Tag: South Africa

  • Building a Winning Fund: Portfolio Strategies and Tips

    Building a Winning Fund: Portfolio Strategies and Tips

    For private equity fund managers and venture capitalists, having a well-constructed portfolio strategy is critical for attracting limited partners and generating outsized returns.

    Your portfolio construction is the roadmap and investment thesis for your entire fund life cycle. It outlines exactly how you plan to allocate capital, source deals, make investment decisions, manage your portfolio companies, and ultimately drive successful exits.

    Key Elements of an Effective Portfolio Strategy

    While every VC firm will have its unique approach, some core elements should be included in any robust portfolio construction plan:

    Investment Thesis & Focus Areas
    This is the foundation of your strategy, defining the sectors, stages, geographies, business models, or other criteria around which you will concentrate your investments. A focused thesis allows you to develop true expertise and repeatability.

    Asset Allocation & Diversification
    How will you construct a balanced portfolio across risk profiles, asset classes, holding periods, and ownership targets? Understanding your diversification parameters upfront is key.

    Capital Reserve Strategy
    Top firms set aside over 60% of their fund for follow-on investment rounds into their winners. Having ample reserves to double/triple down on your successes is crucial.

    Target Ownership Levels
    What are your ideal ownership percentages for companies at different stages? This impacts your potential upside as well as governance rights.

    Investment Sizing & Pace
    You’ll need to model out your anticipated check sizes for initial vs. follow-on rounds, the number of companies to invest in, and the general cadence of deploying capital each year.

    Return Objectives & Performance Metrics
    Determine your target return multiples, IRRs, time horizons, and other quantifiable goals to align your team and LPs. Both financial and impact metrics are important.

    Portfolio Management Approach
    How will you provide strategic guidance, governance, and support to your portfolio companies? Outline the value-adds and resources you can provide entrepreneurs.

    Daba works with leading institutional investors and fund managers to craft highly focused investment strategies and identify the most promising startups to invest in across Africa. Fill out this form on our website to express your interest.

    Steps for Developing Your Strategy

    While specific tactics will vary, most successful VC firms follow a similar process for developing their portfolio construction models:

    1. Define your differentiated investment thesis
      This is the starting point. What is your edge and unique view on opportunities? It should be focused yet allow for some diversification.
    2. Evaluate market trends and opportunities
      Analyze various sectors, stages, business models, etc., to identify the most compelling areas for investment aligned with your thesis.
    3. Set clear objectives and success metrics
      Establish targets for ownership levels, check sizes, fund size, returns, impact metrics, and other KPIs you’ll measure.
    4. Determine optimal investment structure and policies
      The fund’s legal structure, processes for decision-making, valuations, reserves, etc., should codify your strategy.
    5. Build out your deal-sourcing engine
      Develop a proactive pipeline management process and leverage tools/relationships to uncover proprietary deals.

    Daba’s platform provides the tools and expertise to refine your investment strategy and optimize your portfolio for superior performance. Are you an Africa-focused institutional investor looking to maximize returns? Sign up here for our investing solutions.

    Continually Evaluate and Refine

    Remember that portfolio construction is not a one-and-done exercise. As market conditions evolve and you gain better visibility into your current investments, you’ll need to periodically reevaluate whether your original strategy aligns with your goals. Be prepared to adjust your approach as needed to sustain performance.

    The importance of a thoughtful, sustainable portfolio construction strategy for venture capital and private equity funds cannot be overstated.

    By laying this foundation from the outset and leveraging innovative platforms like Daba, you greatly improve your chances of not just meeting, but exceeding your return objectives over the long run—showing LPs you have a repeatable model for generating alpha and convincing them to invest with you.

    Daba provides unparalleled support and insights to help you navigate the complexities of investing in Africa and emerging markets. Trust Daba to be your partner in building a robust, high-performing portfolio. Tap here to get started.

  • Rising Inflation: What Does it Mean for Your 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.

  • How to Pick Stocks: A Guide For Beginners

    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.

