Weekly Investor Update (May-WeekThree-2025)

17 min Read May 16, 2025 at 5:00 PM UTC

Monday

Egypt’s Nawy Raises $75M Series A to Scale Proptech Platform

Cairo-based proptech startup Nawy has raised $75 million in Series A funding—$52 million in equity and $23 million in debt—to expand its real estate platform across North Africa and the Middle East. The round was led by Partech Africa and includes participation from e& Capital, Nclude Fund, Endeavor Catalyst, and other regional and global investors.Founded in 2019 by Mostafa El Beltagy and four co-founders, Nawy digitizes the process of buying, selling, and financing real estate in Egypt, combining a listings platform with in-house brokerage and financial services. The startup has recorded over $1.4 billion in GMV in 2024, up from $38 million in 2020.The platform’s growth has come despite Egypt’s economic headwinds, including a 69% devaluation of the pound, as demand from the diaspora and interest in real estate as an inflation hedge continue to drive activity. The Series A round, one of the largest for an African startup, will support expansion and the integration of AI across its platform.

Nawy launched to solve Egypt’s opaque and fragmented property market by offering buyers a transparent digital platform. Over time, it added services for developers, brokers, and investors, creating a full-stack ecosystem. Products likeNawy Shares—a fractional ownership option starting at $500—andMove Now Pay Later, its embedded real estate financing solution, have helped the startup reach middle-income Egyptians, a segment historically underserved by traditional mortgage products. These offerings are backed by a $23 million debt facility from Egypt’s top banks. With over 3,000 brokerages onboard and a million monthly site visitors, Nawy now plans to enter Morocco, Saudi Arabia, and the UAE, where regional players like Huspy and Property Finder dominate. The company is also exploring M&A opportunities, having recently acquired property management startup ROA (rebranded asNawy Unlocked).

Francophone Africa DeepTech Startups to Get Backing From New $69M Fund

A $69 million (CFA 40 billion) innovation fund has been launched to support DeepTech ventures across Francophone Africa. Announced in Yaoundé, Cameroon, the initiative is backed by the African Intellectual Property Organization (OAPI) and the African Guarantee Fund (AGF), with a goal to finance 1,000 innovation-driven projects over the next five years across OAPI’s 17 member countries.The fund will provide financial and technical support to startups and SMEs in sectors such as artificial intelligence, biotechnology, clean energy, and advanced manufacturing. AGF will offer credit guarantees to improve access to bank financing, while startups will receive mentorship and commercialization assistance tailored to patented innovations.OAPI is investing CFA 5 billion ($8.6 million) in AGF, becoming its second African shareholder after the African Development Bank (AfDB). The fund’s broader capital pool includes support from international partners in Denmark, France, Germany, and the U.S.

The new DeepTech fund signals a shift in Africa’s approach to commercializing advanced research and intellectual property. While many African countries produce scientific research, converting it into scalable products remains a challenge, especially in Francophone states where venture funding is scarce. According to the 2024 Global Innovation Index, top performers like South Africa and Mauritius lead the continent in innovation output and patent filings. However, most Francophone African countries lag due to weak financing mechanisms and fragmented ecosystems. By offering guaranteed loans, mentorship, and industrial linkages, the OAPI-AGF initiative aims to address these bottlenecks. Its structure emphasizes risk-sharing and long-term support, especially for IP-backed projects. The first call for applications is expected in Q3 2025, targeting 200 projects in its inaugural year.

Weekly Markets Pulse: Africa Outperforms as Trade Talks Rattle Markets

Global markets showed mixed performance in the week, with African exchanges mostly positiveU.S. indices volatile amid trade tensions, and Asian and European bourses edging higherInvestors digested economic data, earnings, and geopolitical developments, shaping divergent trends

Investor sentiment was divided across regions as trade tensions, policy signals, and earnings shaped global market dynamics. In the U.S., equities ended the week slightly lower, with the S&P 500 down 0.5%, the Nasdaq dipping 0.3%, and the Dow losing 0.2%. Volatility was driven by anticipation around high-stakes U.S.-China trade talks, with President Trump suggesting a potential 80% tariff on Chinese imports. While markets hoped for de-escalation, clarity remained elusive, keeping traders cautious. Meanwhile, African markets like the BRVM and NGX delivered robust returns, reflecting strong corporate results and investor appetite for undervalued stocks. BRVM’s indices led the continent with a 1.9% gain, while Nigeria’s NGX posted a modest weekly drop despite strong individual stock performance. European indices such as the Euro Stoxx 50 and FTSE 100 climbed steadily, while China’s SSE Composite rallied 1.76%, outperforming major peers. Overall, global markets hovered in a holding pattern, balancing optimism with geopolitical and policy uncertainty.

