Weekly Investor Update (April-WeekFour-2025)

9 min Read April 25, 2025 at 5:00 PM UTC

Wednesday

Unilever Share Price Hits 6-Year High Amid BRVM Stock Market Rebound

The BRVM stock market rebounded sharply, led by a 6.01% gain inOrange, which closed at 14,900 FCFA. The stock added 127.3 billion FCFA in market capitalization, helping lift all major indices. The BRVM-Composite rose 1.57% to 285.94 points, the BRVM-30 climbed 1.73% to 143.74 points, and the BRVM-Prestige advanced 1.51% to 121.33 points.Unileverjumped 7.48% to 9,560 FCFA, reaching its highest level since 2018.Palmrose 7.05% to 6,150 FCFA, boosted by Q1 2025 results.Air Liquidegained 6.45% to 495 FCFA. In contrast,Tractafric Motorsfell 5.96% to 1,815 FCFA.Servair AbidjanandTotaldropped 3.65% and 2.78% respectively.Trading volume surged to 1.8 billion FCFA—nearly five times higher than Friday’s activity. Bank of Africa Senegal and Sonatel accounted for over 70% of trades, underscoring their role in market liquidity.

The BRVM, serving eight West African nations, remains one of the few regional exchanges in the world. Despite global macro pressures, the BRVM has shown consistent resilience, supported by the CFA franc’s peg to the euro, which insulates it from currency volatility. Rising interest from both local and diaspora investors is driving liquidity. Stocks like Orange and Sonatel are seen as defensive plays, offering both dividend yields and exposure to regional telecom growth. Meanwhile, Unilever’s rise reflects growing confidence in consumer staples amid inflation concerns. Recent reforms in market infrastructure, including digital trading and improved reporting standards, are increasing transparency and accessibility for retail investors. The spike in trading volumes this session aligns with this growing participation. If current trends continue, the BRVM is poised to attract more cross-border capital and reinforce its position as a leading financial hub in Francophone Africa.

Gold Prices Rise as Investors Bet on Bullion Amid Trade Volatility

Institutional investors are reallocating capital as global recession fears rise, driven by concerns over former U.S. President Donald Trump’s evolving trade policy. Bank of America’s April 2025 Fund Manager Survey found that 82% of global fund managers expect weaker economic growth this year — the highest pessimism in over three decades.Gold emerged as the top asset class, with 42% of respondents naming it the best-performing asset in 2025, up from 23% in March. It has returned 25% so far this year. The SPDR Gold Shares ETF (GLD) surpassed $100 billion in AUM, and gold prices recently breached $3,300/oz. Expectations of U.S. dollar depreciation are also driving gold demand, with a net 61% of managers predicting a weaker dollar, the highest since 2006.Managers have reduced equity exposure, becoming the most underweight in global stocks since July 2023. The once-favored tech sector saw allocations fall to their lowest since November 2022, while investors increased holdings in cash (now at 4.8%), fixed income, utilities, healthcare, and staples. Funds like FLCO, VHT, IDU, and FTSA are seeing inflows as managers rotate into more defensive positions.

The latest asset allocation shift highlights how institutional investors are preparing for prolonged volatility. Beyond gold, there’s growing momentum toward cash, which now yields over 4%, making it an attractive defensive play. The cash level, at 4.8%, approaches the 5% contrarian signal BofA uses to suggest equity buying opportunities amid extreme pessimism. The move into staples, healthcare, and utilities reflects a classic risk-off rotation. Funds like Vanguard’s VHT and iShares’ IDU offer exposure to these sectors. Meanwhile, tech exposure has dropped significantly, with fund managers net 17% underweight. For context, this marks the sharpest tech pullback since late 2022. The fixed-income rebound is also gaining strength. As interest rates peak or potentially decline, institutional flows into investment-grade corporate bonds and sovereign debt continue, as evidenced by inflows to ETFs like FLCO. With gold now viewed as the most crowded trade, overtaking even the “Magnificent Seven,” the institutional consensus is clear: safety, not growth, is the top priority.

Africa to Lead Global GDP Expansion in 2025 Despite Macro Headwinds

Africa is expected to dominate the global growth leaderboard in 2025, with 13 of the top 20 fastest-growing economies located on the continent, driven by infrastructure investments, demographic momentum, and improved governance support, according to latest IMF projections.Senegal (8.4%), Rwanda (7.1%), and Guinea (7.0%) lead Africa’s growth surge. Ethiopia (6.6%), Niger (6.5%), Benin (6.5%), Côte d’Ivoire (6.3%), and Zambia (6.2%) are also projected to outperform the global average of 2.8%.With a volatile post-conflict rebound, Libya is projected to grow by 17.3%. Other strong performers include Uganda (6.1%), Zimbabwe, Tanzania, and Djibouti, all expected to expand 6.0%. Outside Africa, Guyana tops the global ranking with a 2025 growth rate of 10.3%, followed by oil resource-driven Asian economies including India (6.1%) and Mongolia (6.0%).

Despite the growth figures, the IMF cautions that high growth rates in many African countries are starting from low economic bases. Public investment, commodity exports, and demographic expansion are key drivers, but inflation, debt, and climate risks persist. Many of these economies—like Niger and Guinea—depend heavily on extractives or agriculture, sectors vulnerable to global price swings and environmental shocks. Infrastructure and governance gaps remain. Still, the concentration of high performers in Africa points to shifting growth dynamics. Stronger regional integration, financial inclusion, and digital transformation could sustain momentum. To turn growth into sustainable development, the IMF stresses the importance of macroeconomic stability, local industrialization, and job creation. Countries like Senegal and Rwanda are increasingly seen as reform models, attracting investor interest. With global growth slowing, Africa’s performance offers both opportunity and urgency for policy coordination, investment, and multilateral support.