  • How to Raise Venture Funding in a Downturn

    How to Raise Venture Funding in a Downturn

    Raising capital for startups is tough, and it’s even harder during an economic downturn. Venture capitalists (VCs) are now more selective, and startups find it more challenging to secure funds. Investors scrutinize financials more closely, and it takes longer to make decisions. Despite these challenges, the fundamentals remain the same: investors look for long-term prospects and strong founding teams.

    In 2022, venture capital was abundant, but by 2023, funding dropped by about half globally. This shift was influenced by rising interest rates, which caused a 3.2% decline in VC capital for every 1% increase in rates. Higher interest rates also made debt financing less attractive due to increased borrowing costs.

    African startups, which had resisted the 2022 funding slowdown, experienced significant drops in 2023, aligning with global trends. Data showed that African startups raised between $2.9 billion and $4.1 billion in 2023, down from $4.6 billion to $6.5 billion the previous year. This reduction was anticipated as deal frequency had already been slowing in the preceding months, indicating investors’ growing caution.

    Despite the difficult environment, there is still hope. VCs have substantial funds (“dry powder”) and deals are still happening, though at a slower pace. Here are strategies for raising venture capital during a downturn:

    1. Start Early

    Fundraising takes longer now, so start earlier than you would have in previous years. Prepare your pitch meticulously, ensuring all financial documents are accurate. Focus on showing how you plan to retain and grow revenue rather than just expansion. Readying your pitch is a multistep process: gather all necessary financial documentation, check for accuracy, and consider presenting a business model that emphasizes stability and revenue growth in the near term.

    2. Restructure Your Budget

    Create a robust budget by forecasting cash flow. Cut operational costs without affecting production, such as reducing office space by having employees work from home. Delay expanding departments or cut vendor costs to manage monthly expenses better. Iron-clad budgets are necessary during growth stages and periods of stagnating revenue. Cash flow forecast sheets can help design a new budget and identify areas to cut costs. Consider measures like holding off on hiring, negotiating better terms with suppliers, or finding more cost-effective ways to operate.

    3. Focus on Successful Products

    Emphasize what’s already working. Investors want to see positive results. In a downturn, consumer spending might drop, but if certain products or services are still doing well, highlight these in your pitch. If your startup has a product or service that continues to generate revenue, make this the centerpiece of your strategy. Investors are reassured by proven success, especially in uncertain times.

    At Daba, we understand the unique challenges faced by startups during economic downturns. Contact us today to discover how our platform can help you navigate these turbulent times and secure the funding you need to grow.

    4. Reduce Burn Rate

    Keep your cash consumption low to avoid running out of money. Reduce spending in non-essential areas. Regularly update your budget and burn rate to show investors you have a solid financial plan. Burn rate, the rate at which a company uses up its capital, should always be monitored. Cutting costs in non-essential areas is a quick way to reduce the burn rate. Consider flexible budgeting and keep adjusting based on revenue and cash flow forecasts.

    5. Extend Your Runway

    Ensure you have at least two years of runway with any new funds. If your runway is short, raise more capital to prevent cash flow problems. Discuss strategies with your investors to avoid constant fundraising, which can hinder execution. The runway is the amount of time a startup can operate before running out of money. Secure enough runway to last through the downturn, and communicate openly with investors about strategies to extend this period. Consider raising additional funds or cutting costs to increase your financial buffer.

    6. Be Proactive

    Address issues like declining revenue or rising costs immediately. Keep your investors informed with transparent financial statements. Monitor cash flow and burn rate closely to avoid surprises. Tackle problems as soon as they arise. If you see a dip in revenue or an increase in costs, take action immediately. Transparency with investors is crucial; provide them with real numbers to back your concerns and show that you’re managing the situation effectively.

    By leveraging Daba’s services, you can streamline your financial operations and maintain a healthy burn rate. Reach out today for tailored advice and strategies on how to weather economic downturns.

    7. Limit New Projects

    Hold off on launching new projects. Focus on maintaining current revenue streams. New projects can be revisited when the economic situation improves. While launching new initiatives can be exciting, during a downturn, it’s safer to focus on what’s already working. Maintain consistent revenue by keeping current clients happy and postponing new ventures until the market stabilizes.

