Tag: investing in africa

  • Ivory Coast Rises: Economic Growth, Oil Discoveries, and a Booming Stock Market

    Ivory Coast Rises: Economic Growth, Oil Discoveries, and a Booming Stock Market

    The world’s largest producer of cocoa, an annual GDP growth of +6.8% over the past decade, a stable currency pegged to the euro and increasing oil output.

    Ivory Coast, a pillar of the West African Economic and Monetary Union (WAEMU), embodies a model of resilience and economic progress. 

    Despite past political challenges, including a civil war in early 2010, the country has strengthened its stability and democratic processes, creating a conducive environment for economic growth. 

    With a population of over 27 million, the nation has transformed its economy, showing a steady annual growth of 6.8% and an expanding stock market that has garnered global attention from investors.

    Overcoming Economic Challenges

    As the world’s leading producer of cocoa, Ivory Coast has maintained impressive economic growth with an annual GDP growth rate of 6.8% over the past decade. Even during the global slowdown caused by the COVID-19 pandemic, the country recorded a growth of 2% in 2020, outperforming many African nations. 

    The latest report from the African Development Bank describes it as one of the best-performing economies in the region, with a projected growth of 6.5% in 2024 (according to the IMF).

    The Bourse Régionale des Valeurs Mobilières (BRVM), a regional stock exchange shared with other WAEMU countries (Senegal, Burkina Faso, Niger, Togo, Benin, Mali, Guinea Bissau), has seen its market capitalization increase by 40% over the last five years, with significant participation from Ivorian companies. 

    In 2022, the BRVM reached a trading volume of over $2 billion, demonstrating the growing interest in the country’s capital market.

    Currency Stability, Energy Discoveries, and Positive Economic Projections Attract Investors

    The CFA franc pegged to the euro, offers exchange rate stability, countering the volatility affecting other African currencies, such as the Nigerian naira, which lost nearly 70% of its value against the dollar in a year. 

    This stability, combined with recent oil and gas discoveries, spurred by a significant find by the Italian company Eni, has intensified investor interest, projecting a future of growing oil production. 

    The visit of Italian President Sergio Mattarella underscores the strategic importance of Italian-Ivorian relations, with projections envisioning oil production increasing to 200,000 barrels per day by 2026. 

    With a forecasted growth of 6.8% between 2024 and 2025, driven by hydrocarbon production and infrastructure investments, a reduction of the fiscal deficit to 3.5% by 2025 is expected, compared to 5.6% of GDP in 2022. 

    This consolidation is supported by effective government commitment recognized by international financial institutions.

    Growing Demand for Financial Products

    The economic expansion of Ivory Coast is stimulating demand for innovative financial products, leading to the emergence of platforms like Daba Finance. 

    “The lack of investment platforms focused on the Francophone West African region and the need to efficiently channel over $5 billion annually sent by the African diaspora to be invested in the continent, have led to the creation of Daba Finance,” says Anthony Miclet, Italian co-founder of Daba Finance.

    Recently launched in the American and African markets, Daba Finance is a platform designed to meet the needs of investors seeking exposure to this dynamic market, offering investment opportunities in stocks, bonds, and African startups. 

    “The outdated and fragmented infrastructure of African capital markets makes it difficult for anyone to access high-quality investment opportunities on the continent. Daba aims to bridge this gap by providing a unified and user-friendly platform for investors interested in Africa,” adds Anthony Miclet.

    With its focus on Francophone West Africa, particularly Ivory Coast, Daba Finance positions itself as a key entry point for investors looking to capitalize on the region’s economic growth prospects, stability offered by the CFA franc, and attractive dividends, ranging from 8% to 10%, offered by large companies listed on the BRVM such as Orange and Sonatel.

    Thanks to sustained economic growth, a rising stock market, currency stability, and significant oil discoveries, Ivory Coast remains an excellent investment opportunity in Africa, maintaining its trajectory as a regional economic powerhouse.

    This article was first published in Milano Finanza.

  • South African Small-Cap Industrials Offer Investors a Unique Opportunity

    South African Small-Cap Industrials Offer Investors a Unique Opportunity

    Contributed by Chipo Muwowo, Founder of Capital Markets Africa.

    • SA small-cap Industrials enjoy strong earnings potential
    • Some firms have completed judicious acquisitions in recent years
    • Stock prices remain attractive despite significant increases in their value

    African equity markets offer investors great promise. This is even though most African listed companies don’t appear on leading, global frontier and emerging market indices.

    On the Johannesburg Stock Exchange (JSE), Africa’s largest and most liquid stock exchange, one sector that deserves more attention from investors is the small-cap industrials sector.

    In this short piece, we highlight three stocks that could provide investors with a route into South African equities, perhaps for the first time. 

    Why?

    SA industrials enjoy strong earnings potential driven by diversification and good asset management. Some firms have completed judicious acquisitions at home and abroad in recent years, and stock prices remain attractive despite significant increases in their value.

    Afrimat Limited (JSE: AFT)

    Afrimat is a mining and materials company listed on the Johannesburg Stock Exchange. 

    The company supplies a broad range of products: construction materials such as aggregates, bricks, and ready mix concrete; industrial minerals such as lime and lime products; bulk commodities such as iron ore and anthracite; future materials & metals such as phosphate, vermiculite, rare earth,s and green construction materials.

    In addition, Afrimat Mining Services offers full pit-to-port solutions to the mining, construction, and quarry industries throughout Southern Africa.

    Last year, the company generated revenues of ZAR2.8 billion (about $150 million), and operating profit was up 18.8%. CAGR Diluted EPS for the previous five years is up 21.47%.

