Tag: Investments

Rising Inflation: What Does it Mean for Your Investments?
Since 2022, inflation has been a persistent issue affecting everyone’s daily expenses.

From groceries to gas, the cost of essentials has been steadily climbing, squeezing wallets and leaving many wondering how to protect their investments.

But fear not, there’s a silver lining!

While inflation can be challenging, it doesn’t have to spell doom and gloom for your stock portfolio. With the right strategy, you can use stocks to weather this inflationary storm and potentially profit from it.

This article delves into how inflation impacts your investments, particularly stocks. We’ll explore inflation’s challenges and unveil strategies to turn it into an advantage.

So, buckle up, and let’s navigate the world of inflation together!

What is Inflation? The Price Tag on Everything

Imagine your favorite dish at the local restaurant. Last year, it cost 3,000 CFA francs. Today, it’s 3,500 CFA. That’s inflation in action.

It’s the general increase in prices of goods and services over time, reducing the purchasing power of your money. A 3,000 CFA note today buys less than it did a year ago.

Why Inflation Matters for Investors

Inflation can be a double-edged sword for investors. Let’s see how:
- Erosion of Investment Value: Fixed-income investments like bonds offer a set interest rate. If inflation rises above that rate, the actual return on your investment diminishes. Imagine a 5% bond with 8% inflation. You’re technically gaining money, but your purchasing power has decreased by 3%.
- Stock Market Swings: Companies on stock exchanges such as the BRVM aren’t immune to inflation. They may raise prices to offset rising costs. If these companies can effectively manage inflation and maintain profitability, their stock prices could rise, potentially outpacing inflation.
Remember: This isn’t guaranteed. A company’s ability to raise prices and maintain profits depends on various factors like competition and consumer demand. In addition, high inflation can also lead to economic uncertainty, potentially impacting stock prices.

Also Read: Should You Save Or Invest Your Money?

Sectors That Can Thrive in Inflation

Not all companies are created equal when it comes to inflation. Here are some BRVM sectors that might perform well during inflationary periods:
- Consumer Staples: People need to eat regardless of inflation. Companies on the BRVM dealing in essential goods like SONATEL (telecoms) or companies in the consumer goods sector tend to see steady demand even with rising prices.
- Financials: Banks like Ecobank or Bici can benefit from rising interest rates, a common tool used to combat inflation. Higher interest rates mean banks can charge more for loans, potentially increasing their profits.
- Materials: The prices of raw materials often rise with inflation. Companies in the extraction or processing of these materials, like Solibra (brewery) on the BRVM, could see their stock prices benefit.
Strategies to Profit From Inflation With Stocks

So, how can you leverage inflation to your advantage on the BRVM? Here are some tips:
- Inflation-Beating Stocks: Look for companies with a history of increasing prices and revenue alongside inflation. These could be consumer staples companies like breweries or producers of everyday necessities. As inflation pushes up the cost of their products, their profits tend to rise as well.
- Invest in Dividend-Paying Stocks: Companies that consistently pay dividends provide a regular stream of income that can help offset inflation’s impact on your purchasing power. Look for companies on the BRVM with a history of reliable dividend payouts.
- Actively Manage Your Portfolio: Inflation is an ongoing process. Regularly monitor your BRVM holdings and adjust your investment strategy as needed. Diversification across sectors that can weather inflation is key.
- Diversify: Don’t put all your eggs in one basket. Spread your investments across different sectors and asset classes to mitigate risk.
With Daba’s investment platform, you can access a wide range of inflation-beating stocks and dividend-paying companies, ensuring your portfolio remains resilient in challenging times. Download our app to get started.

Beyond Stocks: Additional Inflation Hedges

While stocks can be a powerful tool against inflation, a well-diversified portfolio is essential. Consider these additional strategies:
- Commodities: Certain commodities, like gold, often see their prices rise during inflation and can act as a hedge against inflation.
- Treasury Bills: Though not directly inflation-proof, short-term government bonds can offer some protection against rising interest rates in inflationary periods.
- Real Estate Investment Trusts (REITs): REITs can be a good hedge against inflation. REITs own and operate income-producing real estate. During inflation, property values and rents often rise, translating to higher returns for REIT investors.
Also Read: What is investment diversification? – Importance, benefits, and strategies

Stay Informed: Inflation is a Moving Target

Inflation rates fluctuate, and economic forecasts can change. Keeping yourself updated on economic news and inflation projections is crucial for making informed investment decisions.

Daba provides reliable information and expert analysis to help you stay ahead of inflation trends and make smart investment choices. Get started here.

Remember, It’s Not About Beating Inflation, It’s About Keeping Up

The goal in an inflationary environment isn’t necessarily to “beat” inflation but to ensure your investments at least keep pace with it.

By understanding how inflation works and making strategic choices, you can position your portfolio to navigate inflationary periods and potentially grow your wealth over time.

At Daba, we empower investors with the tools and insights needed to make informed decisions and safeguard their wealth in any economic climate. Explore our platform today and start investing with confidence.
June 7, 2024
How to Pick Stocks: A Guide For Beginners
Selecting stocks can feel overwhelming.

The BRVM regional stock exchange alone has 38 different market sectors, 49 distinct industries, over 40 listed securities, and more than 45 listed companies.

How can anyone, especially a beginner, choose stocks positioned for success? One thing’s for sure. There’s no perfect formula that guarantees profits.

There are thousands of different investing approaches, strategies, and mindsets just as many stocks as there are.

But as a new or experienced investor rethinking your approach, understanding these general principles can help.

Here are five things to know before picking stocks:

Know Your Goals, Timeline, and Risk Tolerance

If choosing individual stocks, first outline your goals, investment timeline, and risk tolerance. Are you an investor seeking portfolio growth, or income from your investment?

What volatility level can you handle? A young investor aiming for a multi-million portfolio by age 40 may look at higher-risk, higher-potential stocks – likely aggressive growers like SETAO (agribusiness) or beaten-down value plays.

An investor with a shorter timeline seeking safety and income will likely stick to large, established companies paying dividends like SONATEL (telecommunications).

Determine if you want long-term growth (common for younger investors), capital preservation nearing retirement (older investors), or income from dividends. Your goals dictate which companies to consider.

Income investors search for stocks with good dividends backed by cash flow. Growth investors favor reinvesting profits, so they target younger high-growth companies.

Capital preservation means steady, predictable profits from stalwarts like SICOR (agro-industry, founded 1973).

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

Understand the Companies and Research Thoroughly

When buying a stock, you become a part owner. Not understanding the business sets you up for failure. Would you take full ownership of a company whose operations you don’t understand?