    8. Be Realistic with Valuations

    Accept that high valuations are less common. Down rounds, where shares are sold at a lower price than in previous rounds, are now more frequent. Engage with existing investors early to navigate these challenges. Sky-high valuations are a thing of the past. Be prepared for down rounds and consider investor-friendly terms to avoid them. Engage existing investors early to maintain support and understand their expectations.

    9. Highlight Business Model Fundamentals

    Clearly explain your business model and path to profitability. Investors are cautious and want to see strong financial fundamentals. Show how you plan to use resources efficiently and achieve profitability. Emphasize the fundamentals of your business model. Demonstrate sound unit economics and a clear path to profitability. Investors now prioritize financial stability and resource efficiency.

    10. Leverage Existing Investors

    Target investors who understand your sector and stage of development. Existing investors are valuable as they are familiar with your business and may be more likely to invest additional funds. Deliberately target investors with experience in your sector and stage. Existing investors can be crucial; they understand your business and may be more willing to invest further. They also have a vested interest in your success.

    11. Focus on Founders

    The quality of the founding team remains crucial, especially for early-stage startups. Highlight your expertise and why you are the best person to lead the company. Even in a tougher market, the quality of the founders is a major draw. For early-stage startups, where financials may be sparse, emphasize the founders’ expertise and ability to grow the company.

    12. Consider Alternative Funding Sources

    Look beyond traditional VC funding. Explore grants and philanthropic organizations, especially if your startup addresses common good areas like climate tech. When traditional VC funding is hard to secure, get creative. Look for grants or philanthropic funding, especially if your startup serves the public good, such as in climate tech.

    13. Keep Your Team Motivated

    During tough times, it’s crucial to keep your team motivated. Laying off employees may be unavoidable, but try to keep your top talent engaged and excited about the company’s future. Retaining key staff is vital for growth and stability.

    Effective pitching during a downturn requires balancing optimism with a solid understanding of current realities. Detailed planning, careful execution, and resilience are key. Building relationships and trust with investors is essential, as is leveraging existing investors for support and advice.

    Fundraising is not just about getting money; it’s about forming partnerships. Existing investors, who have already shown faith in you, can be a vital resource. Leverage their experience and willingness to help guide you through tough times.

    In summary, raising capital during a downturn demands meticulous preparation, realistic expectations, and a clear demonstration of your startup’s viability and adaptability. By focusing on what works, managing resources wisely, and maintaining transparent communication with investors, you can navigate these challenging times.

    For more guidance, Daba offers resources to support you at every stage of the fundraising process. Contact us today to get started. Daba’s platform provides unparalleled access to investors, ensuring you have everything you need to succeed in the dynamic African and emerging markets.

  • The Ten Largest Stock Exchanges in Africa by Market Capitalization

    The Ten Largest Stock Exchanges in Africa by Market Capitalization

    African stock markets have experienced robust growth, presenting lucrative opportunities for investors. Discover the ten largest stock exchanges on the continent by market cap as of May 2024.

    African stock markets have experienced robust growth, presenting lucrative opportunities for investors. With 29 operational exchanges and a combined market capitalization of around $1.3 trillion, African bourses contribute over 2% to the global market.

    Some of the oldest and most established exchanges in Africa include the Egyptian Exchange (EGX), founded in 1883, the Casablanca Stock Exchange of Morocco, tracing its roots back to 1929, the Johannesburg Stock Exchange (JSE) established in 1887, and the Nairobi Securities Exchange in Kenya, which dates back to 1954.

    Today, the top five largest stock markets by market capitalization are South Africa’s JSE, the Casablanca bourse, the Botswana Stock Exchange, the Nigerian Exchange (NGX), and EGX. Alongside these titans, sizable exchanges can also be found in countries like Kenya and the West African Economic and Monetary Union (WAEMU) regional exchange serving eight French-speaking nations.