    Last month, Afrimat had its bid to acquire the South African operations of Lafarge, the global cement manufacturer, approved by the Competition Tribunal. 

    Afrimat CEO Andries van Heerden said of the deal, “It will increase [our] offering in the construction materials space, by expanding the Group’s quarry and ready-mix operations nationally. Additionally, access to the fly ash operations provides a foothold into the cement extender market. The grinding plant will allow Afrimat to grind various materials as value-added products for our current and new customers. In contrast, the cement kilns allow the Group to enter the cement value chain competitively.”

    Hudaco Industries Limited (JSE: HDC)

    Hudaco specializes in the importation and distribution of a broad range of high-quality, branded automotive, industrial, and electronic consumable products (mainly on an exclusive basis) for the South African and wider Southern African region.

    It primarily supplies the consumer markets with stand-by and solar batteries, cooking and heating products, automotive spares and accessories, and more. Under engineering consumables, it supplies diesel engines, hydraulic and pneumatic equipment, electrical cable accessories, and more.



    Over the years, the firm has been acquisitive. Last year, it bought the businesses of Brigit Fire (“to invest in an industry with growth potential and to further diversify the revenue stream”) as well as Plasti-Weld (“as a bolt-on acquisition for Astore Keymak, our thermoplastic pipes and fittings business”).

    Last year, the company generated revenues of ZAR2.46 billion (about $132 million), and operating profit was up 23%. CAGR Diluted EPS for the previous five years is up 26.27%.

    This was despite significant macroeconomic challenges – “chaos at South African ports impacting the supply chain, the impact of unprecedented levels of load-shedding, and rand volatility and weakness increasing cost of inventory,” its annual report noted.

    Argent Industrial Limited (JSE: ART)

    The group sells and trades manufactured steel and steel-related products such as metal gates, railings, and shutters. It owns over 20 vertically integrated subsidiaries in South Africa, the UK, and the US while it sends exports to over 35 countries globally. The Argent group of companies also includes several jet refueling and fuel storage businesses.

    In 2021, it acquired South Africa-based American Shutters, a supplier of “a stylish door and window shutter security system” for ZAR57 million. A year earlier, it acquired UK-based Partington Engineering, a supplier of bespoke trolleys for both the traditional and e-commerce retail sectors, for GBP3.1 million.

    Last year, the company generated revenues of ZAR2.46 billion (about $132 million), and operating profit was up 23%. CAGR Diluted EPS for the previous five years is up 26.27%.

    In a note to investors last year, Rudi van Niekerk of fund manager Desert Lion Capital said, “I strongly believe that the market has been wrong on this one for a while now. Argent is not a hot AI stock. Maybe that is one of the reasons it is ignored by the market. Yet, as a real-world- economy stock, Argent’s earnings growth would make many a tech stock blush.”

  • Lengo AI soutenu par Daba fait partie de la liste des 20 Startups Africaines les plus Prometteuses de Jeune Afrique

    Lengo AI soutenu par Daba fait partie de la liste des 20 Startups Africaines les plus Prometteuses de Jeune Afrique

    L’inclusion dans la liste de Jeune Afrique témoigne du potentiel que Daba voit dans les secteurs dynamiques.

    Lengo.ai, une startup qui utilise l’intelligence artificielle pour aider les détaillants informels à gérer leurs stocks, a été nommée l’une des 20 entreprises africaines en démarrage les plus prometteuses par le magazine Jeune Afrique.

    Cette reconnaissance met en évidence la manière dont les entreprises technologiques africaines peuvent avoir un impact réel en résolvant les problèmes de manière innovante.

    Le système d’assistance vocale de Lengo.ai comble le fossé entre les grands producteurs alimentaires et les petits détaillants en rationalisant la distribution. Cela démontre le potentiel de la technologie à transformer les industries et à améliorer les moyens de subsistance à travers le continent.

    Chez Daba, notre engagement à favoriser la croissance économique et l’innovation en Afrique se manifeste par notre partenariat avec des startups comme Lengo.ai.

    En tant que partie intégrante de notre portefeuille d’investissement, Lengo.ai représente un atout stratégique et met en avant notre rôle dans le soutien aux entreprises innovantes prêtes à diriger la révolution technologique en Afrique.

    Grâce à notre plateforme, Daba offre aux investisseurs particuliers et institutionnels une exposition à une gamme d’opportunités, y compris des entreprises technologiques et commerciales pionnières comme Lengo.ai.

    L’inclusion de la startup dans la liste de Jeune Afrique témoigne du potentiel que nous voyons dans ces secteurs dynamiques et souligne les types d’entreprises à fort impact que Daba cherche à soutenir.

    On s’attend à ce que l’Afrique représente jusqu’à 40 % de la population humaine d’ici la fin du 21e siècle, le marché des produits de grande consommation étant positionné pour devenir son premier secteur industriel d’importance mondiale.

    Pour plus de détails sur la manière dont Lengo.ai utilise l’IA pour transformer le commerce informel, et le rôle de Daba, vous pouvez lire l’étude de cas disponible en français et en anglais. Elle offre un aperçu du parcours de Lengo.ai et de l’approche de Daba pour identifier les startups prometteuses.

    Investissez avec Daba aujourd’hui et faites partie du paysage technologique en plein essor de l’Afrique. Stimulez la croissance et l’innovation avec nous, en exploitant le riche potentiel et l’esprit entrepreneurial vibrant du continent.

    Pour plus d’informations sur la manière d’investir avec Daba et pour découvrir d’autres histoires de réussite comme Lengo.ai, visitez notre site web.