Even with skilled management, how can you evaluate their performance? Find companies through products and services you use daily. Consider the companies behind the things you use.

Also, consider indirect impacts – who makes checkout machines at supermarkets, produces medicine, makes auto parts, or builds cell towers and equipment? Use your interactions to research sectors and competitors.

If you don’t grasp how a business makes money, either research it or find another company.

Determine if the Company Has a Competitive Advantage

With companies and competitors identified, narrow the list by the most important factor: a sustainable competitive advantage giving them an edge over rivals. Determining a company’s advantage and how durable it is, is key to investing.

Products or services with a wide, sustainable competitive advantage around them deliver rewards. This stems from scale advantages, high switching costs, unique brands like SONATEL, intellectual property, and network effects making it hard for others to compete.

Evaluate revenue growth, profitability, debt, return on equity, industry position, and industry health like the strong infrastructure sector before investing. Benchmark the stock against competitors and indexes to appropriately time your purchase.

Daba’s platform offers detailed company profiles and industry analysis to help investors identify companies with sustainable competitive advantages. Explore our resources to make informed decisions.

Also Read: How to Invest in African Stock Markets

Determine a Fair Price for the Stock

After identifying companies, evaluate stock prices for good value. Methods to adopt include:
- Price-to-Earnings Ratio: Divide share price by annual earnings per share. Stocks trading below their historic P/E averages can signal value for steady profit/growth companies. However, accelerating future growth justifies paying premiums.
- Price-to-Sales Ratio: More useful for unprofitable or erratic earners like SETAO’s early growth phase. Consider future expectations beyond historical averages since not all sales are equally profitable.
- Discounted Cash Flow Modeling: Project future revenue, profit margins, and expenses years out. Model earnings from these projections. Discount those cash flows by your required return rate to estimate stock value and reasonable price.
- Dividend Yield: For income, compare current yield to stock averages. High relative yields can signal value, but avoid unsustainably high payouts from struggling businesses.
The Daba app allows investors to buy and sell BRVM-listed stocks directly on their mobile devices. Leverage our tools to analyze stock valuations and make strategic investments.

Buy With a Margin of Safety

Buy stocks trading below your fair valuation, providing a margin of safety. If valuations are wrong, you limit the downside by paying less than the estimated worth. For stable companies, a 10% discount could suffice.

For less predictable growth stocks, use 15-30% margins depending on valuation confidence. This protects against unforeseen challenges like new competition. Don’t fixate on the absolute lowest price. After researching diligently, buy when the price seems reasonable.

By diligently following this process and building a diversified portfolio across sectors, you can uncover successful long-term investments in the BRVM and any stock market.

With Daba Pro, you’ll receive expert analysis on companies with strong economic moats trading at attractive valuations – taking the guesswork out of stock picking for busy individuals.

Sign up today to start investing with confidence and make the most of your investment journey with Daba.
June 7, 2024
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.”
May 23, 2024
Les 9 principales tendances qui ont façonné la BRVM en 2023

L’une des principales questions que se posent souvent les investisseurs souhaitant diversifier leur portefeuille est : “Où investir en Afrique ?” Les actions africaines offrent certaines des opportunités les plus prometteuses pour les investisseurs particuliers et institutionnels.

Dans ce blog, nous explorons certaines des tendances marquantes sur la bourse l’année dernière et pourquoi les investisseurs intéressés par l’Afrique devraient se tourner vers la Bourse Régionale des Valeurs Mobilières (BRVM), la bourse régionale desservant huit pays d’Afrique de l’Ouest francophones.

Qu’est-ce que la BRVM ?

La Bourse Régionale des Valeurs Mobilières (BRVM) sert de bourse régionale pour les États membres de l’Union Économique et Monétaire Ouest-Africaine (UEMOA).

Il s’agit notamment du Bénin, du Burkina Faso, de la Côte d’Ivoire, de la Guinée-Bissau, du Mali, du Niger, du Sénégal et du Togo.

Malgré des défis tels que l’inflation et les tensions politiques, la BRVM a fait preuve de résilience en 2023, avec son indice composite affichant une croissance constante.

1. BOA, Sonatel, Orange en tête

L’année dernière, 21 actions ont connu des périodes prospères, enregistrant des gains en capital notables, tandis que 23 actions ont connu un déclin, avec 2 maintenant la stabilité.

Les secteurs de la finance et des services publics ont notamment contribué à l’orientation positive du marché boursier de la BRVM, enregistrant des gains de 14,45 % et 8,64 % respectivement.

Notamment, des actions au sein de ces secteurs, telles que Sonatel et Orange Côte d’Ivoire, ont joué un rôle crucial dans cette performance. BOA CI s’est révélé être le meilleur performer, affichant un gain impressionnant de 86,35 %, alimenté par les opportunités dans le secteur bancaire ivoirien.

L’indice composite de la BRVM, l’indicateur de performance global, a connu une croissance initiale modeste à 203,22 points (+0,46 %). Cependant, il a conclu l’année avec une augmentation notable de 5,38 %, atteignant 214,15 points, marquant ainsi sa troisième année consécutive de croissance.

Vous voulez diversifier votre portefeuille ? Les actions phares de la BRVM offrent des opportunités prometteuses pour les investisseurs. Consultez l’application Daba pour y accéder.

2. Augmentation de la distribution de dividendes

Malgré les défis de 2022 et les directives prudentes de la BCEAO concernant la distribution de dividendes des banques, les sociétés cotées à la BRVM ont considérablement augmenté la rémunération des actionnaires en 2023. Les dividendes distribués aux investisseurs ont augmenté de 25,82%, totalisant 647,8 milliards de FCFA.

Des entreprises telles que Sonatel, Orange CI, Société Générale CI, Ecobank CI et Société Ivoirienne de Banque se sont démarquées en distribuant des sommes substantielles à leurs actionnaires.

3. Brandon McCain acquiert des actions dans BICICI

Brandon McCain Capital, dirigé par Ahmed Cissé, a acquis une participation de 19,11% dans BICICI auprès du groupe SUNU bancassurance. Cette transaction, évaluée à 22,12 milliards de FCFA, marque un changement significatif dans la structure de l’actionnariat de BICICI.

4. Vista Group négocie le rachat d’actions d’Oragroup

Le Vista Group a engagé des discussions pour le rachat des actions d’Oragroup détenues par ECP. Cet accord, avec un consortium dirigé par Emerging Capital Partners, vise à faire de Vista le principal actionnaire d’Oragroup, détenant plus de 61% des actions.

