Weekly Investor Update (May-WeekFour-2025)

Monday

Nigeria’s Inflation Slows to 23.7% in April as Core Pressures Ease

Nigeria’s headline inflation slowed to 23.71% in April 2025 from 24.23% in March, according to data from the National Bureau of Statistics. The moderation was driven by easing food and core inflation, alongside a decline in monthly inflation to 1.86%, down sharply from 3.90% in March.Food inflation fell to 21.26% year-on-year—significantly lower than the 40.53% recorded in April 2024—due to improved supply, softer demand, and statistical base effects. Core inflation, which excludes food and energy, also cooled to 23.39% from 26.84% in April 2024, with monthly core inflation slowing to 1.34%.Despite the moderation, analysts note that elevated energy, telecom, and import costs—fueled by past naira depreciation—remain key inflationary risks. As of May 15, 2025, the naira appreciated to ₦1,599.33/$1 in the official market, up 0.62% on the week. However, the currency weakened slightly in the parallel market, trading between ₦1,620 and ₦1,630/$1, reflecting ongoing dollar scarcity and access issues for smaller firms and individuals.

The latest inflation data and relative naira stability could influence the Central Bank of Nigeria’s decision at the May 19 Monetary Policy Committee meeting. After consecutive rate hikes to contain inflation and support the naira, some analysts expect the CBN to pause or adopt a measured tone. The MPC may hold rates to assess the inflation trend and maintain investor confidence. However, risks persist. Any renewed pressure on the naira or global commodity shocks could reverse the recent inflation slowdown. Overall, the April data suggests inflation is easing, but not decisively. Structural drivers—particularly import-related costs, FX liquidity, and energy prices—will continue to shape the near-term outlook.

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BRVM Breaks 300-Point Mark as Global Markets Rally on Growth Optimism

West Africa’s BRVM surged this week, with the BRVM Composite Index climbing 2.13% to 301.29—its first close above 300 since July 2016. Market cap reached a record 11.6T FCFA ($19.8B). Gains were led by Sitab (+43.44%), Setao (+18.1%), and Ecobank (+11.72%). Other BRVM indexes also jumped, driven by strength in financials and industrials.Across Africa, Nigeria’s NGX All-Share Index added 0.9%, with Northern Nigeria Flour Mills and Honeywell Flour Mill each gaining 10%. Kenya’s NSE rose 5.83%, supported by Africa Mega Agricorp (+9.8%) and Sanlam Kenya (+9.71%). South Africa’s JSE gained 0.82%, paced by Visual International (+50%) and Nu-World Holdings (+14.2%).Globally, U.S. markets posted strong weekly gains: the Nasdaq-100 surged 3.49%, the S&P 500 added 2.56%, and the Dow rose 0.95% amid tech strength and cooling inflation data. In Europe, the FTSE 100 climbed 1.52%, while the Euro Stoxx 50 rose just 0.16%. China’s SSE Composite inched up 0.43%, as momentum slowed late in the week.

Markets globally reflected optimism on easing inflation and resilient earnings, while Africa’s exchanges—particularly the BRVM and NSE—saw standout performances led by industrial and financial equities. The BRVM’s breakthrough above 300 points marks a psychological and structural milestone, affirming investor appetite in Francophone West Africa. Looking ahead, attention will shift to inflation prints, central bank rate guidance, and commodity movements. For African markets, continued momentum in banking and telecom sectors, paired with retail investor inflows, could sustain upward trajectories—especially on the BRVM and NGX. Traders will also watch U.S. Fed comments and China macro signals for global risk cues.

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South Africa’s AURA Raises $14.6M Series B to Expand Emergency Tech

South African emergency response platform AURA has secured €13.5 million ($14.6 million) in Series B funding to fuel its global expansion, targeting operations in 50 countries within two years. The round was co-led by the Cathay AfricInvest Innovation Fund (CAIF) and Partech, raising AURA’s total funding to €21 million ($22.8 million).AURA offers mobile-enabled emergency response by connecting users with the nearest vetted private security or medical responders through apps and panic buttons. The platform currently operates in South Africa, Kenya, the UK, and the U.S., and serves 1.2 million paying subscribers globally.AURA runs a B2B2C subscription model, integrating with partners such as Uber, Samsung, and FNB to enable white-labeled safety services. It allows security and ambulance providers to monetize idle capacity, supporting faster, verified responses.The U.S.—a $7 billion market—is now a priority expansion area. AURA aims to fill the service gap created as public law enforcement steps back from unverified alarms, leveraging partnerships to embed its tech into mobile devices and wearables.