  • Daba-Backed Lengo AI Makes Jeune Afrique 20 Most Promising African Startups List

    Daba-Backed Lengo AI Makes Jeune Afrique 20 Most Promising African Startups List

    The inclusion in Jeune Afrique’s list is a testament to the potential that Daba sees in dynamic sectors.

    Lengo.ai, a startup that uses artificial intelligence to help informal retailers manage inventory, has been named one of Africa’s 20 most promising early-stage companies by Jeune Afrique magazine. This recognition highlights how African tech companies can make a real impact by solving problems innovatively.

    Lengo.ai’s voice-assisted system bridges the gap between large food producers and small retailers by streamlining distribution. This demonstrates the potential for technology to transform industries and improve livelihoods across the continent.

    At Daba, our commitment to fostering economic growth and innovation across Africa is embodied in our partnership with startups like Lengo.ai.

    As an integral part of our investment portfolio, Lengo.ai represents a strategic asset and highlights our role in nurturing groundbreaking companies poised to lead the tech revolution in Africa.

    Through our platform, Daba provides retail and institutional investors exposure to a range of opportunities, including pioneering tech and commercial ventures like Lengo.ai.

    The startup’s inclusion in Jeune Afrique’s list is a testament to the potential that we see in these dynamic sectors and underscores the kinds of impactful companies Daba looks to support.

    Africa is expected to account for up to 40% of the human population by the end of the 21st century with the FMCG market positioned to emerge as its first globally relevant industrial sector.

    For more details on how Lengo.ai is using AI to transform informal commerce, and Daba’s role, you can read the case study available in French and English. It offers an inside look at Lengo.ai’s journey and Daba’s approach to identifying promising startups.

    Invest with Daba today and be part of Africa’s booming tech landscape. Let’s drive growth and innovation together, tapping into the continent’s rich potential and vibrant entrepreneurial spirit.

    For more information on how to invest with Daba and to explore more success stories like Lengo.ai, visit our website.

  • Daba Partners With The African Fund to Transform SME Financing in Africa

    Daba Partners With The African Fund to Transform SME Financing in Africa

    At the heart of this partnership lies a shared vision between Daba Finance and TAF. 

    Daba Finance proudly announces its strategic partnership with The African Fund (TAF), a community-led initiative that aims to provide believers of the African growth story with a platform to invest in African small and medium enterprises (SMEs). This marks a significant stride towards revolutionizing SME financing in Africa. 

    This collaboration underscores a shared commitment to reshaping the investment landscape across Africa. It is driven by a vision that unites efforts in strengthening entrepreneurs and fueling economic growth.

    A Shared Vision:  Elevating Africa’s Entrepreneurs

    At the heart of this partnership lies a shared vision between Daba Finance and TAF, both committed to growing African SMEs and entrepreneurs through innovative financial solutions. 

    While Daba Finance has been leading the charge with its unified investment and financing platform, TAF brings to the table a community-driven initiative aimed at providing opportunities for believers in Africa’s growth story to invest in African SMEs.

    The partnership with TAF is not just a collaboration but a powerful alignment of values and objectives. Together, we harness the strengths of traditional and digital finance to empower communities and drive impactful change, united by a shared vision for a prosperous Africa

    By leveraging blockchain-based tools, TAF is pioneering a new era of financial governance and investor safety, principles that resonate deeply with Daba’s ethos of transparency and accessibility.

    “Africa has been attracting increasing attention from international investors, and for good reason. The continent is home to some of the world’s fastest-growing economies, and its stock markets have recently demonstrated superior performance compared to other global markets, suggesting the potential for attractive returns,” says Boum III Jr, Daba Co-founder and CEO.

    “As interest in African investment opportunities continues to surge, we are positioned as the premier resource for investors seeking to gain access to the continent’s most promising investment opportunities and this partnership with TAF represents a major step further in realizing our vision of unlocking the continent’s full investment potential.”

    Bringing the Vision to Life

    The partnership with TAF accelerates the realization of TAF’s Minimum Viable Product (MVP), slated for completion by June 2024. The MVP represents a pivotal milestone wherein prospective investors can acquire TAF tokens to participate in equity investments across the continent. Through this collaborative effort, Daba Finance and TAF aim to democratize access to investment opportunities while fostering economic growth and prosperity in Africa.

    Believers in Africa’s potential are invited to join in this transformative journey. By contributing to the initial community capital raise, individuals have the opportunity to play a pivotal role in shaping the future of African finance. 

    Through a simple agreement for future tokens (SAFT), contributors will gain access to investment outcomes and become stakeholders in the fund’s governance. Together, a resilient and inclusive investment ecosystem can be built that strengthens entrepreneurs and propels Africa towards prosperity.

    About Daba Finance

    Established in 2021, Daba Finance stands as Africa’s premier multi-asset investment and financing platform, dedicated to unlocking the continent’s full investment potential. Through a unified platform, individuals and institutions can access high-quality investment opportunities across African markets, driving economic growth and fostering sustainable development.

    By providing liquidity and trade execution to retail and institutional investors, Daba offers a range of features, including reliable information, transparency, and ease of investing across the continent. The platform is dedicated to bridging the capital-to-opportunity mismatch, enabling investors to access Africa’s investable opportunities while helping African companies raise the capital they need to succeed.

    About The African Fund

    The African Fund (TAF) is a community-led initiative committed to investing in African SMEs through innovative financial solutions. Leveraging blockchain-based tools, TAF operates as a Cape Verdean asset-management company, revolutionizing the investment landscape and driving inclusive growth across the continent.