Cependant, des divergences de valorisation entre ECP et le groupe de Simon Tiemtoré posent des défis à l’achèvement de l’accord.

5. La BRVM dépasse la barre des 8 000 milliards de FCFA

Un jalon important atteint par la BRVM en 2023 a été son franchissement historique de la barre des 8 000 milliards de FCFA en capitalisation boursière. Cette occasion mémorable a eu lieu le 12 septembre 2023, propulsée par des sommets notables dans les actions de Société Générale CI et Orange CI, au milieu d’augmentations généralisées.

Par la suite, le 20 septembre 2023, la BRVM est devenue le cinquième marché le plus important en Afrique, avec une capitalisation boursière de 12,861 milliards de dollars, dépassant celle de la bourse de Nairobi de 9,77 milliards de dollars.

La cotation d’Orange Côte d’Ivoire à la fin de 2022 a largement contribué à cette réalisation, représentant environ 20% de la capitalisation boursière totale.

Malgré une baisse du volume global des transactions de 45,8% par rapport à 2022, la valeur des transactions a augmenté de 41,2%, atteignant 246 milliards de FCFA en 2023, reflétant une évolution positive du marché.

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6. Acquisition du groupe Crédit d’Afrique par Alios Finance

Le 12 décembre, Tunisie Leasing et Factoring a annoncé son accord avec le groupe Crédit d’Afrique, dirigé par l’entrepreneur à succès Serge BILE, pour l’acquisition de ses filiales.

Cette acquisition comprend des participations majoritaires dans les filiales d’Alios Finance en Côte d’Ivoire, au Cameroun et au Gabon. Alors que la filiale ivoirienne était confrontée à des défis financiers, cette vente pourrait potentiellement découler des performances financières des filiales.

Safca, contrôlée à 52,02% par Alios Finance, a connu une augmentation significative de 47,16% de sa valeur boursière à la BRVM à la fin de l’année.

7. Records historiques pour Ecobank CI, Société Générale CI et SIB

En 2023, certaines actions ont atteint leurs prix les plus élevés depuis leur introduction à la BRVM. Notamment, Ecobank CI, Nestlé CI, Orange CI, Société Générale CI et SIB ont atteint des jalons significatifs dans leur évolution de prix.

Ces développements, tout en reflétant un sentiment de marché positif, peuvent avoir un impact sur les bénéfices, les dividendes et les actifs nets. Les attentes élevées des investisseurs pourraient entraîner une augmentation des ratios cours/bénéfices et une baisse de la rentabilité moyenne, affectant l’attrait des actions en fonction du rendement des dividendes.

8. Meilleurs rendements offerts lors des publications

Avec la publication des états financiers pour 2022 au cours de 2023, plusieurs entreprises se sont distinguées par le niveau de rémunération des actionnaires qu’elles ont offert. BOA BF a mené le classement avec un rendement de dividende notable de 11,09%, suivi par Palmci à 11,05%.

Nestlé CI, BOA CI et SOGB ont complété le top 5 avec des rendements respectifs de 10,79%, 10,40% et 10,30%. Cet indicateur, avec un rendement moyen en dividendes de plus de 10%, a contribué à renforcer la confiance des investisseurs dans le marché boursier.

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9. Les concessions de Sonatel

Malgré sa domination de longue date, Sonatel s’est retrouvé déplacé en tant que géant de la capitalisation boursière à la BRVM, cédant la première place à son homologue ivoirien, Orange CI.

L’introduction en bourse réussie d’Orange Côte d’Ivoire, la plus importante jamais réalisée sur le marché de la BRVM, a suscité l’excitation du marché, propulsant sa valeur boursière de près de 15% en seulement deux séances.

Cependant, la consolidation post-introduction en bourse a permis à Sonatel de récupérer sa position, partageant désormais la domination du marché avec Orange CI, commandant collectivement plus de 42% de la capitalisation boursière globale.

Investir dans des actions africaines, en particulier via des plateformes comme la BRVM, offre aux investisseurs une porte d’entrée vers des opportunités diverses et prometteuses.

En comprenant les tendances du marché, les développements stratégiques et la performance sectorielle, les investisseurs peuvent prendre des décisions éclairées sur où et comment investir dans les marchés boursiers dynamiques de l’Afrique, débloquant ainsi le potentiel de croissance du continent et contribuant au succès des investissements à long terme.

La plateforme d’investissement de pointe de Daba offre aux investisseurs un moyen transparent et efficace de découvrir, de négocier et de surveiller les investissements sur la BRVM. Téléchargez dès maintenant l’application Daba pour commencer à constituer votre portefeuille BRVM dès aujourd’hui.

XOF 1 = USD 0.0016 as of February 18, 2024.

Divulgation : Cet article a été publié à l’origine sur Sika Finance et régénéré avec l’IA.

February 18, 2024
Top 9 Trends That Shaped The BRVM In 2023

One of the key questions investors looking to diversify their portfolios often ask is, “Where to invest in Africa?” African stocks offer some of the most promising opportunities for retail and institutional investors.

In this blog, we explore some of the standout trends on the bourse last year and why investors interested in Africa should look to the Bourse Régionale des Valeurs Mobilières (BRVM), the regional stock exchange serving eight francophone West African countries.

What is the BRVM?

The Bourse Régionale des Valeurs Mobilières (BRVM) serves as the regional stock exchange for the West African Economic and Monetary Union (WAEMU) member states.

These include Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.

Despite facing challenges like inflation and political tensions, the BRVM demonstrated resilience in 2023, with its composite index showing consistent growth.

1. BOA, Sonatel, Orange Lead The Pack

Last year, 21 stocks experienced prosperous periods, witnessing notable capital gains, while 23 stocks ended in decline, with 2 maintaining stability.

The finance and public services sectors notably contributed to the positive direction of the BRVM stock market, recording gains of 14.45% and 8.64%, respectively.

Notably, stocks within these sectors, such as Sonatel and Orange Côte d’Ivoire, played a pivotal role in this performance. BOA CI emerged as the top performer, boasting an impressive 86.35% gain, fueled by opportunities within the Ivorian banking sector.

The BRVM Composite, the comprehensive performance indicator, exhibited a modest initial growth to 203.22 points (+0.46%). However, it concluded the year with a notable surge of 5.38%, reaching 214.15 points, marking its third consecutive year of growth.

Want to diversify your portfolio? BRVM’s bellwether stocks offer promising opportunities for investors. Check out the Daba app to access them.