    As we explore the ten largest stock exchanges by market capitalization, discover how Daba can empower your investment journey across Africa’s dynamic markets. Based on the latest data as of May 31, 2024, sourced by Daba Intelligence, here are the ten largest stock exchanges in Africa ranked by market capitalization in US dollars:

    1. Johannesburg Stock Exchange (JSE) – $1,077,135,593,311.44

    The Johannesburg Stock Exchange, founded in 1887, is the largest in Africa with a market capitalization of $1.07 trillion. There are around 354 listed companies, with the largest being Naspers Limited, FirstRand Limited, and Standard Bank Group.

    2. Casablanca Stock Exchange (MASI) – $69,840,114,180.22

    The Casablanca Stock Exchange in Morocco, founded in 1929, is the second-largest stock market in Africa with a market cap of $69.8 billion. The top listed companies include Attijariwafa Bank, Banque Centrale Populaire, and Bank of Africa.

    3. Botswana Stock Exchange (BSE) – $52,461,754,292.20

    With a market capitalization of $52.5 billion, the Botswana Stock Exchange is the third-largest in Africa. Major listed companies include Anglo American Plc, First National Bank Botswana, and Botswana Insurance Holdings.

    Whether you’re an institutional investor seeking reliable trade execution or a retail investor looking to expand your investment horizons, Daba’s user-friendly platform ensures transparency and ease of use. Download our app now to get started.

    How to optimize your investments in Africa with dividend yields
    Tap to Read: How to optimize your investments in Africa with dividend yields

    4. Nigerian Exchange (NGX) – $41,029,161,524.02

    Nigeria’s NGX has a market cap of $41 billion, making it the fourth-largest stock exchange in Africa. Major listed companies include Airtel Africa Plc, MTN Nigeria Communications, Dangote Cement, and BUA Cement.

    5. Egyptian Exchange (EGX) – $40,278,844,587.20

    The Egyptian Exchange, formed by the merger of Alexandria and Cairo stock exchanges, has a market cap of $40.3 billion. Top listed firms include Abu Qir Fertilizers, Alexandria Containers and Goods, and Commercial International Bank.

    Also Read: South African Small-Cap Industrials Offer Investors a Unique Opportunity

    6. BRVM (Bourse Régionale des Valeurs Mobilières) – $13,821,814,055.37

    The regional BRVM stock exchange serving eight West African nations has a market cap of $13.8 billion. About 56 listed companies and major listings include Sonatel, Orange Cote d’Ivoire, and Ecobank Transnational Incorporated.

    7. Nairobi Securities Exchange (NSE) – $13,639,305,859.51

    Kenya’s Nairobi Securities Exchange has a market capitalization of $13.6 billion. Safaricom, Equity Group Holdings, and East African Breweries Limited are its biggest listed companies. Founded in 1954, the NSE is the largest stock market in East Africa with 65 listed companies.

    Investing in Africa’s vibrant markets has never been easier. Daba’s investment services offer personalized strategies to help you maximize returns and manage risk effectively. Download our app now to get started.

    8. Stock Exchange of Mauritius (SEM) – $7,429,084,934.02

    The SEM has a market cap of $7.4 billion, with top listings including MCB Group, Ireland Blyth, and SBM Holdings. Founded in 1989, the Stock Exchange of Mauritius (SEM) covers Mauritius and is based in Port Louis. 56 companies are quoted on the SEM’s official market, while another 42 are quoted on the Development and Enterprise Market (DEM).

    9. Dar es Salaam Stock Exchange – $6,657,926,433.80

    Tanzania’s Dar es Salaam Stock Exchange has a market capitalization of $6.7 billion. Located in Dar es Salaam, the commercial capital and largest city in Tanzania, it was incorporated in September 1996 and trading started in April 1998.

    10. Ghana Stock Exchange (GSE) – $5,709,315,520.89

    Rounding out the top 10 is the Ghana Stock Exchange with a market cap of $5.7 billion. Its major listed companies include Ecobank Transnational, AngloGold Ashanti Plc, and Access Bank Ghana.

    The dynamic growth of African stock exchanges underscores the continent’s increasing significance in global finance. Daba is committed to providing reliable information, transparent services, and seamless investment experiences across these markets.

    Whether you are looking to diversify your portfolio or explore emerging opportunities, Daba stands as your trusted partner in navigating Africa’s vibrant investment landscape.