    For more information, please visit https://theafrican.fund/ and https://dabafinance.com/

  • Investing in Africa: Optimize Your Portfolio With Dividend Yields

    Investing in Africa: Optimize Your Portfolio With Dividend Yields

    High Dividend Yields on African Stock Exchanges: The Key to Optimizing Your Investment Portfolio in Africa

    Investors are always looking for ways to optimize their portfolios and maximize their returns. One of the most effective techniques is to leverage dividend yields, especially on African stock exchanges. In this article, we will explore this portfolio optimization strategy, examining its advantages, potential risks, and how the Daba investment platform can help you implement this technique. Let’s dive into how to optimize your investments in Africa with dividend yields

    What is Portfolio Optimization through Dividends?

    Portfolio optimization through dividends involves investing in stocks of companies that regularly pay high dividends. The dividend yield is the ratio of the annual dividend per share to the stock price. The higher the yield, the more passive income the investor receives.

    Benefits of this Strategy

    1. Generation of Passive Income: Dividends provide a regular cash flow, allowing investors to benefit from passive income in addition to potential capital gains.
    2. Stability: Companies that regularly pay dividends are often well-established and financially stable, offering some security to investors.
    3. Protection Against Market Volatility: High-dividend stocks can help mitigate the effects of market volatility, with dividend income offsetting potential stock price declines.

    Potential Risks

    1. Dividend Reduction or Suspension: Companies may decide to reduce or suspend their dividend payments based on their financial performance or strategy.
    2. Lack of Growth: Companies paying high dividends may have fewer resources to devote to growth, limiting their potential for stock price appreciation.
    3. High Stock Prices: Companies that regularly pay high dividends may see their stock prices increase rapidly, which can alter the yield for investors who buy these stocks at higher prices.

    Example on the BRVM

    Let’s take the example of BOA Benin, listed on the Regional Stock Exchange (BRVM). In May 2024, BOA Benin is expected to pay a dividend of 706 FCFA per share, representing a dividend yield of 10.17%. By investing in this stock before the ex-dividend date (23/05/2024), you can benefit from this attractive yield and optimize your portfolio.

    How Daba Can Help You

    The Daba investment platform simplifies access to investment opportunities on African stock exchanges, including the BRVM. With Daba, you can easily research and invest in high-dividend stocks while benefiting from tools and resources to make informed decisions.

    To learn more about investing in the stock market on Daba, visit the Daba platform at https://daba.finance/app.

    We invite you to consult our comprehensive guide on investing in the stock market on Daba, available here.

    Conclusion

    Portfolio optimization through dividends is a powerful strategy for investors seeking to generate passive income and potentially mitigate risks on African stock exchanges. By using the Daba platform, you can take advantage of this technique and access attractive investment opportunities. Start optimizing your portfolio now and build a stronger financial future on the African continent.

  • Comment les entreprises africaines peuvent attirer davantage d’investissements étrangers

    Comment les entreprises africaines peuvent attirer davantage d’investissements étrangers

    Le potentiel économique florissant de l’Afrique offre d’immenses opportunités, mais attirer davantage d’investissements étrangers nécessite une position stratégique des entreprises à travers le continent.

    En adoptant les bonnes stratégies, les entreprises africaines peuvent accroître leur attrait pour les investisseurs étrangers et débloquer un flot de capitaux pour alimenter l’innovation, la croissance et la résilience.

    Voici 5 conseils clés à connaître basés sur les idées partagées par les intervenants experts Jennifer Frimpong de Ma Adjaho & Co et le PDG d’ARED, Henri Nyakarundi, lors de la récente première partie de notre série de webinaires axée sur l’investissement de la diaspora.

    Stratégies pour les entreprises africaines afin d’attirer plus d’investissements étrangers

    1. Préparer l’Investissement

    La base de l’attraction des investissements directs étrangers réside dans le fait de s’assurer que vos opérations, vos finances et votre gouvernance sont conformes aux meilleures pratiques internationales. Les investisseurs recherchent des entreprises ayant des fondamentaux solides, des normes mondiales et un engagement envers la transparence.

    Les entreprises africaines doivent prioriser la professionnalisation de leurs opérations avant de se lancer dans des démarches de collecte de fonds. Cela inclut la mise en œuvre de rapports financiers solides, le renforcement de la gouvernance d’entreprise et le respect des exigences de conformité spécifiques à l’industrie.

    2. Exploiter les Plateformes d’Accès aux Investissements

    Rejoindre des plateformes de collecte de fonds panafricaines peut considérablement accroître la visibilité et fournir des canaux de transactions vérifiés que les investisseurs étrangers font confiance.

    Ces plateformes rationalisent le flux de transactions à grande échelle, connectant les entreprises africaines à un réseau mondial d’investisseurs recherchant activement des opportunités sur le continent. En exploitant ces plateformes, les entreprises africaines peuvent efficacement présenter leur potentiel à un public ciblé de parties intéressées.

    Êtes-vous une startup ou une entreprise en phase de démarrage cherchant à stimuler votre expansion ? Daba se spécialise dans la fourniture de solutions complètes de collecte de fonds conçues pour propulser votre entreprise vers de nouveaux sommets. Consultez dès maintenant cette page sur notre site web et découvrez comment nous pouvons vous aider à accéder aux ressources dont vous avez besoin pour prospérer.

    3. Mettre en Avant les Secteurs à Fort Potentiel

    Pour captiver l’attention des investisseurs étrangers, il est crucial de mettre en avant les industries à fort potentiel du continent au-delà des récits traditionnels de matières premières et d’extraction. L’Afrique compte de nombreux secteurs prometteurs, notamment la technologie financière, l’agroalimentaire, les énergies renouvelables, les infrastructures et les technologies de l’information.