2. Increased Dividend Distribution

Despite challenges in 2022 and cautious directives from the BCEAO regarding dividend distributions from banks, BRVM-listed companies significantly increased shareholder remuneration in 2023. Dividends distributed to investors rose by 25.82%, totaling 647.8 billion FCFA.

Companies such as Sonatel, Orange CI, Société Générale CI, Ecobank CI, and Société Ivoirienne de Banque stood out by distributing substantial sums to their shareholders.

3. Brandon McCain Acquires Shares in BICICI

Brandon McCain Capital, led by Ahmed Cissé, acquired a 19.11% stake in BICICI from the SUNU bancassurance group. This transaction, valued at 22.12 billion FCFA, marks a significant change in BICICI’s shareholding structure.

4. Vista Group Negotiates Oragroup Share Repurchase

The Vista Group engaged in discussions for the repurchase of ECP’s shares in Oragroup. This agreement, with a consortium led by Emerging Capital Partners, aims to make Vista the majority shareholder of Oragroup, holding over 61% of shares.

However, valuation discrepancies between ECP and Simon Tiemtoré’s group pose challenges to the deal’s completion.

5. BRVM Surpasses 8 Trillion FCFA Mark

A significant milestone achieved by the BRVM in 2023 was its historic crossing of the 8,000 billion FCFA mark in market capitalization. This momentous occasion occurred on September 12, 2023, propelled by notable peaks in Société Générale CI and Orange CI stocks amid widespread increases.

Subsequently, on September 20, 2023, the BRVM ascended to become the fifth-largest market in Africa, boasting a market capitalization of 12.861 billion dollars, surpassing the Nairobi stock exchange’s capitalization of 9.77 billion dollars.

The listing of Orange Côte d’Ivoire at the end of 2022 significantly contributed to this achievement, accounting for around 20% of the overall market capitalization.

Despite a decline in overall volume transacted by 45.8% compared to 2022, the value of transactions increased by 41.2%, reaching 246 billion FCFA in 2023, reflecting positive market evolution.

Looking for a simple way to tap into the BRVM growth story? Daba offers a seamless experience for investors. Join us today and begin your journey!

6. Credit d’Afrique Group’s Acquisition of Alios Finance

On December 12, Tunisie Leasing et Factoring announced its agreement with Credit d’Afrique Group, led by successful entrepreneur Serge BILE, for the acquisition of its subsidiaries.

This acquisition includes majority shares in Alios Finance subsidiaries in Ivory Coast, Cameroon, and Gabon. While the Ivorian subsidiary faced financial challenges, this sale potentially stemmed from the subsidiaries’ financial performance.

Safca, controlled at 52.02% by Alios Finance, experienced a significant increase of 47.16% in its stock value at BRVM by the year’s end.

7. Historic Highs for Ecobank CI, Société Générale CI, and SIB

2023 saw certain stocks reaching their highest prices since their introduction to the BRVM. Notably, Ecobank CI, Nestlé CI, Orange CI, Société Générale CI, and SIB achieved significant milestones in their price evolution.

These developments, while reflecting positive market sentiment, may impact profits, dividends, and net assets. Investors’ high expectations could lead to increased price-earnings ratios and a decline in average profitability, affecting stocks’ attractiveness based on dividend yield.

8. Highest Returns Offered During Publications

With the release of financial statements for 2022 during 2023, several companies stood out for the level of shareholder remuneration they offered. BOA BF led the rankings with a notable dividend yield of 11.09%, followed by Palmci at 11.05%.

Nestlé CI, BOA CI, and SOGB rounded out the top 5 with respective returns of 10.79%, 10.40%, and 10.30%. This indicator, with an average dividend yield of more than 10%, contributed to reinforcing investors’ confidence in the stock market.

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9. Sonatel’s Concessions

Despite its long-standing dominance, Sonatel found itself displaced as the market capitalization giant at BRVM, ceding the top position to its Ivorian counterpart, Orange CI.

Orange Côte d’Ivoire’s successful IPO, the largest ever conducted on the BRVM market, triggered market excitement, propelling its stock value by around 15% in just two sessions.

However, post-IPO consolidation allowed Sonatel to reclaim its position, now sharing the market dominance with Orange CI, collectively commanding over 42% of the overall market capitalization.

Why You Should Invest In Stocks On West Africa’s BRVM

Investing in African stocks, particularly through platforms like the BRVM, offers investors a gateway to diverse and promising opportunities.

By understanding market trends, strategic developments, and sectoral performance, investors can make informed decisions on where and how to invest in Africa’s thriving stock markets, unlocking the continent’s growth potential and contributing to long-term investment success.

Daba’s cutting-edge investment platform provides investors with a seamless and effective way to discover, trade, and monitor investments on the BRVM. Get the Daba application now to start building your BRVM portfolio today.

XOF 1 = USD 0.0016 as of February 18, 2024.

Disclosure: This article was originally published on Sika Finance and regenerated with AI.

February 18, 2024
BRVM: The Gateway To West Africa’s Potential

With strong fundamentals and currency stability tied to the Euro, francophone West Africa provides viable investment prospects. The BRVM serves as the portal through which investors can capitalize.

Back in 2018, BRVM CEO Dr. Edoh Kossi Amenounve met with investors in London conveying an optimistic message: WAEMU economies had averaged 6% GDP growth annually over the prior half-decade.

This robust expansion has continued, with average growth above 5% each year except in 2020 when COVID-19 stalled global economies.

These economies are Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo, and in 2024, five of them feature among the world’s ten fastest-growing economies projected by the IMF.

With this growth, francophone West Africa offers some of the best investment prospects on the continent.

And the BRVM stock exchange serves as the portal through which investors can capitalize.

Born From a Shared Vision

A unified cross-border stock exchange serving all eight WAEMU countries, the Bourse Régionale des Valeurs Mobilières SA (BRVM) was founded in 1998 through a shared vision of the member states.

Headquartered in Abidjan, Ivory Coast, it serves as the common stock exchange for the 140 million people of the region.

The exchange was created to harness the collective strengths of the region’s economies.

It operates on the CFA Franc, the common currency for all francophone African member states pegged to the Euro, overseen by the Central Bank of West African States.

This offers foreign exchange stability and predictability to investors.

The WAEMU also shares a common financial regulator, harmonizing oversight across borders.

Nearly three decades of growth

Starting with just 35 listings, the BRVM has expanded rapidly over the past 26 years.

The BRVM was Africa’s top-performing stock exchange in 2015, notching up a 17.7% increase in its benchmark composite index.