    Invest with Daba to leverage the potential of Africa’s leading stock markets and drive your financial growth. Download the app to get started today!

  • Daba présente des solutions technologiques pour les marchés financiers à GITEX AFRICA 2024

    Daba présente des solutions technologiques pour les marchés financiers à GITEX AFRICA 2024

    Daba offrira des avant-premières exclusives de leurs prochains lancements de produits lors de l’événement.

    Daba Finance, une startup qui permet d’investir facilement dans les meilleures entreprises privées et publiques d’Afrique, mettra en avant sa plateforme d’investissement de pointe, répondant aux besoins de levée de fonds des entreprises de toutes tailles et de tous secteurs en Afrique lors de GITEX AFRICA 2024, le plus grand et le plus influent événement technologique du continent.

    L’événement se tiendra à Marrakech, au Maroc, du 29 au 31 mai 2024, réunissant des milliers de professionnels, exposants, startups et plus de 100 délégations gouvernementales. Daba offrira des avant-premières exclusives de leurs prochains lancements de produits lors de l’événement. Ces lancements sont conçus pour démocratiser davantage l’investissement en Afrique et hors d’Afrique, s’adressant aux particuliers, entreprises, institutions et sociétés technologiques.

    De plus, Boum III Jr, PDG et co-fondateur de Daba, sera panéliste lors de la discussion intitulée “Travailler pour l’Afrique, Construire pour l’Afrique – Créer des entrepreneurs influents à l’échelle mondiale”, rejoint par Sadaharu Saiki, Mayssa Mrabet, Solomon Adjei, Zelalem Bogale et Francesco Gracolici. Cette conversation opportune explore le parcours transformationnel de l’Afrique alors qu’elle défie les attentes mondiales et adopte des solutions innovantes dans divers secteurs.

    En tant que premier fournisseur africain d’infrastructure d’investissement multi-actifs, la solution de Daba contribue à la transformation du continent en démocratisant l’accès et le mouvement du capital d’investissement à travers les marchés financiers africains.

    “GITEX Africa réunira des entreprises technologiques de premier plan, des entrepreneurs, des investisseurs et des décideurs de toute l’Afrique et du monde entier pour présenter les dernières innovations et explorer le vaste potentiel de l’économie numérique africaine”, a déclaré Boum. “En tant que plateforme d’investissement et de financement multi-actifs de premier plan pour les marchés africains, nous sommes ravis de participer à GITEX Africa 2024, qui offre une plateforme unique pour présenter nos capacités et interagir avec des professionnels technologiques partageant les mêmes idées de toute l’Afrique et au-delà.”

    Une plateforme unifiée pour investir en Afrique

    Daba a été lancé par Boum et le co-fondateur Anthony Miclet en septembre 2021 avec une mission simple : démocratiser l’investissement en Afrique en offrant un moyen sans barrière pour les investisseurs (de tous niveaux) d’accéder à des stratégies d’investissement sélectionnées et de construire leur patrimoine en investissant dans les marchés de capitaux privés et publics africains, via sa plateforme tout-en-un.

    La société a récemment été sélectionnée parmi 21 startups de pointe pour participer à la cohorte inaugurale du Visa Inclusive Fintech Accelerator, un programme lancé en janvier 2024 par le géant américain des paiements numériques Visa en collaboration avec Plug and Play, l’une des plus grandes plateformes mondiales d’innovation, accélérant ainsi notre mission de devenir la plateforme unifiée de référence pour l’investissement en Afrique.

    Daba offre un moyen sans barrières pour les investisseurs d’accéder à des stratégies d’investissement sélectionnées et de créer de la richesse en investissant dans les marchés de capitaux privés et publics africains.

    L’Afrique attire de plus en plus l’attention des investisseurs internationaux, et pour de bonnes raisons. Le continent abrite certaines des économies à la croissance la plus rapide au monde, et ses marchés boursiers ont récemment démontré des performances supérieures par rapport à d’autres marchés mondiaux, suggérant un potentiel de rendements attrayants.