Airtel Africa Confirms 2026 IPO Plan for Mobile Money Unit

Airtel Africa plans to list its mobile money unit, Airtel Money, in the first half of 2026, as the telecom operator aims to unlock value and accelerate growth in Africa’s expanding digital payments market. The IPO will give Airtel Money operational independence and capital to compete with regional fintech giants like Safaricom’s M-Pesa and MTN’s MoMo, which dominate mobile financial services across East, West, and Central Africa.Operating in 14 African countries, Airtel Africa said the public listing would enhance visibility and scale for Airtel Money. While the company did not specify the exchange or fundraising target, it reaffirmed its IPO intention, first floated in 2024 with an initial July 2025 target.Airtel Money’s revenues grew 20.7% in 2024, processing $112 billion in transactions. With over 30 million active users, the platform is focused on expanding in underpenetrated markets like Nigeria, Uganda, Tanzania, and the DRC.

The planned IPO signals Airtel’s ambition to transform Airtel Money into a standalone fintech contender. Despite strong growth, Airtel Money still trails M-Pesa and MoMo, which boast 66.2 million and 65 million users respectively and process hundreds of billions in annual transaction value. Listing Airtel Money separately could position the unit to attract fintech-focused investors, strike new partnerships, and deepen financial inclusion efforts across its markets. It also reflects a wider trend of telecoms unbundling financial services arms to capture fintech valuation multiples. With rising investor interest in Africa’s digital economy and mobile money adoption continuing to expand, especially among unbanked populations, Airtel Money’s IPO may serve as a bellwether for investor appetite in the next wave of African fintech infrastructure plays.

Safaricom Returns to Profit Growth as Ethiopia Losses Narrow

Safaricom grew its full-year profit by 11% to $540 million (KES 69.8 billion) in 2024, marking a return to growth after two years of earnings pressure tied to its expansion into Ethiopia. The recovery was driven by easing losses in Ethiopia and continued growth in mobile data and M-Pesa revenue in Kenya.Service revenue rose 10% to $2.8 billion (KES 371.4 billion) in the year to March, with total customer numbers rising 16% to 57.1 million. The Kenyan unit remained the group’s primary profit driver, while Ethiopia contributed 9% of service revenue, up from near-zero a year ago.Losses from Ethiopia fell sharply to $165.7 million (KES 21.4 billion) as subscriber numbers increased and Safaricom scaled its M-Pesa operations, launched in the market in August 2023. CFO Dilip Pal noted Ethiopia is “making more confident steps,” with improving unit economics.

Safaricom’s aggressive entry into Ethiopia—Africa’s second-most populous country—has weighed on earnings since 2022, with infrastructure investments and regulatory hurdles delaying profitability. But FY2024 results show early signs of a turnaround. The company expects to further reduce Ethiopia losses to between $178.1 million and $201.3 million in FY2025, down from the prior year’s $472.4 million (KES 61 billion). Earnings before interest and taxes (EBIT) are projected to rise 50% to $1.16 billion (KES 150 billion) by March 2026. Safaricom’s strategy is now focused on consolidating growth in Kenya, where M-Pesa remains central, while deepening its foothold in Ethiopia through mobile money and expanded infrastructure. Despite headwinds from foreign exchange pressures and economic volatility, the telco’s diversified model appears to be regaining momentum across both markets.