This helped cement its status as one of Africa’s leading exchanges, joining the ranks of bourses in countries like Nigeria, Morocco, and Kenya.

After a few slower years, it saw a strong rebound in 2021, appreciating 39.2% – the second highest in Africa.

In December 2022, Orange Côte d’Ivoire—Ivory Coast’s largest mobile operator—was listed on the BRVM via an oversubscribed IPO that raised a record $236 million on the exchange.

The stock has so far returned 46.77% (taking its juicy dividends into account) since the landmark listing, which added $2.5bn to the exchange’s $12bn equity market cap, spread across 46 listed companies.

These include telecom leader Sonatel, electricity provider CIE, pan-African lender Ecobank, and banking giants like Société Générale, Bank of Africa, and Oragroup. Multinationals like Nestlé and TotalEnergies are also listed.

Beyond stability and scale, the BRVM also offers attractive dividend yields averaging 6-8%—far outpacing typical yields in most developed markets.

The exchange saw its overall market capitalization more than double between 2019 and the end of 2022, from 9 trillion CFA francs to over 13 trillion CFA francs (equivalent to about $23 billion).

By the end of 2023, it had 123 bond lines, 46 listed companies—including major firms like Sonatel, Onatel, and Société Generale Côte d’Ivoire—and had become one of the largest stock exchanges in Africa based on market cap.

In September, the equities component of the market crossed 8 trillion CFA francs in market capitalization for the first time, reflecting the acceleration of West Africa’s economic expansion.

Up to eight of the stocks on the exchange posted double-digit share price gains last year.

Alongside this growth, the exchange has innovated to broaden its appeal.

It introduced sharia-compliant Islamic bond (sukuk) listings in 2016 and a year later, it launched a new board to improve SME financing access.

Access to funding remains a major hurdle for entrepreneurs and small businesses across Africa.

This initiative aims to connect promising smaller companies with much-needed long-term capital from investors who can purchase stakes via the BRVM.

With easier paths to raise equity financing, dynamic SMEs across countries like Côte d’Ivoire, Senegal, and Burkina Faso can expand and drive economic growth.

Stability amid currency turbulence

A major advantage of the BRVM is its use of the euro-pegged CFA franc.

This provides unmatched currency stability in an often turbulent continent for monetary policy.

Investors can be reassured their returns will not be eroded by sudden exchange rate swings or high inflation.

By contrast, equities traded on national exchanges like Nigeria, South Africa, and Ghana carry significant currency risk.

For instance, the Nigerian Exchange’s All-Share Index returned 45.9% in 2023, its highest ever on record.

But a 55% devaluation of the Nigerian naira against the US dollar meant the stock market returned a negative 29.34% to foreign investors.

The BRVM’s euro peg slashes such risk for offshore investors.

Companies listed on the BRVM also benefit from standardized regulations and trading infrastructure across the region.

In addition, strict governance and oversight by regional regulator AMF UMOA (Autorité des Marchés Financiers de l’Union Monétaire Ouest Africaine) enhance investor protections.

The regulator recently suspended trading of a listed firm, EVIOSYS Packaging SIEM, for non-compliance with listing rules – underscoring its commitment to transparency and compliance.

Liquidity challenges linger

Despite its strengths, the BRVM faces some lingering challenges.

Liquidity remains relatively low compared to larger exchanges.

The market is dominated by a few large Ivorian companies like Sonatel and Ecobank, and trading volumes are thin for other listings.

More so, 35 or 76% of companies listed on the bourse are Ivorian.

Attracting more listings, especially from SMEs and more WAEMU countries apart from Cote d’Ivoire, and diversifying its investor base will aid liquidity.

Nonetheless, the BRVM remains a symbol of successful regional economic integration in Africa.

It is one of only two unified, region-wide stock exchanges on the continent, alongside the BVMAC shared by six francophone Central African states.

Integrating with the wider West Africa

The BRVM is a pioneering model of regional financial and economic integration in Africa.

By pooling their markets into a single cross-border exchange, the eight WAEMU countries have created a far more efficient platform for fundraising and investment compared to fragmented national exchanges.

As the first and only fully integrated regional stock exchange in the world, the BRVM offers smaller member countries like Benin, Guinea-Bissau, and Niger access to capital and scale they would struggle to achieve on their own.

It also harmonizes regulation and market infrastructure across borders.

Given this promise, the exchange is now working to build on its success through closer West Africa market integration.

It is collaborating with exchanges in Nigeria and Ghana on integration plans to develop a unified trading platform.

This could significantly expand opportunities for investors and businesses.

And with investment platforms like Daba providing unprecedented retail access to the exchange through a mobile app, new investors can easily tap into the BRVM’s offerings and participate in the growth opportunities of public African companies.

With strong economic growth projected across West Africa, the BRVM offers an exciting investment destination.

But the exchange is more than just an investment opportunity – it is a pioneer of regional integration and a model for capital market development across Africa.

Its integration strengths, currency stability, governance, and steady innovations make it a model for exchanges across Africa and an attractive option for international investors seeking new frontier markets.

As one of Africa’s standout regional initiatives, the BRVM provides a gateway into francophone West Africa’s massive potential for investors seeking new frontiers.

This article was first published in Pulse54, Daba’s bi-monthly newsletter that dives into what’s old and new in Africa’s investment landscape. Sign up here

February 1, 2024
Why Investors Are Excited About Senegalese T-Bond

Senegal is set to issue a 200 billion CFA francs ($330 million) treasury bond in three tranches, attracting significant investor interest.

With the West African nation boasting one of Africa’s fastest-growing economies, investors have good reason to be excited.

Here are five factors driving investor enthusiasm for the bond issuance:

1. Quality of the Issuer

Senegal has established itself as a model of political stability in West Africa. The country has seen peaceful transitions of power since independence in 1960.

Recently, President Macky Sall announced he would not seek a third term in the 2024 elections, easing earlier political tensions.

Also Read: 2024 Outlook – A Year of Elections in Africa

The country has also established itself as a frequent and reliable participant in the West African Economic and Monetary Union’s (WAEMU) capital market. In 2023 alone, the Senegalese government conducted 44 bond and note issuances on this platform.

Dakar, Senegal

Global credit rating agencies Standard & Poor’s and Moody’s have classified Senegal at investment grade levels B+ and Ba3 respectively, underscoring the country’s improving creditworthiness.

The IMF also forecasts Senegal, already WAEMU’s second-largest economy, to record Africa’s second-highest economic growth rate this year and the world’s fifth.