    Alors que l’intérêt pour les opportunités d’investissement en Afrique continue de croître, la société se positionne comme la ressource principale pour les investisseurs cherchant à accéder aux opportunités d’investissement les plus prometteuses du continent.

    À propos de Daba Finance :

    Fondée en 2021, Daba Finance est la principale plateforme d’investissement et de financement multi-actifs en Afrique, dédiée à libérer tout le potentiel d’investissement du continent. Grâce à une plateforme unifiée, les particuliers et les institutions peuvent accéder à des opportunités d’investissement de haute qualité à travers les marchés africains, stimulant la croissance économique et favorisant le développement durable.

    En fournissant liquidité et exécution des transactions aux investisseurs de détail et institutionnels, Daba offre une gamme de fonctionnalités, notamment des informations fiables, la transparence et la facilité d’investir à travers le continent. La plateforme se consacre à combler le fossé entre le capital et les opportunités, permettant aux investisseurs d’accéder aux opportunités investissables de l’Afrique tout en aidant les entreprises africaines à accéder au capital dont elles ont besoin pour réussir.

  • Daba to Showcase Tech-Driven Capital Markets Solutions at GITEX AFRICA 2024

    Daba to Showcase Tech-Driven Capital Markets Solutions at GITEX AFRICA 2024

    Daba will be offering exclusive early previews of our forthcoming product launches at the event.

    Daba Finance, a startup that enables investing in Africa’s best private and public companies seamlessly, will highlight its state-of-the-art investment platform that caters to the capital-raising needs of businesses of all sizes and sectors in Africa at GITEX AFRICA 2024—the largest and most influential technology event on the continent.

    The event will be held in Marrakech, Morocco, from May 29 to May 31, 2024, bringing together thousands of professionals, exhibitors, startups, and more than 100 government delegations. Daba will be offering exclusive early previews of their forthcoming product launches at the event. These launches are designed to further democratize investing in and out of Africa, catering to individuals, businesses, institutions, and technology companies alike.

    In addition, Boum III Jr, CEO and Co-Founder of Daba, will be a panelist on the discussion titled “Working for Africa, Building for Africa – Creating Globally Influential Entrepreneurs”, joined by Sadaharu Saiki, Mayssa Mrabet, Solomon Adjei, Zelalem Bogale, and Francesco Gracolici. This timely conversation explores Africa’s transformational journey as it defies global expectations and embraces innovative solutions across various sectors.

    GITEX Africa is the largest and most influential technology event on the continent.

    As Africa’s first multi-asset investment infrastructure provider, Daba’s solution contributes to the continent’s transformation by democratizing access to and the movement of investment capital across the continent’s financial markets.

    “GITEX Africa will bring together leading technology companies, entrepreneurs, investors, and decision-makers from across Africa and the world to showcase the latest innovations and explore the vast potential of Africa’s digital economy,” said Boum. “As a premier multi-asset investment and financing platform for African markets, we are delighted to be a part of GITEX Africa 2024, which provides a unique platform to showcase our capabilities and interact with like-minded technology professionals from across Africa and beyond.”

    A Unified Platform For Investing in Africa

    Daba was launched by Boum and Co-Founder Anthony Miclet in September 2021 with a simple mission—to democratize investing in Africa by providing a barrier-free way for investors (of every level) to access curated investment strategies and build wealth by investing in the African private and public capital markets, through its all-in-one platform.

    The company was recently selected among 21 cutting-edge startups to participate in the inaugural cohort of the Visa Inclusive Fintech Accelerator, a program launched in January 2024 by U.S. digital payments giant Visa in collaboration with Plug and Play, one of the world’s largest global innovation platforms, further accelerating our mission to become the go-to unified platform for investing in Africa.

    Daba’s all-in-one app provides a barrier-free way for investors to access curated investment strategies and build wealth by investing in the African private and public capital markets.

    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.

    As interest in African investment opportunities continues to surge, the company is positioned as the premier resource for investors seeking to gain access to the continent’s most promising investment opportunities.

    About Daba Finance

    Established in 2021, Daba Finance is 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 access the capital they need to succeed.

  • 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.