment commencer à investir en Afrique : un guide pour les investisseurs

    Comment commencer à investir en Afrique : un guide pour les investisseurs

    La diversité des économies, des ressources et de la population jeune de l’Afrique présente un cas convaincant pour les investisseurs cherchant à diversifier leurs portefeuilles.

    Investir en Afrique offre une opportunité unique de tirer parti de l’une des régions les plus dynamiques et à la croissance la plus rapide au monde.

    Avec ses économies diversifiées, ses ressources naturelles abondantes et sa population jeune et entrepreneuriale, l’Afrique présente un cas convaincant pour les investisseurs cherchant à diversifier leurs portefeuilles et à obtenir des rendements significatifs.

    Voici un guide sur la façon de commencer à investir en Afrique, conçu pour vous aider à naviguer dans ce marché passionnant.

    Comprendre le paysage du marché africain

    Avant de plonger dans les investissements, il est essentiel de comprendre le paysage du marché africain. L’Afrique comprend 54 pays, chacun avec son propre environnement économique, cadre réglementaire et opportunités d’investissement. Les facteurs clés à considérer incluent :

    Croissance économique : De nombreux pays africains connaissent une croissance économique robuste, tirée par des secteurs tels que la technologie, l’agriculture et les ressources naturelles.

    Démographie : L’Afrique a une population jeune et en croissance rapide, ce qui stimule la demande de biens et de services.

    Urbanisation : L’urbanisation croissante crée de nouvelles opportunités d’investissement dans l’immobilier, les infrastructures et les biens de consommation.

    Adoption technologique : L’adoption rapide de la technologie, en particulier de la technologie mobile, transforme les industries et ouvre de nouveaux marchés.

    Lire aussi : Perspectives économiques africaines 2024 : Résilience et opportunités pour les investisseurs

    Identifier les opportunités d’investissement

    L’Afrique offre un large éventail d’opportunités d’investissement dans divers secteurs. Certains des secteurs les plus prometteurs incluent :

    Technologie : Les startups technologiques africaines attirent des investissements importants, notamment dans la fintech, le commerce électronique et la technologie de la santé.

    Agriculture : L’agriculture reste un pilier de nombreuses économies africaines, avec des opportunités dans la production, la transformation et l’agritech.

    Ressources naturelles : L’Afrique est riche en ressources naturelles, y compris les minéraux, le pétrole et le gaz, offrant des opportunités pour les investisseurs dans les secteurs minier et énergétique.

    Immobilier : La demande croissante de logements, de propriétés commerciales et d’infrastructures présente de nombreuses opportunités dans le secteur immobilier.

    Biens de consommation : La classe moyenne en expansion stimule la demande de biens et services de consommation, créant des opportunités dans la vente au détail, l’alimentation et les boissons, et les biens de consommation courante (FMCG).

    Lire aussi : De l’alimentation à la technologie : où investir en Afrique en 2024

    Choisir le bon véhicule d’investissement

    Il existe plusieurs façons d’investir en Afrique, chacune avec son propre profil de risque et de rendement. Voici quelques véhicules d’investissement courants :

    Actions : Investir dans des entreprises cotées en bourse sur les bourses africaines est une façon simple d’obtenir une exposition au marché. Des pays comme le Nigeria, le Kenya et l’Afrique du Sud, ainsi que la zone UEMOA, ont des bourses bien établies.

    Fonds négociés en bourse (ETF) : Les ETF qui se concentrent sur les marchés africains offrent une exposition diversifiée et sont un moyen facile d’investir dans un panier d’actions africaines.

    Fonds communs de placement : Les fonds communs de placement qui investissent dans les marchés africains offrent une gestion professionnelle et une diversification.

    Capital-investissement : Pour les investisseurs ayant une tolérance au risque plus élevée, le capital-investissement offre la possibilité d’investir dans des entreprises privées, souvent avec un potentiel de rendement significatif.

    Capital-risque : Investir dans les startups africaines par le biais du capital-risque peut générer des rendements élevés, en particulier dans le secteur technologique.

    Lire aussi : Qu’est-ce que les actions et pourquoi devriez-vous y investir ?

    Recherche et diligence raisonnable

    Une recherche et une diligence raisonnable approfondies sont essentielles lorsque vous investissez en Afrique. Voici quelques étapes à suivre :

    Analyse du marché : Comprenez l’environnement économique et politique du pays dans lequel vous investissez. Recherchez des économies stables avec des climats d’investissement favorables.

    Recherche sectorielle : Identifiez les secteurs ayant un fort potentiel de croissance et des conditions favorables à l’investissement.