European DFIs Back $250M African Private Credit Fund

BluePeak Private Capital aims to raise $250 million for its Africa-focused private credit fund, with $80 million already secured in a first close backed by European development finance institutions. Investors include British International Investment (BII), FMO, Swedfund, and the Swiss Investment Fund for Emerging Markets.The fund targets mid-sized African companies typically underserved by banks, offering non-dilutive growth capital through private debt. Initial investments will range from $10 million to $20 million, focusing on defensive sectors like agribusiness, manufacturing, and healthcare.“We are seeing more interest in the market,” said Jo Fry, investment director at BII. “Private credit funds are filling a gap for mid-market firms seeking flexible growth capital.” BluePeak’s co-founder, Walid Cherif said the fund expects to announce its first deal within a month. With global aid shifting inward, especially from the U.S., which is pulling back $555 million from the African Development Bank, development finance institutions see private credit as a vital financing tool for African growth.

As African banks face growing constraints, private credit is becoming a crucial source of capital for mid-sized businesses. According to the International Finance Corporation, African firms face a funding gap of $330 billion annually, with most of that concentrated in the SME and mid-market segment. Private credit provides a viable alternative to equity, enabling businesses to scale without diluting ownership. Globally, private credit has grown into a $1.6 trillion asset class, with major firms like KKR and Blackstone expanding their footprint. In Africa, interest is accelerating as fund managers target stable, cash-generating industries and prioritize downside protection. BluePeak’s strategy reflects broader trends—replacing retreating donor support with sustainable private capital, while anchoring investments in essential sectors. The firm’s fund is one of several signaling a maturing African private debt market that could reshape financing for growing companies on the continent.

EIB, Family Bank to Mobilize $110M for SME Financing in Kenya

The European Investment Bank’s development arm, EIB Global, has partnered with Kenya’s Family Bank to mobilise €100 million (US$110 million) in financing for small and medium-sized businesses. The facility aims to expand access to credit for women-led enterprises and youth entrepreneurs in Kenya.Under the agreement, EIB Global is providing a €50 million credit line, which Family Bank will match. The financing, announced at the EU-Kenya Business Forum in Nairobi, will primarily support SMEs and mid-cap firms in the agriculture and trade sectors.At least half of the funds will be allocated to businesses owned or managed by women, while a minimum of 30% will support ventures led by young entrepreneurs. The partnership aligns with the bank’s 2025–2029 strategy to scale SME lending and deepen engagement across value chains. EIB Global will also offer technical assistance to strengthen Family Bank’s gender strategy and explore a 2X Challenge certification to further promote women’s economic empowerment.

Access to finance remains a major hurdle for Kenyan SMEs, particularly those led by women and young people. According to the World Bank, only 30% of women-owned businesses in Sub-Saharan Africa have access to formal credit. Youth unemployment, meanwhile, continues to exceed 35% in Kenya, with limited capital access cited as a key barrier to entrepreneurship. The EIB-Family Bank initiative aims to close this financing gap through both funding and technical support. By tying at least 80% of the credit line to women and youth-led businesses, the program targets the segments most excluded from traditional finance. The partnership also aligns with the 2X Challenge, a global initiative launched in 2018 to mobilize capital for projects that empower women as business owners, leaders, employees, and consumers. Certification under the 2X standard would enhance the program’s impact tracking and eligibility for future gender-focused investment.

Sitab First-Quarter Net Income Rises 146% Despite Volume Decline

Ivory Coast’s tobacco manufacturer Société Ivoirienne des Tabacs SA (BRVM: STBC) posted net income of 9.41 billion CFA francs ($16 million) in Q1 2025, up 146% from 3.82 billion CFA francs in Q1 2024.Revenue increased 35% to 61.42 billion CFA francs ($104.3 million) despite a 7% decline in sales volume to 1.71 million cigarette units. The company attributed volume drops to price increases on FINE DUO and FINE KS cigarettes implemented in January 2025. Operating profit surged 134% to 12.35 billion CFA francs ($21 million) from 5.27 billion CFA francs in the same period last year.The price increases followed regulatory changes, including a minimum price requirement introduced in November 2024 and significant excise tax hikes on tobacco products. The company expects to maintain strong performance through 2025 while preserving current sales trends.