2. Steady Income Stream

Like most government bonds, Senegal’s offering will provide investors with regular interest payments over the lifespan of the bond, enabling a steady stream of income.

The 5-year tranche pays a 6.25% coupon, the 7-year pays 6.45%, and the 10-year pays 6.65%, offering investors a robust and steady semi-annual income stream and ensuring healthy yields especially given current global rate trends.

3. Low Default Risk

Backed by a sovereign government, sovereign bonds like Senegal’s pose extremely little default risk compared to corporate paper. While corporate bonds offer juicy yields, they are only as reliable as the issuing company’s financial health.

Senegal has never defaulted on its obligations. Investors can count on the government to make good on its promised coupon payments and principal redemption.

President Macky Sall

4. Tax Advantages

Resident investors will enjoy exemption from taxes on interest payments and repayment of principal. This combination of healthy yields absent of taxes renders Senegalese bonds an attractive fixed-income proposition.

For foreign investors, income is subject to applicable national tax regimes.

5. Liquidity & Accessibility

Sovereign bonds tend to trade more actively owing to higher issuance volumes, ensuring healthy liquidity for investors.

The bonds can be bought directly from the government or through online investment platforms such as Daba.

They will trade on the francophone West Africa regional stock exchange, BRVM, providing liquidity for investors. The government reserves the right to repurchase bonds on the open market.

So investors can sell holdings fairly easily.

The Senegalese bond will trade on the francophone West Africa regional stock exchange, BRVM, providing liquidity for investors.

Investors can also conveniently purchase Senegalese bonds through brokerages or mutual funds without directly participating in auctions. The ability to relatively easily cash out investments before maturity provides additional flexibility.

With Senegal’s strong economic growth prospects and credit profile, combined with the reliability and advantages of a sovereign bond, investors can gain exposure to one of Africa’s star economies while earning an attractive risk-free return on their capital.

For more content on investment trends and opportunities, check out the Daba application today!

January 30, 2024
Récapitulatif 2023 : Meilleures performances des actions sur la BRVM

La Bourse Régionale des Valeurs Mobilières (BRVM) est la bourse régionale des États membres de l’Union Économique et Monétaire Ouest-Africaine (UEMOA) : Bénin, Burkina Faso, Côte d’Ivoire, Guinée-Bissau, Mali, Niger, Sénégal et Togo.

La bourse est située à Abidjan, en Côte d’Ivoire, mais elle dispose de bureaux de marché dans chacun des pays affiliés.

Au cours d’une année impressionnante pour le marché boursier, jusqu’à huit actions ont enregistré des gains à deux chiffres en 2023, tandis que la capitalisation boursière a dépassé pour la première fois les 8 billions de XOF (environ 13 milliards de dollars) en septembre.

Dans le cadre de notre série de récapitulatifs 2023, nous présentons un aperçu des actions les mieux performantes sur la bourse régionale, ainsi que des entreprises qui les sous-tendent, classées par appréciation du cours de l’action.

1. Bank of Africa (Côte d’Ivoire) – +86,4%

Bank of Africa Côte d’Ivoire SA est une banque basée en Afrique, située à Abidjan, en Côte d’Ivoire. Elle propose des produits et services financiers et d’assurance à des clients tels que des professionnels, des particuliers, des étudiants et des communautés locales.

Bank of Africa – Côte d’Ivoire est cotée à la BRVM sous le symbole “BOAC”. Son cours actuel est de 6 750 XOF, ayant augmenté de plus de 80 % au cours de la dernière année.

Bank of Africa – Côte d’Ivoire est actuellement la 15e action la plus précieuse de la BRVM, avec une capitalisation boursière de 135 milliards de XOF, soit environ 1,71 % du marché boursier de la BRVM.

C’est la 16e action la plus échangée à la Bourse de la BRVM au cours des trois derniers mois.

2. Société Multinationale de Bitumes (Côte d’Ivoire) – +54,69%

Société Multinationale de Bitumes (SMB) SA est spécialisée dans le raffinage du pétrole brut pour la production et la commercialisation de bitume routier et de sous-produits.

SMB est cotée à la BRVM sous le symbole “SMBC”. Elle est actuellement la 22e action la plus précieuse de la bourse, avec une capitalisation boursière de 81,1 milliards de XOF, soit environ 1,02 % du marché des actions.

Le cours actuel de SMB Côte d’Ivoire est de 10 400 XOF. Il a augmenté de plus de 54 % l’année dernière et est la 31e action la plus échangée au cours des trois derniers mois.

3. Alios Finance (Côte d’Ivoire) – +47,2%

Alios Finance Safca SA, anciennement Société Africaine de Crédit Automobile (SAFCA) SA, propose des services financiers, y compris le financement de voitures, d’équipements agricoles ou commerciaux, y compris d’équipements d’occasion.

Elle est cotée à la BRVM sous le symbole “SAFC” et est actuellement la 41e action la plus précieuse de la bourse, avec une capitalisation boursière de 8,73 milliards de XOF, représentant environ 0,11 % du marché des actions.

Le cours actuel de l’action est de 1 075 XOF, et elle est la deuxième action la plus échangée à la Bourse de la BRVM au cours des trois derniers mois.

4. SGB (Côte d’Ivoire) – +38,3%

La Société Générale de Banques en Côte d’Ivoire propose des produits et services bancaires aux particuliers, aux entreprises, aux institutions et aux professionnels en Côte d’Ivoire.

La société offre des comptes, y compris des produits bancaires à distance et des transferts d’argent ; des crédits, tels que des prêts immobiliers ; des assurances vie et non-vie ; des produits d’épargne et d’investissement ; et des programmes de fidélité pour les particuliers.

SGB est cotée à la BRVM sous le symbole “SGBC” et est actuellement la troisième action la plus précieuse, avec une capitalisation boursière de 492 milliards de XOF, représentant environ 6,21 % du marché des actions.

SGB Côte d’Ivoire est la 29e action la plus échangée au cours des trois derniers mois.

5. Ecobank (Côte d’Ivoire) – +37,5%

Ecobank Côte d’Ivoire SA est une banque commerciale qui propose divers produits et services. Outre la Côte d’Ivoire, la société opère également au Mozambique, au Nigeria et en Tanzanie, entre autres.

Ecobank est cotée à la BRVM sous le symbole “ECOC” et est actuellement la quatrième action la plus précieuse, avec une capitalisation boursière de 369 milliards de XOF, représentant environ 4,66 % du marché des actions.

Le cours actuel de l’action Ecobank Côte d’Ivoire est de 6 700 XOF, et elle est la septième action la plus échangée à la Bourse au cours des trois derniers mois.