    En mettant en avant les perspectives de croissance et les opportunités inexploitées dans ces secteurs, les entreprises africaines peuvent communiquer efficacement le paysage économique diversifié du continent et attirer des investissements alignés sur les tendances mondiales.

    4. Promouvoir les Success Stories et la Preuve Sociale

    Lorsque les entreprises africaines démontrent des rendements solides aux premiers investisseurs étrangers, la promotion de ces success stories peut inspirer confiance et attirer davantage d’investissements.

    Le succès engendre le succès, et en mettant en avant des cas exemplaires de projets rentables, les entreprises africaines peuvent tirer parti de la preuve sociale pour convertir les sceptiques et débloquer des flux de capitaux supplémentaires. Ces success stories servent de puissants témoignages du potentiel d’investissement en Afrique.

    5. Mettre l’Accent sur l’Impact Économique Inclusif

    À une époque où les investisseurs accordent de plus en plus d’importance aux normes environnementales, sociales et de gouvernance (ESG), les entreprises africaines doivent souligner comment leurs activités contribuent à la création d’emplois durables, au développement des compétences, à l’autonomisation des femmes et à la résilience climatique.

    En s’alignant sur ces priorités mondiales, les entreprises africaines peuvent se positionner comme des catalyseurs de la croissance économique inclusive, en résonance avec les valeurs et les objectifs des investisseurs socialement responsables.

    Déverrouillez les portes de la croissance pour votre entreprise en phase de démarrage. Daba propose des solutions de collecte de fonds sur mesure pour aider les startups à obtenir les financements dont elles ont besoin. Visitez dès aujourd’hui la page dédiée aux startups de notre site web pour découvrir nos services et franchir la première étape vers la réalisation de vos rêves entrepreneuriaux.

    Avec une approche stratégique et un engagement envers l’excellence, les entreprises africaines peuvent surmonter les obstacles historiques et débloquer le vaste potentiel que les investissements directs étrangers représentent pour la transformation économique du continent.

    En adoptant ces stratégies, l’Afrique peut ouvrir la voie à un avenir de prospérité, d’innovation et de croissance durable, alimenté par l’afflux de capitaux mondiaux.

    La collecte de fonds peut être un défi intimidant pour les startups et les entreprises en phase de démarrage. Daba est là pour simplifier le processus avec nos solutions expertes de collecte de fonds. Visitez notre site web dès aujourd’hui pour découvrir comment nos services peuvent vous aider à naviguer dans le paysage de la collecte de fonds et à sécuriser les investissements qui stimulent votre croissance.

  • How African Companies Can Attract More Foreign Investment

    How African Companies Can Attract More Foreign Investment

    Africa’s booming economic potential holds immense opportunities, but attracting increased foreign investment requires strategic positioning by companies across the continent. 

    By adopting the right strategies, African enterprises can boost their appeal to overseas investors and unlock a torrent of capital to fuel innovation, growth, and resilience.

    Here are 5 key tips to know based on insights shared by expert panelists Jennifer Frimpong of Ma Adjaho & Co and ARED CEO Henri Nyakarundi during the recent Part 1 of our Diaspora investment-focused webinar series.

    Strategies for African companies to get more foreign investments

    1. Build Investment Readiness

    The foundation of attracting FDI lies in ensuring that your operations, financials, and governance adhere to international best practices. Investors seek companies with sound fundamentals, global standards, and a commitment to transparency.

    African enterprises must prioritize professionalizing their operations before embarking on fundraising endeavors. This includes implementing robust financial reporting, strengthening corporate governance, and adhering to industry-specific compliance requirements.

    2. Leverage Investment Access Platforms

    Joining pan-African fundraising platforms like Daba can significantly expand visibility and provide vetted deal channels that overseas investors trust. These platforms streamline deal flow at scale, connecting African companies with a global network of investors actively seeking opportunities on the continent.

    By leveraging these platforms, African enterprises can effectively showcase their potential to a targeted audience of interested parties.

    Are you a startup or early-stage company seeking to fuel your expansion? Daba provides comprehensive capital-raising solutions to propel your business. Check out this page on our website now and discover how we can help you access the resources you need to thrive.

    3. Highlight High-Potential Sectors

    To captivate the attention of foreign investors, it is crucial to highlight the continent’s high-potential industries beyond traditional narratives of commodities and extraction. Africa boasts numerous promising sectors, including fintech, agribusiness, renewable energy, infrastructure, and information technology.

    By showcasing the growth prospects and untapped opportunities within these sectors, African companies can effectively communicate the continent’s diverse economic landscape and attract investment aligned with global trends.

    4. Promote Success Stories and Social Proof

    When African ventures demonstrate strong returns to early overseas backers, promoting these success stories can inspire confidence and attract further investment.

    Success breeds success, and by highlighting exemplary cases of profitable ventures, African companies can leverage social proof to convert skeptics and unlock additional capital inflows. These success stories serve as powerful testaments to the potential of investing in Africa.

    5. Emphasize Inclusive Economic Impact

    In an era where investors increasingly prioritize environmental, social, and governance (ESG) standards, African companies must emphasize how their enterprises drive sustainable job creation, skills development, women’s empowerment, and climate resilience.

    By aligning with these global priorities, African businesses can position themselves as catalysts for inclusive economic growth, resonating with the values and objectives of socially responsible investors.