The Q1 performance demonstrates how tobacco companies can maintain profitability despite volume challenges through strategic pricing. The company successfully navigated regulatory headwinds by optimizing operational costs while implementing necessary price increases. Imperial Brands-owned SITAB operates in West Africa where tobacco consumption patterns differ from developed markets. While sales volumes declined 7%, the company’s ability to increase prices by approximately 45% (based on revenue growth versus volume decline) shows strong pricing power in the Ivorian market. Industry analysts note that tobacco companies in emerging markets typically face growing regulatory pressure as governments adopt stricter controls. SITAB’s adaptation to Ivory Coast’s new minimum pricing and excise tax increases suggests preparedness for potential future regulatory changes while continuing to deliver shareholder value.

Burkina Faso Telco Onatel Q1 Revenue Jumps 4%

Onatel (BRVM: ONTBF), Burkina Faso’s main telecom operator, reported first-quarter revenue of 36.5 billion CFA francs ($62 million), up 4% year-on-year. This follows full-year 2024 revenue of 140.2 billion CFA francs ($238.1 million).Net profit fell 24.7% to 3.9 billion CFA francs ($6.6 million), while EBITDA decreased 8.8% to 15 billion CFA francs ($25.5 million). The company’s EBITDA margin contracted to 41.2% from 47% a year earlier. Onatel recorded FY 2024 net profit of 20.1 billion CFA francs ($34.1 million) with an EBITDA of 63.2 billion CFA francs ($107.3 million).The company blamed increased energy costs, site maintenance in security-challenged areas, and higher Mobile Money commissions for the profit decline. Customer base grew 3.8% to 12.2 million users. Mobile subscribers increased 3.7% while fixed-line customers fell 3%. Internet users (fixed and mobile) rose 7.1%.Growth drivers included Mobile Money transaction volume (+20.4%), prepaid mobile (+3.6%), and high-speed fiber optic services (+104.7%). The company continues investing in network modernization and rural connectivity.

Onatel, 61% owned by Morocco’s Maroc Telecom and 16% held by the Burkina Faso government, operates in West Africa’s increasingly competitive telecom market. The company trades on the regional BRVM stock exchange, which uses the CFA franc to serve eight West African countries. Telecom operators across West Africa face similar challenges of high infrastructure costs and security concerns in certain regions. Despite profitability pressures, ONATEL maintains its market leadership in Burkina Faso, where mobile penetration reached approximately 97% in 2024 according to industry data. The country’s growing demand for data services and mobile financial solutions presents ongoing growth opportunities despite operational challenges.

BRVM Benchmark Stock Index Hits 9-Year High Amid Sustained Rally

West Africa’s BRVM stock market continued its upward trend on Thursday, with the benchmark composite index climbing 0.74% to 300.38 points—its highest level since July 2016. This marks a symbolic milestone, as the equity market’s capitalization reached 11.6 trillion FCFA ($19.8 billion), surpassing that of the regional bond market for the first time.Other indices also posted gains, with the BRVM-30 rising 0.62% to 151.22 points and Prestige up 0.93% to 124.52 points. The gains were driven by strong performances from financial and industrial stocks.Ecobankrose 5.33% to 11,060 FCFA, adding 30.8 billion FCFA in market capitalization and ranking among the top performers.Sitabclimbed 7.48% to 14,655 FCFA, crossing the 14,000 FCFA mark for the first time.BICIfollowed closely, up 7.42% to 15,850 FCFA. Decliners includedUniwax(-6.99%),Bernabe(-3.75%), andNei-Ceda(-3.33%). Total trading volume reached 1.34 billion FCFA, led byOrange(20.16% of transactions) andSonatel(23.09%), reflecting the high liquidity of market heavyweights.

The BRVM’s recent performance reflects renewed investor confidence, driven by improving earnings across key sectors and increasing interest in equities over fixed income. The crossing of the 300-point mark on the composite index and market cap overtaking the bond market suggest a reallocation of capital into higher-yielding, growth-linked assets. Market momentum has been supported by consistent gains in financials like Ecobank and dividend-yielding stocks like Sitab and BICI. These stocks continue to attract institutional and retail investors amid relatively stable monetary conditions in the WAEMU region. The volatility in trading volumes—1.34 billion FCFA after 1.29 billion the day before—shows active rotation and short-term positioning. With large caps like Sonatel and Orange dominating turnover, liquidity remains concentrated but deep enough to support continued upward movement. Investors will be watching for sustainability in earnings and dividend announcements as catalysts to maintain market strength and potentially push the BRVM to new multi-year highs.