6. Bank of Africa (Burkina Faso) – +34,2%

Bank of Africa Burkina Faso SA est une banque commerciale opérant dans les secteurs de la vente au détail, des entreprises et des marchés financiers. La banque propose des produits financiers tels que des comptes de dépôt, y compris des comptes chèques, d’épargne et à terme, et accorde des prêts aux particuliers et aux entreprises.

Le Burkina Faso est coté à la BRVM sous le symbole “BOABF”. La Bank of Africa – Burkina Faso est actuellement la dixième action la plus précieuse, avec une capitalisation boursière de 151 milliards de XOF, représentant environ 1,9 % du marché des actions.

Le cours actuel de la Bank of Africa – Burkina Faso est de 6 850 XOF, et elle est la 35e action la plus échangée à la Bourse au cours des trois derniers mois.

7. Bank of Africa (Sénégal) – +30,6%

Bank of Africa Sénégal propose une gamme de produits et services bancaires aux particuliers et aux entreprises. BOA Sénégal opère en tant que filiale du Groupe BOA, une société holding qui offre des services financiers tels que la banque et l’assurance par le biais de ses filiales en Afrique.

Elle est cotée à la BRVM sous le symbole “BOAS” et est actuellement la 25e action la plus précieuse, avec une capitalisation boursière de 76,2 milliards de XOF, représentant environ 0,962 % du marché des actions.

La Bank of Africa – Sénégal est la 19e action la plus échangée au cours des trois derniers mois, avec un cours actuel de 3 175 XOF.

8. Air Liquide (Côte d’Ivoire) – +22,9%

Air Liquide Côte d’Ivoire SA, anciennement Société Ivoirienne d’Oxygène et d’Acétylène SA (SIVOA), est une entreprise basée en Côte d’Ivoire opérant dans l’industrie chimique.

Elle produit des gaz industriels et médicaux, des équipements et consommables médicaux, des équipements de découpe et de soudage, des matériaux d’hygiène et des produits de lutte contre l’incendie. Elle offre également des services d’installation et de maintenance.

Air Liquide est cotée à la BRVM sous le symbole “SIVC” et est actuellement la 42e action la plus précieuse, avec une capitalisation boursière de 7,25 milliards de XOF, représentant environ 0,092 % du marché des actions.

Le cours actuel de l’action Air Liquide Côte d’Ivoire (SIVC) est de 830 XOF, et elle est la sixième action la plus échangée à la BRVM au cours des trois derniers mois.

1 XOF = 0,0017 USD au 7 janvier 2024.

Crédits d’information : BRVM, African Exchanges, Reuters Markets

January 7, 2024
2023 Recap: Best-Performing Stocks On BRVM

The Bourse Régionale des Valeurs Mobilières (BRVM) is the regional stock exchange of the member states of the West African Economic and Monetary Union (WAEMU): Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.

The exchange is located in Abidjan, Côte d’Ivoire but maintains market offices in each of the affiliated countries.

In an impressive year for the stock market, up to eight of the stocks posted double-digit share price gains in 2023 while the market capitalization surged past the XOF 8 trillion mark (around $13bn) for the first time in history in September.

As part of our 2023 recap series, we provide an overview of the best-performing stocks on the regional bourse—and the companies behind them—ranked by share price appreciation.

1. Bank of Africa (Cote d’Ivoire) – +86.4%

Bank of Africa Cote d’Ivoire SA is an Africa-based bank situated in Abidjan, Ivory Coast. It provides financial and insurance products and services to such customers as professionals, individuals, students, and local communities.

Bank of Africa – Côte d’Ivoire is traded on the BRVM under the ticker symbol “BOAC”. Its current share price is XOF 6,750 having surged more than 80% over the past year.

Bank of Africa – Côte d’Ivoire is currently the 15th most valuable stock on the BRVM with a market capitalization of XOF 135 billion, which is about 1.71% of the equity market.

It is the 16th most traded stock on the Exchange over the past three months.

2. Societe Multinationale de Bitumes (Cote d’Ivoire) – +54.69%

Societe Multinationale de Bitumes (SMB) SA is engaged in refining crude oil for the production and marketing of road bitumen and by-products.

SMB is traded on the BRVM under the ticker symbol “SMBC”. It is currently the 22nd most valuable stock on the bourse with a market capitalization of XOF 81.1 billion, which is about 1.02% of the equity market.

The current share price of SMB Côte d’Ivoire is XOF 10,400. It rose more than 54% last year and is the 31st most traded stock over the past three months.

3. Alios Finance (Cote d’Ivoire) – +47.2%

Alios Finance Safca SA, formerly Societe Africaine de Credit Automobile (SAFCA) SA, provides financial services including financing of motor cars, and agricultural or commercial equipment, including second-hand equipment.

It is traded on the BRVM under the ticker symbol “SAFC” and is currently the 41st most valuable stock on the exchange with a market capitalization of XOF 8.73 billion, which makes up about 0.11% of the equity market.

The stock’s current price is XOF 1,075 and it is the second most traded stock on the BRVM over the past three months.

4. SGB (Cote d’Ivoire) – +38.3%

Société Générale de Banques en Côte d’Ivoire provides banking products and services to individuals, corporations, institutions, and professionals in the Ivory Coast.

The company offers accounts, including remote banking products and money transfers; credits, such as real estate loans; life and non-life insurance; savings and investments; and loyalty programs for individuals.

SGB is traded on the BRVM under the ticker symbol “SGBC” and is currently the third most valuable stock with a market capitalization of XOF 492 billion, which is about 6.21% of the equity market.

SGB Côte d’Ivoire is the 29th most traded stock over the past three months.

5. EcoBank (Cote d’Ivoire) – +37.5%

Ecobank Cote d’Ivoire SA is a commercial bank that provides several products and services. Apart from the Ivory Coast, the Company also operates in Mozambique, Nigeria, and Tanzania, among others.

Ecobank is traded on the BRVM under the ticker symbol “ECOC” and is currently the fourth most valuable stock with a market capitalization of XOF 369 billion, which is about 4.66% of the equity market.

The current share price of Ecobank Côte d’Ivoire is XOF 6,700 and is the seventh most traded stock on the Exchange over the past three months.

6. Bank of Africa (Burkina Faso) – +34.2%

Bank of Africa Burkina Faso SA is a commercial bank operating in the retail, corporate, and financial markets. The Bank provides financial products such as deposit accounts, including checking, savings, and time deposits, and extends loans to individuals and businesses.