    Unlock the doors to growth for your early-stage venture. Daba offers tailored capital-raising solutions to help startups secure the funding they need. Visit the startups page of our website today to explore our services.

    With a strategic approach and a commitment to excellence, African companies can overcome historical barriers and unlock the vast potential that foreign direct investment holds for the continent’s economic transformation. 

    By adopting these strategies, Africa can pave the way for a future of prosperity, innovation, and sustainable growth, fueled by the influx of global capital.

    Raising capital can be a daunting challenge for startups and early-stage companies. Daba is here to simplify the process with our expert capital-raising solutions. Reach out to us today to learn how our services can help you navigate the fundraising landscape and secure the investments that drive your growth.

  • Top 5 des pays investissant dans les marchés africains

    Top 5 des pays investissant dans les marchés africains

    La part relative du stock d’IDE de l’Afrique en provenance d’Europe a diminué au cours de la dernière décennie, tandis que celle de l’Asie a augmenté.

    L’investissement direct étranger (IDE) se produit lorsqu’une personne ou une entreprise d’un pays investit dans une entreprise d’un autre pays et en prend le contrôle significatif, généralement en possédant 10 % ou plus de son pouvoir de vote.

    L’IDE est crucial pour relier les économies à l’échelle mondiale, car il établit des liens durables entre elles. C’est un moyen vital pour que la technologie circule entre les pays, stimule le commerce international en offrant un accès à de nouveaux marchés, et joue un rôle majeur dans la croissance économique.

    Ainsi, nous discutons des principaux pays qui représentent la plus grande part des flux d’IDE vers les marchés africains. Mais d’abord, pourquoi l’IDE est-il important pour l’Afrique, et quelles sont les dernières tendances en matière d’investissement direct étranger sur le continent ?

    Pourquoi l’Investissement Étranger est-il Important pour l’Afrique ?

    Pour l’Afrique, l’IDE est crucial pour plusieurs raisons. Premièrement, il apporte un capital indispensable pour le développement des infrastructures, la création d’emplois et le transfert de technologie, qui sont essentiels à la croissance économique.

    L’IDE facilite également la diversification des économies en introduisant de nouvelles industries et en améliorant celles qui existent déjà. De plus, il favorise le commerce et renforce l’intégration économique mondiale en connectant les marchés africains aux réseaux internationaux.

    En outre, l’IDE s’accompagne souvent d’expertise, de compétences en gestion et d’un accès aux marchés mondiaux, ce qui peut aider les entreprises locales à s’étendre et à devenir plus compétitives.

    En outre, il favorise l’innovation et les améliorations de productivité grâce aux transferts de connaissances et à la diffusion de la technologie. Enfin, l’IDE contribue à la stabilité des économies africaines en fournissant une source stable de financement externe et en réduisant la dépendance à l’égard de sources volatiles telles que l’aide étrangère ou les exportations de produits de base.

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    Dernières Tendances des Flux d’IDE vers l’Afrique

    Le Rapport sur l’Investissement Mondial de la CNUCED pour l’année 2023 révèle que les investissements étrangers en provenance de l’étranger vers l’Afrique sont passés à 45 milliards de dollars en 2022, contre un record de 80 milliards de dollars en 2021. Cela représentait 3,5 % de l’investissement mondial total.

    En Afrique du Nord, l’Égypte a vu un gros bond des investissements étrangers à 11 milliards de dollars en raison de plus d’entreprises achetant et fusionnant. Le nombre de nouveaux projets annoncés a plus que doublé pour atteindre 161. Les accords pour des projets internationaux ont également augmenté des deux tiers pour atteindre 24 milliards de dollars. Cependant, l’investissement au Maroc a légèrement baissé de 6 % pour atteindre 2,1 milliards de dollars.

    En Afrique de l’Ouest, le Nigeria a enregistré un investissement étranger négatif de -187 millions de dollars car certains investisseurs se sont retirés. Mais le nombre de nouveaux projets a augmenté de 24 % pour atteindre 2 milliards de dollars. L’investissement au Sénégal est resté le même à 2,6 milliards de dollars, tandis que le Ghana a vu une diminution de 39 % pour atteindre 1,5 milliard de dollars.

    En Afrique de l’Est, l’investissement en Éthiopie a chuté de 14 % pour atteindre 3,7 milliards de dollars, mais il a quand même reçu le deuxième investissement étranger le plus important sur le continent. L’investissement en Ouganda a augmenté de 39 % pour atteindre 1,5 milliard de dollars en raison d’investissements dans l’extraction de ressources. La Tanzanie a enregistré une augmentation de 8 % pour atteindre 1,1 milliard de dollars.

    En Afrique Centrale, l’investissement en République Démocratique du Congo est resté le même à 1,8 milliard de dollars, principalement grâce aux investissements dans les champs pétrolifères et l’exploitation minière.

    En Afrique Australe, l’investissement étranger en Afrique du Sud s’est élevé à 9 milliards de dollars, moins qu’en 2021 mais le double de la moyenne des dix dernières années. En Zambie, après deux années de pertes, l’investissement étranger a augmenté pour atteindre 116 millions de dollars.

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    Au cours des cinq dernières années, l’investissement étranger a augmenté dans quatre des groupes économiques en Afrique.

    L’investissement dans le Marché Commun de l’Afrique Orientale et Australe a augmenté de 14 % pour atteindre 22 milliards de dollars. Il a également augmenté dans la Communauté de Développement de l’Afrique Australe (multiplié par quatre pour atteindre 10 milliards de dollars), l’Union Économique et Monétaire Ouest Africaine (doublant pour atteindre 5,2 milliards de dollars), et la Communauté d’Afrique de l’Est (en hausse de 9 % pour atteindre 3,8 milliards de dollars).