Opera Targets Africa’s $54B Stablecoin Market With MiniPay Spinoff

Opera has launched its MiniPay stablecoin wallet as a standalone iOS app, extending access to users across Africa for the first time. Previously embedded in the Opera Mini browser and limited to Android, the move positions MiniPay to compete more broadly in Africa’s $125 billion crypto payments market, where stablecoins made up $54 billion, 43% of transactions in 2024.The app, built on the Celo blockchain, supports USDT, USDC, and cUSD, and now operates across both Android and iOS. It offers daily rewards, integration with platforms like M-Pesa and Apple Pay, and access to over 35 local currencies via third-party liquidity partners including Yellow Card, Fonbnk, and Transak.MiniPay does not handle fiat transactions or conduct KYC checks directly, instead relying on regulated partners for on- and off-ramping. This structure may attract scrutiny in markets like Nigeria, where regulators increasingly view stablecoin platforms as securities exchanges. The app is backed by a $40 million fund led by Opera Group and investors such as Tether and JUMP. Opera plans to expand MiniPay’s functionality into e-commerce, travel, and DeFi payments over the next year.

Opera’s MiniPay expansion comes as Africa’s appetite for dollar-denominated digital assets continues to grow amid local currency volatility and inflation. Stablecoins—backed by the US dollar—offer a practical hedge, enabling everyday savings, payments, and cross-border transfers at low cost. The Celo-based app targets smartphone-first users, leveraging mobile-friendly infrastructure and existing payment rails like M-Pesa to lower the barriers to digital finance. With over 7 million wallets already created, MiniPay aims to become a leading non-custodial wallet across emerging markets. However, compliance remains a key challenge. MiniPay’s reliance on partners for KYC and fiat conversions raises regulatory questions in jurisdictions where crypto services must register as financial entities. In Nigeria, the Securities and Exchange Commission has already warned that stablecoin operators may fall under local securities laws. Still, Opera’s approach—pairing blockchain speed with local payment rails—mirrors growing efforts among fintechs to decentralize access to USD savings and payments. MiniPay’s success may hinge on how effectively it navigates regulation while scaling utility for users priced out of traditional banking.

Senegal Industrial Output Rises Nearly 20% in March on Oil Extraction

Senegal’s industrial production jumped 19.7% in March 2025 year-on-year, fueled by a 75% surge in extractive industries following the start of oil production in the country. The data was released by the National Agency of Statistics and Demography (ANSD) in its May 13 report.The extractive sector’s performance was also supported by an 18.3% rise in metal ore output and a 6.6% increase in other extractive activities. For the first quarter of 2025, overall industrial output rose 65.5% compared to the same period in 2024.Environmental industries also posted gains, with a 10.1% year-on-year increase in March, largely due to a 10% rise in waste treatment and disposal services.

Senegal’s industrial growth in early 2025 reflects the country’s evolving energy and processing sectors. The start of oil extraction is a key turning point, contributing to the extractive sector’s record 75% year-on-year jump in March. This lifted the broader industrial index while also indicating the impact of new natural resource flows on GDP. Environmental services are also expanding steadily, driven by waste management, a growing priority in urban areas. Electricity, gas, and water production grew slightly (+0.5%) in March 2025, primarily due to a 2.3% increase in water output. However, electricity and gas output fell marginally by 0.1%. Over Q1, the sector recorded a modest 0.3% rise compared to the previous year. Manufacturing output declined 1.7% year-on-year in Q1, led by steep drops in mineral materials (-23%) and agri-food production (-9.2%). Still, segments such as refining and coking (+36.5%), metallurgy (+20.7%), paper and cardboard (+13%), and chemicals (+5.2%) posted gains, reflecting a shift toward more capital-intensive and processed goods in the industrial mix.

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.