AURA’s expansion comes as the global emergency response industry faces structural shifts, particularly in developed markets where law enforcement agencies are reducing responses to unverified alarms. This trend opens opportunities for private platforms to fill critical service gaps through real-time, tech-enabled networks. In emerging markets like South Africa, the need is even more acute. With over 46 million mobile users and growing crime concerns, AURA’s affordable subscription model (ZAR 40–50/month or ~$2.20–$2.70) targets a broad base previously excluded from premium security offerings. The company’s business model also enables security providers to monetize underused infrastructure, creating a two-sided marketplace that benefits both service providers and end-users. Statista projects South Africa’s alarm response revenue to hit $121.4 million by 2025. AURA is betting that replicating its model in the U.S. and other high-density markets, where mobile adoption and demand for safety are strong, can create a scalable, global network for emergency response—positioning it as a key infrastructure layer in the safety-tech space.

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Tuesday

Sylndr Gets $15.7M to Scale Used Car Platform into Full Ecosystem

Cairo-based auto tech startup Sylndr has raised $15.7 million in fresh equity funding as it expands beyond used car sales into auto financing, servicing, and dealer tools. The round was co-led by DPI’s Nclude Fund and Partech, bringing the company’s total capital raised to over $30 million since its 2021 launch.Founded by Omar El Defrawy, Sylndr began as a used car resale platform but now positions itself as a full-stack digital mobility player. The company also secured nearly $10 million in debt financing from local banks over the past year.Sylndr’s core business buys, refurbishes, and sells used cars with warranties. Its average sale value ranges between $20,000 and $25,000, with dollar-stable pricing despite Egypt’s steep currency depreciation. Egypt’s used car market—estimated at $10 billion—has boomed as new imports shrink under government restrictions and FX constraints. Revenue has grown 22x in local currency and 5x in USD terms since 2022, driven by product diversification and platform integration.

Sylndr’s expansion includes three new verticals: Sylndr Swift, a digital auto loan marketplace, Sylndr Plus, for inspections and servicing, and Al-Ajans, a dealer-to-consumer marketplace. Each runs as a standalone brand but is integrated through a single mobile app. The company works with over 1,000 dealers nationwide, and expects financing and servicing to generate 60% of gross profit within two years. This verticalization strategy is designed to reduce inventory risk and capture value across Egypt’s under-digitized car ecosystem. Amid limited access to affordable credit, Sylndr’s partnerships with banks provide instant pre-approvals for auto loans, without lending from its balance sheet. El Defrawy, a former investment banker, says the company now splits revenue evenly between B2C and B2B, and plans to stay focused on Egypt, where it claims to be the leading used car trading company by volume and value. Sylndr is targeting long-term dominance in a complex but high-growth market, where traditional players like OLX, Contactcars, and Autochek’s AutoTager still rely on fragmented listing models. With its inspection, refurbishment, and integrated financing network, Sylndr aims to become Egypt’s digital mobility backbone—formalizing a sector where trust, transparency, and access have long been scarce.

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Thndr Raises $15.7M to Expand Digital Investing Platform Across MENA

Cairo-based investment platform Thndr has secured $15.7 million in its latest funding round, led by Prosus Ventures with participation from Y Combinator, BECO Capital, JIMCO, Endeavor Catalyst, and Onsi Sawiris. The raise brings Thndr’s total funding to $37.76 million as it prepares for regional expansion into the UAE and Saudi Arabia.Founded in 2020 by Ahmad Hammouda and Seif Amr, Thndr offers a mobile-first platform for investing in local and international stocks, mutual funds, and savings products. The app charges low commissions and targets underserved populations across the MENA region.Thndr’s expansion strategy includes deepening operations in the UAE, where it holds a Category 3A license from the Abu Dhabi Global Market (ADGM), and launching in Saudi Arabia next. The new capital will fund product development, licensing, and regional market entry as Thndr aims to become MENA’s leading “investment-first money app.”