Burkina Faso is traded on the BRVM under the ticker symbol “BOABF”. Bank of Africa – Burkina Faso is currently the 10th most valuable stock with a market capitalization of XOF 151 billion, which makes up about 1.9% of the equity market.

The current share price of Bank of Africa – Burkina Faso is XOF 6,850 and is the 35th most traded stock on the Exchange over the past three months.

7. Bank of Africa (Senegal) – +30.6%

Bank of Africa Senegal provides a range of banking products and services to individuals and businesses. BOA Senegal operates as a subsidiary of BOA Group, a holding company that provides financial services such as banking and insurance through its subsidiaries in Africa.

It is traded on the BRVM under the ticker symbol “BOAS” and is currently the 25th most valuable stock with a market capitalization of XOF 76.2 billion, which makes up about 0.962% of the equity market.

Bank of Africa – Senegal is the 19th most traded stock over the past three months with a current share price of XOF 3,175.

8. Air Liquide (Cote d’Ivore) – +22.9%

Air Liquide Cote d’Ivoire SA, formerly Societe Ivoirienne d Oxygene et d Acetylene SA, (SIVOA), is an Ivory Coast-based company engaged in the chemical industry.

It produces industrial and medical gases, equipment and medical consumables, cutting and welding equipment, hygiene materials, and firefighting products. It also provides installation and maintenance services.

Air Liquide is traded on the BRVM under the ticker symbol “SIVC” and is currently the 42nd most valuable stock with a market capitalization of XOF 7.25 billion, which is about 0.092% of the equity market.

The current share price of Air Liquide Côte d’Ivoire (SIVC) is XOF 830 and it is the sixth most traded stock on the BRVM over the past three months.

XOF 1 = USD 0.0017 as of January 7, 2024.

Information credits: BRVM, African Exchanges, Reuters Markets

January 7, 2024
Comment fonctionne l’investissement dans les startups ?

Dans le paysage commercial dynamique d’aujourd’hui, les startups se sont imposées comme les moteurs de l’innovation, perturbant les industries traditionnelles et façonnant l’avenir.

Ce post vise à démystifier le monde des startups, en éclairant ce qu’elles sont, comment fonctionne l’investissement dans les startups, comment les investisseurs peuvent gagner de l’argent en investissant dans les startups, et le processus de sortie d’un investissement dans une startup.

Qu’est-ce qu’une startup ?

Une startup est une jeune entreprise à ses débuts, généralement fondée par des entrepreneurs avec une idée révolutionnaire ou une solution unique à un problème.

Les startups se caractérisent par leur potentiel de croissance rapide, leur évolutivité et leur vision de perturber ou de créer de nouveaux marchés. Elles opèrent souvent dans des secteurs axés sur la technologie, mais peuvent s’étendre à diverses industries.

Qu’est-ce que l’investissement dans les startups ?

L’investissement dans les startups consiste à fournir un soutien financier à des entreprises en phase de démarrage en échange d’une participation au capital.

Ce processus se déroule généralement lors de différentes phases de financement, où les startups lèvent des capitaux pour stimuler leur croissance. Les investisseurs peuvent participer à ces étapes ou phases de différentes manières, comme l’investissement providentiel, les fonds de capital-risque ou les plateformes de financement participatif.

En règle générale, l’investissement dans les startups se déroule à différentes étapes, notamment le démarrage, la série A, la série B, etc., jusqu’à l’introduction en bourse (IPO) et la sortie, etc., chaque étape représentant une phase distincte de la croissance et du développement d’une startup.

Il est important de noter que toutes les startups ne passent pas par toutes ces étapes, et la chronologie et les besoins de financement peuvent varier considérablement.

Lors de l’investissement dans les startups, la due diligence est cruciale. Les investisseurs analysent en profondeur le modèle commercial de la startup, son potentiel de marché, l’expertise de l’équipe, le paysage concurrentiel et les projections financières.

En menant des recherches approfondies, les investisseurs peuvent identifier les startups prometteuses ayant plus de chances de réussir.

Comment pouvez-vous gagner de l’argent en investissant dans les startups ?

Investir dans les startups offre le potentiel de rendements significatifs, mais comporte également des risques plus élevés par rapport aux voies d’investissement traditionnelles. Voici quelques moyens pour les investisseurs de gagner de l’argent grâce aux investissements dans les startups :

Appréciation du capital : À mesure qu’une startup se développe et atteint des étapes clés, la valeur de ses actions peut augmenter. Les investisseurs qui ont acheté des actions à un stade précoce peuvent bénéficier de l’appréciation du capital lorsque l’entreprise réussit et attire d’autres investissements ou devient publique.

Dividendes ou distribution de bénéfices : Certaines startups peuvent générer des bénéfices à un stade précoce. Dans de tels cas, les investisseurs peuvent recevoir des dividendes ou des distributions de bénéfices, fournissant ainsi un flux de revenus régulier.

Acquisition ou fusion : Les startups dotées de produits ou de technologies convaincants deviennent souvent des cibles d’acquisition attrayantes pour de plus grandes entreprises. Si une startup est acquise ou fusionne avec une autre entreprise, les investisseurs peuvent réaliser un profit de la vente de leurs actions. Par exemple, Instagram, l’application populaire de partage de photos, a été acquise par Facebook en 2012 pour environ 1 milliard de dollars. Cette acquisition a généré des rendements importants pour les investisseurs de première heure.

Introduction en bourse (IPO) : Une autre stratégie de sortie potentielle pour les investisseurs dans les startups est une IPO. Lorsqu’une startup devient publique, les investisseurs peuvent vendre leurs actions sur le marché boursier, réalisant des gains si la valorisation de l’entreprise a augmenté. En 2019, le géant du commerce électronique africain Jumia est entré en bourse, offrant à ses premiers investisseurs la possibilité de sortir et de réaliser des profits.

Marché secondaire : Les investisseurs peuvent vendre leurs actions sur un marché secondaire, où des investisseurs privés achètent et vendent des actions de sociétés non cotées en bourse. Cela permet aux investisseurs de sortir de leurs investissements avant une IPO ou une acquisition. SharesPost et EquityZen sont des exemples de plateformes de marché secondaire qui facilitent l’achat et la vente d’actions de startups.

En conclusion, investir dans les startups peut être une entreprise gratifiante mais risquée. Comprendre la nature des startups, effectuer une due diligence approfondie et diversifier son portefeuille d’investissement sont des étapes essentielles pour réussir dans l’investissement dans les startups.

October 16, 2023