    Évaluation des entreprises : Pour les investissements en actions, analysez la santé financière, l’équipe de direction et la position concurrentielle des entreprises que vous envisagez.

    Conformité réglementaire : Assurez-vous que vos investissements sont conformes aux réglementations locales et protégés par la loi.

    Utiliser les plateformes d’investissement

    Utiliser une plateforme d’investissement fiable peut simplifier le processus d’investissement en Afrique. L’application Daba est une plateforme d’investissement unifiée conçue pour aider les investisseurs à naviguer sur le marché africain. Voici comment Daba peut vous aider :

    Accès à des investissements vérifiés : Daba offre un accès à une liste de stocks, startups et fonds d’investissement à fort potentiel en Afrique.

    Analyses détaillées : La plateforme propose des analyses et des informations complètes pour vous aider à prendre des décisions d’investissement éclairées.

    Options d’investissement diversifiées : Des actions au capital-risque, Daba offre une gamme d’options d’investissement pour s’adapter à différents profils de risque et objectifs d’investissement.

    Conseils d’experts : Daba Pro fournit des services premium, y compris des analyses de marché, des recommandations d’actions et des stratégies d’investissement d’experts du secteur.

    Lire aussi : Comment investir dans les marchés boursiers africains

    Commencez petit et diversifiez

    Lorsque vous commencez à investir en Afrique, il est sage de commencer par un petit investissement et d’augmenter progressivement votre exposition à mesure que vous gagnez en confiance et en compréhension du marché.

    La diversification est essentielle pour gérer le risque. Répartissez vos investissements sur différents secteurs et pays pour atténuer l’impact de toute fluctuation du marché unique.

    Surveillez vos investissements

    Surveiller régulièrement vos investissements est crucial pour s’assurer qu’ils performent comme prévu et pour apporter des ajustements en temps opportun.

    Utilisez l’application Daba pour suivre votre portefeuille, accéder aux données de marché en temps réel et recevoir des mises à jour sur les tendances du marché et les opportunités d’investissement.

    Comprendre les risques

    Investir en Afrique, comme tout investissement, comporte des risques. Ceux-ci incluent l’instabilité politique, les fluctuations monétaires et la volatilité économique. Il est important de comprendre ces risques et de développer des stratégies pour les atténuer.

    Diversifier vos investissements, rester informé des développements politiques et économiques et utiliser des outils comme Daba Pro peut aider à gérer ces risques.

    Demandez des conseils professionnels

    Si vous êtes novice en matière d’investissement ou si vous ne connaissez pas bien le marché africain, demander des conseils professionnels peut être inestimable.

    Les conseillers financiers et les experts en investissement peuvent fournir des informations et des stratégies adaptées à vos objectifs d’investissement et à votre tolérance au risque.

    Lire aussi : Pourquoi investir en Afrique ?

    Conclusion

    Investir en Afrique offre une opportunité unique de participer à l’histoire de la croissance du continent et d’obtenir des rendements significatifs.

    En comprenant le paysage du marché, en identifiant les secteurs prometteurs, en choisissant les bons véhicules d’investissement et en utilisant des plateformes comme Daba, vous pouvez naviguer avec confiance dans les complexités de l’investissement en Afrique.

    Que vous cherchiez à investir dans des actions, du capital-risque ou d’autres opportunités, Daba fournit les outils et les informations dont vous avez besoin pour prendre des décisions éclairées.

    Visitez notre plateforme pour explorer les options d’investissement, accéder aux conseils d’experts avec Daba Pro et profiter des opportunités dynamiques dans le paysage d’investissement africain.

  • How to Start Investing in Africa: An Investor Guide

    How to Start Investing in Africa: An Investor Guide

    Africa’s mix of diverse economies, resources, and young population presents a compelling case for investors looking to diversify their portfolios.

    Investing in Africa offers a unique opportunity to tap into one of the world’s most dynamic and rapidly growing regions.

    With its diverse economies, abundant natural resources, and young, entrepreneurial population, Africa presents a compelling case for investors looking to diversify their portfolios and achieve significant returns.

    Here’s a guide on how to start investing in Africa, tailored to help you navigate this exciting market.

    Understand the African Market Landscape

    Before diving into investments, it’s essential to understand the African market landscape. Africa comprises 54 countries, each with its own economic environment, regulatory framework, and investment opportunities. Key factors to consider include:

    Economic Growth: Many African countries are experiencing robust economic growth driven by sectors such as technology, agriculture, and natural resources.

    Demographics: Africa has a young and rapidly growing population, which is driving demand for goods and services.

    Urbanization: Increasing urbanization is creating new investment opportunities in real estate, infrastructure, and consumer goods.