Thndr has rapidly scaled in Egypt, becoming the country’s top retail brokerage on the Egyptian Stock Exchange (EGX) in 2024 with $3.5 billion in total traded value, representing 11% of retail activity. The platform added 190,000 new investors, accounting for 82% of EGX’s new investor base. Its customer base is increasingly diversified—40% live outside major cities and female participation has grown from 3% to 12%. In the gold mutual fund space, Thndr now manages 47% of all AUM in Egypt. The firm’s expansion comes amid rising demand for user-friendly digital investment platforms in a region where less than 2% of individuals invest. Thndr’s model—offering a unified wallet for local, regional, and international assets—aims to simplify investing for first-time users. With strong regulatory backing in Egypt and the UAE, and growing VC confidence, Thndr is positioning itself as a regional leader in wealth-building for a new generation of investors. The company sees Saudi Arabia, with its youthful population and growing retail investor base, as a key growth frontier.

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MaxAB-Wasoko Acquires EFG’s Fatura in B2B Commerce, Fintech Expansion

EFG Finance, a subsidiary of EFG Holding, has approved the acquisition of its B2B e-commerce platform Fatura by MaxAB-Wasoko, a regional supply chain and fintech super app. The deal makes EFG a significant shareholder in MaxAB-Wasoko and grants it a seat on the company’s board, reinforcing its fintech footprint across Africa.Founded in 2019, Fatura operates an asset-light marketplace model with 626 wholesalers in 16 cities across Egypt. Its integration expands MaxAB’s reach into five new cities and is expected to contribute 25% of MaxAB Egypt’s revenue by year-end.The acquisition follows MaxAB’s merger with Wasoko and continues its strategy of consolidating Africa’s B2B commerce sector. Fatura strengthens MaxAB’s product depth, distribution coverage, and embedded fintech capabilities—especially credit access for retailers.

MaxAB-Wasoko’s acquisition of Fatura underscores the growing momentum behind integrated retail-fintech platforms in Africa. The combined entity now operates across Egypt, Morocco, Kenya, Rwanda, and Tanzania, and finances over 9% of e-commerce sales in Egypt and Morocco through its embedded credit solutions. Fatura’s asset-light model complements MaxAB’s end-to-end supply chain infrastructure—from procurement to last-mile delivery—bringing more suppliers onto the platform and enhancing efficiency for small and mid-sized retailers. EFG Finance’s strategic stake signals confidence in MaxAB-Wasoko’s long-term potential to lead the B2B and fintech markets across the continent. With EFG Holding’s support and MaxAB-Wasoko’s reach, the new structure aims to offer retailers broader product access, faster credit, and digital tools that support inventory growth and operational resilience. This move positions MaxAB-Wasoko as one of the few tech players offering a unified commerce and financing solution at scale, poised to shape the future of African retail.

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Wednesday

Nigeria Holds Key Lending Rate at 27.5% Amid Inflation, FX Uncertainty

Nigeria’s central bank left its benchmark interest rate unchanged at 27.50% for the second consecutive meeting, as policymakers balance inflation control with economic recovery and investor sentiment.The Monetary Policy Committee (MPC), led by Central Bank Governor Olayemi Cardoso, voted unanimously to hold rates steady, citing moderate gains in macroeconomic indicators such as exchange rate stability and slowing fuel price increases.Food inflation is showing signs of monthly easing, and the naira has strengthened in recent weeks, driven by improved foreign exchange inflows and renewed investor confidence. Headline inflation was 23.71% in April.Cardoso said the decision reflects cautious optimism. “Members noted the progressive moderation in food inflation and commended efforts to increase food supply and reduce insecurity in farming communities.”Analysts expected the hold. Some warned that further tightening could hurt business activity, while premature easing risked worsening inflation. The central bank has aggressively raised rates this year. The July 21–22 MPC meeting will indicate whether policymakers continue the pause or pivot as inflation trends evolve.

Nigeria’s monetary authorities are pausing rate hikes to evaluate their impact, but inflation pressures remain. Structural issues like elevated energy prices, FX demand, and weak export earnings continue to weigh on inflation expectations. Analysts say the CBN’s cautious stance is designed to keep foreign portfolio inflows steady by preserving interest rate differentials and currency stability. With oil prices declining, FX inflows from crude exports could soften, increasing reliance on investor sentiment to support the naira. The central bank’s position also underscores a return to conventional policy tools, moving away from past ad hoc interventions. While the pause allows time to assess policy effectiveness, future decisions will depend on inflation data and external risks, including global trade frictions. The next MPC outcome may hinge on whether current gains in currency and price levels hold, or whether underlying cost pressures force a return to rate hikes.