South Africa Faces $4B Revenue Gap After Reversing Planned VAT Hike

South Africa’s government has dropped plans to raise the value-added tax (VAT) following internal coalition tensions, the finance ministry said on Thursday. The proposed 1-percentage-point increase over two years was intended to help close a 75 billion rand ($4.02 billion) revenue shortfall.The African National Congress (ANC), which supported the VAT hike, clashed with coalition partner Democratic Alliance (DA), which argued it would increase pressure on low-income households. The finance ministry confirmed VAT will remain at 15%.Finance Minister Enoch Godongwana will now present revised spending plans via updated Appropriation and Division of Revenue Bills. Parliament is expected to adjust expenditure to offset the shortfall without compromising fiscal sustainability. Political uncertainty and mixed signals on tax policy risk undermining investor confidence, analysts said. The DA had opposed the budget’s fiscal framework and challenged the tax proposal in court.

South Africa’s decision to reverse a planned VAT hike underscores growing instability within its coalition government and highlights the political sensitivity of fiscal policy in an election year. While the ANC viewed the VAT hike as a necessary step amid weak growth and limited revenue alternatives, the DA positioned itself as a defender of household affordability. The disagreement reflects deeper tensions over spending priorities, governance, and economic reform. The move also complicates efforts to reduce the budget deficit without cutting essential social and infrastructure programs. The National Treasury now faces the challenge of reallocating spending while preserving fiscal credibility. Analysts warn that inconsistent policy signals could affect South Africa’s borrowing costs and investor outlook. With public debt projected to remain above 70% of GDP and interest costs consuming over 20% of revenue, balancing fiscal responsibility with political consensus will remain a central challenge for the coalition government.

S&P Upgrades Togo’s Sovereign Rating to B+ on Growth, Fiscal Reform

S&P Global Ratings has upgraded Togo’s long-term local and foreign currency sovereign credit ratings to B+ from B, with a stable outlook. The agency expects Togo’s GDP to grow by an average of 6% annually from 2025 to 2028, supported by fiscal reforms, investment in infrastructure, and ongoing international support.S&P cited Togo’s improved external debt position, driven by concessional financing from multilateral partners and declining reliance on high-cost regional market borrowing. The agency noted that Togo’s cost of debt remains among the lowest in its peer group, at 2.6% of GDP.The government is targeting a fiscal deficit of 3% of GDP by 2027. Debt-to-GDP is projected to fall below 60% by 2028. However, challenges remain, including low GDP per capita and security risks in northern regions. The outlook is stable, reflecting expectations of continued economic growth, fiscal discipline, and gradual diversification of the economy.

Togo’s upgrade reflects confidence in its economic direction, underpinned by pro-business reforms, improved tax collection, and investment in manufacturing and logistics. Major projects include port and airport expansion and the development of the Adétikopé industrial platform. With inflation projected to stay below 3% and foreign aid supporting macroeconomic stability, Togo has shown resilience amid global shocks. The IMF and World Bank remain key partners, providing budget support and concessional loans. Yet structural weaknesses persist. GDP per capita is projected to remain under $1,400 through 2028, and the informal economy limits revenue mobilization. Security threats in northern regions may also drive up defense spending, complicating fiscal targets. Continued access to concessional financing, steady reforms, and regional integration under WAEMU will be essential for Togo to sustain momentum. S&P’s upgrade provides a signal to investors, but lasting gains will depend on how reforms translate into inclusive, broad-based growth.

Google Opens Applications for 2025 African AI Startup Accelerator

Google for Startups Accelerator Africa is now accepting applications for its first 2025 cohort, targeting Seed to Series A startups across the continent that are leveraging artificial intelligence (AI) to solve systemic challenges. The three-month hybrid program offers equity-free support, technical training, strategic mentorship, and up to $350,000 in Google Cloud credits.Startups must be headquartered in Africa, have at least one African founder, and offer a live product with demonstrated product-market fit. Eligible companies should have an AI-first approach or integrate AI meaningfully into their business model.Since launching in 2018, the accelerator has supported over 140 startups from 17 countries, including Nigeria’s Crop2Cash, an agritech firm enabling smallholder farmers to access digital identities, payments, and credit. Participating startups have collectively raised more than $300 million and created over 3,000 jobs.Applications for the 2025 program are now open.

AI startups across Africa are addressing long-standing issues in sectors such as agriculture, education, health, and financial services. These tech-driven approaches offer scalable solutions to systemic challenges, including limited financial access, low data visibility, and inefficiencies in public infrastructure. Startups like Crop2Cash are digitizing value chains and improving traceability, helping to formalize informal economies. Google’s accelerator supports these ventures not only with funding but with mentorship, cloud infrastructure, and access to global networks. As global capital tightens, access to non-dilutive resources like Google’s accelerator becomes increasingly critical for early-stage African startups. With many founders building in resource-constrained environments, support programs that combine technical depth with strategic support are vital to unlocking long-term impact. The program also serves as a bridge between Africa’s fast-growing innovation ecosystem and global tech infrastructure, creating opportunities for AI deployment in ways that directly impact local economies.

This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Articles do not reflect the views of DABA ADVISORS LLC and do not provide investment advice to Daba’s clients. Daba is not engaged in rendering tax, legal or accounting advice. Please consult a qualified professional for this type of service.