    De manière générale, les destinations de l’IDE en Afrique ont évolué au cours de la dernière décennie, avec l’Afrique du Nord et l’Afrique Australe – qui représentaient la majorité de l’IDE à mi-2000 – perdant des parts d’IDE au profit de l’Afrique de l’Est.

    Sources des Flux d’IDE vers l’Afrique

    Les investisseurs européens restent la source la plus importante de stock d’IDE en Afrique, avec en tête le Royaume-Uni (60 milliards de dollars), la France (54 milliards de dollars), et les Pays-Bas (54 milliards de dollars) au cours des cinq dernières années.

    Mais la part relative du stock d’IDE de l’Afrique provenant de l’Europe a diminué au cours de la dernière décennie, tandis que la part de l’Asie a augmenté – la Chine étant actuellement en tête.

    Nous explorons les principales sources des flux d’IDE vers l’Afrique, sur la base des données de la recherche de l’Institut Brookings de l’année 2014 à 2018.

    Chine

    La Chine est le plus grand investisseur mondial en Afrique en termes de capital total. Elle a investi plus de 72 milliards de dollars sur le continent de 2014 à 2018. Cet investissement a créé plus de 137 000 emplois à travers 259 projets.

    France

    La France a investi 34 milliards de dollars en Afrique sur la même période, créant 58 000 emplois dans 329 projets. Les investissements de la France sont cruciaux pour ses anciennes colonies en Afrique, telles que le Nigeria, le Maroc, l’Algérie et la Côte d’Ivoire.

    États-Unis

    L’investissement direct américain en Afrique s’est élevé à près de 31 milliards de dollars de 2014 à 2018. Les États-Unis étaient responsables de 463 projets sur le continent, soit le plus grand nombre par rapport à tout autre pays. Ces projets ont créé 62 000 emplois. Les entreprises américaines continuent de rechercher des opportunités d’investissement en Afrique.

    Vous voulez franchir la prochaine étape pour exploiter le potentiel d’investissement de l’Afrique ? Rendez-vous sur notre site Web ou téléchargez dès maintenant l’application Daba pour commencer votre voyage.

    Émirats Arabes Unis

    Les Émirats Arabes Unis (EAU) ont versé plus de 25 milliards de dollars en Afrique au cours de quatre années. Cela est logique étant donné la proximité des Émirats Arabes Unis avec l’Afrique de l’Est, car ils se trouvent à l’extrémité orientale de la péninsule arabique.

    Les investissements en capital des Émirats Arabes Unis en Afrique devraient augmenter fortement dans les années à venir : Le gouvernement en 2020 a annoncé une initiative de 500 millions de dollars pour aider la jeunesse africaine et numériser les ressources.

    Fin 2019, les Émirats Arabes Unis ont déclaré finaliser un accord de libre-échange avec un consortium de pays africains, et le mois dernier, ils ont signé un accord de 35 milliards de dollars avec l’Égypte pour développer un tronçon stratégique de la côte méditerranéenne du pays nord-africain.

    Royaume-Uni

    Le Royaume-Uni a investi près de 18 milliards de dollars en Afrique de 2014 à 2018, couvrant 286 projets et créant 41 000 emplois. Le Royaume-Uni, comme la France, entretient toujours des liens forts avec ses anciennes colonies en Afrique, telles que Sierra Leone, le Kenya, le Zimbabwe, l’Ouganda, la Zambie, la Tanzanie et l’Égypte.

    Entre 2014 et 2018, l’investissement direct chinois sur le continent africain représentait la principale source d’IDE.

    Pourquoi Plus de Pays Investissent en Afrique

    L’Afrique représente un marché significatif et inexploité pour l’investissement étranger. Ses 54 pays abritent 1,3 milliard de personnes, dont beaucoup sont jeunes et auront besoin de bons emplois dans les années à venir, ainsi qu’une abondance de ressources naturelles, du pétrole à l’or en passant par les diamants et le lithium.

    De plus, la Zone de Libre-Échange Continentale Africaine (ZLECAF), qui relie 1,3 milliard de personnes de 55 pays, offre une grande chance pour l’économie africaine de croître et entraînera très probablement plus d’investissements étrangers en Afrique en réduisant les règles et en facilitant l’accès aux nouveaux marchés.

    Comment les investisseurs peuvent-ils se positionner au mieux pour saisir les opportunités découlant de ces développements rapides dans le paysage d’investissement en Afrique ? 

    Contactez-nous chez Daba pour vous guider dans le voyage de l’investissement en Afrique, que vous soyez un investisseur individuel ou institutionnel. Téléchargez notre application, remplissez ce formulaire sur notre site Web ou discutez avec notre équipe sur WhatsApp pour commencer.

  • Top 5 Countries Investing in African Markets

    Top 5 Countries Investing in African Markets

    The relative share of Africa’s FDI stock originating from Europe declined in the last decade, while Asia’s share increased—with China currently leading the pack.

    Foreign direct investment (FDI) is when a person or business from one country invests in and gains significant control over a company in another country, typically by owning 10% or more of its voting power.

    FDI is crucial for connecting economies globally, as it establishes lasting ties between them. It’s a vital way for technology to move between countries, boosts international trade by providing access to new markets, and plays a big role in driving economic growth. 

    As such, we discuss the top countries that account for the largest share of FDI flows into African markets. But first, why is FDI important to Africa, and what are the latest foreign direct investment trends on the continent?

    Why Is Foreign Investment Important To Africa?