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Jumia Opens Logistics Network to Third-Party Sellers to Boost Revenue

E-commerce platform Jumia is now offering its logistics network to third-party businesses, including informal social media merchants, marking a shift from competition to collaboration as it pursues profitability by 2027.The new service, Jumia Delivery, allows external sellers to ship parcels through Jumia’s logistics infrastructure, including 494 pickup stations across Nigeria. The rollout follows a pilot in Côte d’Ivoire and will soon expand to Kenya, Ghana, and Senegal, subject to regulatory approvals.“This pool of merchants is an opportunity,” CEO Francis Dufay said during Jumia’s May 8 earnings call. “We’re working to onboard them to our marketplace and generate profit from delivery services.”Jumia is now competing directly with logistics firms like GIG, Sendbox, Uber, and Bolt. By monetising its delivery network, Jumia aims to drive scale and reduce last-mile costs, which totaled $9.4 million in Q1 2025. The company has already lowered costs through staff cuts, contract renegotiations, and operational efficiencies.

Jumia’s pivot to logistics services reflects a broader trend: tech platforms repurposing internal infrastructure to serve informal and social commerce sellers. By leveraging its logistics backbone, Jumia aims to extract value beyond e-commerce orders and optimise underutilised assets like delivery routes and warehouses. Nigeria’s social commerce market is large and fragmented, dominated by independent traders using WhatsApp and Instagram. These sellers often rely on informal delivery riders or third-party logistics firms. By offering a branded, nationwide delivery solution, Jumia hopes to win over this segment with reliability and reach. But the competition is strong. From GIG and DHL to Uber Eats and independent couriers, delivery options are abundant and often cheaper. Jumia’s challenge will be pricing and onboarding in a way that offers clear value while maintaining unit economics. If successful, the strategy could drive volume, improve margins, and turn logistics into a standalone revenue stream—something Jumia needs as it pushes for long-term profitability in a capital-constrained environment.

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Investor Funding for African E-Commerce Startups Drops 47% in Q1 2025

Investor funding in African e-commerce startups fell sharply in the first quarter of 2025, dropping 47.2% year-on-year to $11.3 million, according to data fromAfrica: The Big Deal. The sector raised $21.4 million during the same period in 2024.The decline reflects tightening private markets and growing investor caution amid concerns about competition, weak unit economics, and slowing growth. No seed rounds were recorded during the quarter, compared to $3 million raised in Q1 2024 by startups like Badili and Dawa Mkononi.Despite the slowdown, a few notable deals were closed. Egypt-based Taager raised $6.8 million in a Pre-Series B round led by Breyer Capital, while Kenya’s Kapu secured $2 million in Pre-Series A funding from Base Capital.E-commerce startups face headwinds including rising customer acquisition costs and dominance by established players like Jumia, Zando, and Konga. These challenges appear to have shifted investor interest toward sectors offering faster paths to profitability.

The drop in e-commerce funding suggests a rebalancing of capital toward sectors with more predictable returns. While Africa’s e-commerce market was valued at $317 billion in 2024 and is projected to exceed $1 trillion by 2033, the path to profitability remains uncertain for early-stage players. Investors are increasingly favouring business models with stronger unit economics and lower burn rates. Rising competition, logistics inefficiencies, and customer churn make scaling difficult for smaller platforms. As a result, investor attention may shift toward fintech, SaaS, and climate tech sectors perceived as more resilient to macro pressures. However, the long-term fundamentals for e-commerce remain strong, driven by rising internet access, mobile payments, and a growing digital consumer base. The funding dip may represent a temporary correction rather than a permanent retreat, with larger, more proven e-commerce players likely to dominate funding flows in the near term.

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Thursday

Africa, Asia-Focused Fund Raises $325M for Infrastructure Investments

The Emerging Africa & Asia Infrastructure Fund (EAAIF), managed by Ninety One, has secured $325 million in new debt facilities, bringing its recent capital commitments to $620 million, surpassing its $500 million fundraising target ahead of schedule.The latest round was led by Allianz Global Investors with a €100 million commitment on behalf of parent Allianz Group. Other participants include ABSA ($75 million), Standard Bank ($50 million), Sumitomo Mitsui Banking Corporation ($50 million credit facility), and Sweden’s Swedfund (€40 million). This follows a $294 million raise by the fund earlier in 2024.EAAIF, a Private Infrastructure Development Group (PIDG) company, plans to deploy this funding toward $1 billion worth of infrastructure investments across Africa and Asia by 2028, targeting digital infrastructure, energy transition, and critical utilities. Since launching in 2001, EAAIF has committed over $3 billion to 125+ projects.