    Technological Adoption: Rapid technological adoption, particularly mobile technology, is transforming industries and opening up new markets.

    Also Read: African Economic Outlook 2024: Resilience and Opportunities for Investors

    Identify Investment Opportunities

    Africa offers a wide range of investment opportunities across various sectors. Some of the most promising sectors include:

    Technology: African tech startups are attracting significant investment, particularly in fintech, e-commerce, and health tech.

    Agriculture: Agriculture remains a cornerstone of many African economies, with opportunities in production, processing, and agritech.

    Natural Resources: Africa is rich in natural resources, including minerals, oil, and gas, offering opportunities for investors in mining and energy.

    Real Estate: The growing demand for housing, commercial properties, and infrastructure presents numerous opportunities in the real estate sector.

    Consumer Goods: The expanding middle class is driving demand for consumer goods and services, creating opportunities in retail, food and beverages, and fast-moving consumer goods (FMCG).

    Also Read: From Food to Tech: Where to Invest in Africa in 2024

    Choose the Right Investment Vehicle

    There are several ways to invest in Africa, each with its own risk and return profile. Here are some of the common investment vehicles:

    Stocks: Investing in publicly traded companies listed on African stock exchanges is a straightforward way to gain exposure to the market. Countries like Nigeria, Kenya, and South Africa as well as the WAEMU zone have well-established stock exchanges.

    Exchange-Traded Funds (ETFs): ETFs that focus on African markets provide diversified exposure and are an easy way to invest in a basket of African stocks.

    Mutual Funds: Mutual funds that invest in African markets offer professional management and diversification.

    Private Equity: For investors with a higher risk tolerance, private equity offers the opportunity to invest in privately held companies, often with the potential for significant returns.

    Venture Capital: Investing in African startups through venture capital can yield high returns, particularly in the tech sector.

    Also Read: What Are Stocks and Why Should You Invest in Them?

    Research and Due Diligence

    Thorough research and due diligence are critical when investing in Africa. Here are some steps to follow:

    Market Analysis: Understand the economic and political environment of the country you are investing in. Look for stable economies with favorable investment climates.

    Sector Research: Identify sectors with strong growth potential and favorable conditions for investment.

    Company Evaluation: For stock investments, analyze the financial health, management team, and competitive position of the companies you are considering.

    Regulatory Compliance: Ensure that your investments comply with local regulations and are protected under the law.

    Leverage Investment Platforms

    Using a reliable investment platform can simplify the process of investing in Africa. The Daba app is a unified investment platform designed to help investors navigate the African market. Here’s how Daba can assist you:

    Access to Verified Investments: Daba provides access to a curated list of high-potential stocks, startups, and investment funds in Africa.

    Detailed Analytics: The platform offers comprehensive insights and analytics to help you make informed investment decisions.

    Diverse Investment Options: From stocks to venture capital, Daba offers a range of investment options to suit different risk profiles and investment goals.

    Expert Guidance: Daba Pro provides premium services, including market analysis, stock recommendations, and investment strategies from industry experts.

    Also Read: How to Invest in African Stock Markets

    Start Small and Diversify

    When starting to invest in Africa, it’s wise to begin with a small investment and gradually increase your exposure as you gain more confidence and understanding of the market.

    Diversification is key to managing risk. Spread your investments across different sectors and countries to mitigate the impact of any single market fluctuation.

    Monitor Your Investments

    Regularly monitoring your investments is crucial to ensure they are performing as expected and to make timely adjustments.

    Use the Daba app to track your portfolio, access real-time market data, and receive updates on market trends and investment opportunities.

    Understand the Risks

    Investing in Africa, like any investment, comes with risks. These include political instability, currency fluctuations, and economic volatility. It’s important to understand these risks and develop strategies to mitigate them.

    Diversifying your investments, staying informed about political and economic developments, and using tools like Daba Pro can help manage these risks.

    Seek Professional Advice

    If you are new to investing or unfamiliar with the African market, seeking professional advice can be invaluable.

    Financial advisors and investment experts can provide insights and strategies tailored to your investment goals and risk tolerance.

    Also Read: Why Invest in Africa?

    Conclusion

    Investing in Africa offers a unique opportunity to participate in the continent’s growth story and achieve significant returns.

    By understanding the market landscape, identifying promising sectors, choosing the right investment vehicles, and leveraging platforms like Daba, you can navigate the complexities of investing in Africa with confidence.

    Whether you are looking to invest in stocks, venture capital, or other opportunities, Daba provides the tools and insights you need to make informed decisions.

    Visit our platform to explore investment options, access expert guidance with Daba Pro, and take advantage of the dynamic opportunities in Africa’s investment landscape.