    For Africa, FDI is crucial for several reasons. Firstly, it brings in much-needed capital for infrastructure development, job creation, and technology transfer, which are essential for economic growth. 

    FDI also facilitates the diversification of economies by introducing new industries and enhancing existing ones. Moreover, it promotes trade and strengthens global economic integration by connecting African markets with international networks.

    In addition, FDI often comes with expertise, managerial skills, and access to global markets, which can help local businesses expand and become more competitive. 

    Furthermore, it fosters innovation and productivity enhancements through knowledge spillovers and technology diffusion. Lastly, FDI contributes to the stability of African economies by providing a stable source of external financing and reducing reliance on volatile sources like foreign aid or commodity exports.

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    Latest Trends in FDI Flows to Africa

    UNCTAD’s World Investment Report 2023 reveals that money invested from abroad into Africa dropped to $45 billion in 2022 from a record high of $80 billion in 2021. This made up 3.5% of the total global investment.

    In North Africa, Egypt saw a big jump in foreign investment to $11 billion due to more companies buying and merging. The number of new projects announced more than doubled to 161. Deals for international projects also went up by two-thirds to $24 billion. However, investment in Morocco went down a bit by 6% to $2.1 billion.

    In West Africa, Nigeria experienced negative foreign investment of -$187 million because some investors pulled out. But new projects increased by 24% to $2 billion. Investment in Senegal stayed the same at $2.6 billion, while Ghana saw a decrease of 39% to $1.5 billion.

    In East Africa, investment in Ethiopia dropped by 14% to $3.7 billion, but it still received the second most foreign investment on the continent. Uganda’s investment went up by 39% to $1.5 billion due to investments in extracting resources. Tanzania saw an increase of 8% to $1.1 billion.

    In Central Africa, investment in the Democratic Republic of the Congo stayed the same at $1.8 billion, mainly from investments in oil fields and mining.

    In Southern Africa, foreign investment in South Africa was $9 billion, less than in 2021 but double the average of the last ten years. In Zambia, after two years of losses, foreign investment increased to $116 million.

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    Over the past five years, foreign investment has increased in four of the economic groups in Africa.

    Investment in the Common Market for Eastern and Southern Africa went up by 14% to $22 billion. It also increased in the Southern African Development Community (rising four times to $10 billion), the West African Economic and Monetary Union (doubling to $5.2 billion), and the East African Community (up by 9% to $3.8 billion).

    Generally, the destinations of FDI in Africa have shifted over the last decade, with Northern and Southern Africa—which made up the majority of FDI stock in the mid-2000s—losing FDI share to Eastern Africa.

    Sources of FDI Flows to Africa

    European investors remain the most important source of FDI stock in Africa, led by the United Kingdom ($60 billion), France ($54 billion), and the Netherlands ($54 billion) over the past five years.

    But the relative share of Africa’s FDI stock originating from Europe declined in the last decade, while Asia’s share increased—with China currently leading the pack.

    We explore the leading sources of FDI flows to Africa, based on data from the Brookings Institute research from the year 2014 to 2018.

    China

    China is the world’s largest investor in Africa in terms of total capital. They invested more than $72 billion in the continent from 2014 to 2018. That investment created more than 137,000 jobs across 259 projects. 

    France

    France invested $34 billion in Africa over the same period, creating 58,000 jobs in 329 projects. France’s investments are crucial to its former colonies in Africa, such as Nigeria, Morocco, Algeria, and the Ivory Coast. 

    The United States

    American direct investment in Africa was nearly $31 billion from 2014 to 2018. The United States was responsible for a total of 463 projects on the continent, the most of any other country. These projects created 62,000 jobs. American companies continue to seek investment opportunities in Africa.

    Want to take the next step in tapping Africa’s investment potential? Head over to our website or download the Daba app now to start your journey.

    United Arab Emirates

    The United Arab Emirates (UAE) poured more than $25 billion into Africa over four years. This makes sense given the UAE’s proximity to eastern Africa as it sits on the eastern edge of the Arabian peninsula. 

    The UAE’s capital investments in Africa are expected to rise sharply in the coming years: The government 2020 announced a $500 million initiative to help Africa’s youth and digitize resources. 

    In late 2019, the UAE said it was finalizing a free trade agreement with a consortium of African countries, and last month, it signed a $35 billion deal with Egypt to develop a prime stretch of the North African country’s Mediterranean coast.

    United Kingdom

    The United Kingdom invested nearly $18 billion in Africa from 2014 to 2018, covering 286 projects and creating 41,000 jobs. Britain, like France, still has strong ties to its former colonies in Africa, such as Sierra Leone, Kenya, Zimbabwe, Uganda, Zambia, Tanzania, and Egypt.

    Between 2014 and 2018, Chinese direct investment in the African continent represented the main source of FDI.

    Why More Countries Are Investing in Africa

    Africa represents a significant untapped market for foreign investment. Its 54 countries are home to 1.3 billion people, many of whom are young and will need good jobs in the coming years, and an abundance of natural resources from oil and gold to diamonds and lithium.

    In addition, the African Continental Free Trade Area (AfCFTA), which links 1.3 billion people from 55 countries, offers a big chance for Africa’s economy to grow and is poised to draw more foreign investment into its markets by cutting down rules and making it easier to reach new markets.

    How can investors best position themselves to capture opportunities arising from these rapid developments in Africa’s investment landscape?

    Reach out to us at Daba to guide you on the journey of investing in Africa, whether you’re an individual or institutional investor. Download our app, fill out this form on our website, or chat with our team on WhatsApp to get started.