The oversubscription of EAAIF’s debt raise reflects growing global investor appetite for private infrastructure debt in emerging markets. With traditional development finance institutions stretched, funds like EAAIF are filling critical financing gaps across Africa and Asia. Backed by insurance capital, banks, and DFIs, the fund is positioned to scale investments in digital connectivity, energy transition, and climate-resilient infrastructure. Investor participation from Allianz, SMBC, ABSA, and Swedfund also highlights a shift toward sustainable and blended finance models that balance risk with impact. EAAIF’s strategy aligns with broader goals to reduce risk perception around African infrastructure and mobilise private capital. As PIDG aims to unlock $25 billion in infrastructure finance by 2030, EAAIF’s capital base and track record suggest it could become a cornerstone vehicle for private debt-led development.

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Africa Global Logistics Cuts Losses by 54% in Q1 on Higher Revenue

Africa Global Logistics Cote d’Ivoire (BRVM: SDSC), a major West African logistics firm, narrowed its first-quarter net loss by 54% as revenue rose and the company improved cost controls. Net losses shrank to 193.2 million CFA francs ($328,000) from 416.4 million CFA francs ($707,000) in Q1 2024. Revenue climbed 6.2% to 23.1 billion CFA francs ($39.2 million) from 21.7 billion CFA francs ($36.9 million).Operating results improved 15% to a loss of 144.4 million CFA francs ($245,000) from 169.3 million CFA francs ($287,000). The company attributed the turnaround to higher revenue and better charge management. Logistics activities linked to commodities, including maritime transport, warehousing and transit delivery showed progress. The company handled 154,000 tons of imports in Q1 2025, up 5% from 87,000 tons in the same period last year.Maritime activities performed well due to conventional maintenance tied to cocoa, wheat and sugar shipments. Good container management and volume levels helped offset declines in container delivery activities caused by slower port operations and road work.

Africa Global Logistics operates across West Africa’s critical trade corridors, handling imports and exports for landlocked countries, including Mali and Burkina Faso, through Ivory Coast’s ports. The company benefits from Ivory Coast’s position as the world’s largest cocoa producer and a major agricultural exporter. Port of Abidjan handles over 23 million tons of cargo annually, making it one of West Africa’s busiest facilities. Regional infrastructure challenges, including road conditions and border delays, affect logistics costs. However, government investments in port modernization and transport corridors create growth opportunities. Competition from international logistics providers has intensified as trade volumes grow. Local firms like AGL must leverage regional knowledge and relationships while investing in technology and equipment to remain competitive in the expanding West African market.

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Togo-Based Ecobank Group Raises $125M in Oversubscribed Bond Issuance

Ecobank Transnational Incorporated (BRVM: ETIT) has raised $125 million through a senior unsecured bond issuance, complementing a $400 million bond raised in 2024. The total $525 million in bonds will mature on October 15, 2029. The new issuance was priced at 102.634%, offering an effective yield of 9.375%.Investor demand was strong, with the order book more than double the offering size. Buyers included asset managers and development finance institutions across Africa, Europe, the U.S., the Middle East, and Asia, highlighting continued investor confidence in Ecobank, which operates in 35 African countries.Proceeds will be used to refinance debt and improve liquidity. The transaction was arranged by Absa, Africa Finance Corporation, Afreximbank, Mashreq, and Standard Chartered, with Renaissance Capital advising. However, Ecobank faces pressure from its Nigerian subsidiary, which is non-compliant with capital adequacy ratios and has requested a moratorium on a $300 million bond due in 2026.

Despite the successful bond raise, ETI’s outlook is clouded by its Nigerian unit’s financial troubles. Moody’s flagged that failure to recapitalize the subsidiary or meet the 8% capital adequacy threshold could weaken group liquidity and trigger a downgrade. A $300 million bond at risk of default in 2026 adds urgency. If Ecobank Nigeria fails to restructure or meet regulatory ratios, it could drain group resources and damage investor confidence. The group’s dual leverage and limited dividend upstreaming from subsidiaries are also constraints. ETI’s efforts to tap international markets underscore its need to buffer against potential shocks from Nigeria and maintain credit ratings.

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