Weekly Economic Index: Africa needs $250 billion to transform its agricultural sector

The Africa Agriculture Status Report 2022 (AASR22) revealed that Africa needs between $40 billion and $77 billion a year from the public sector and up to $180 billion in private sector financing to trigger and sustain agribusiness transformation. The report indicates that such financing is needed in the areas of supply chain finance through digital solutions, blended finance, partial credit guarantees, risk-sharing mechanisms, fintech and agricultural receipts, among others.

This further noted that Africa, which currently receives less than half of the resources needed to implement the continent’s climate action commitments and nationally determined commitments, must make climate finance available to smallholder farmers and other actors in the food value chain.

Market overview

Below is Ventures Africa’s weekly economic summary for the week ending Friday, September 9, 2022. This economic index gives you an overview of recent activity in the African economy and price changes that may affect it.

Stock markets

Here is how stocks fared in major African markets (Nigeria, Egypt, South Africa and Kenya) as of the end of the week ending Friday, September 9, 2022:

The NGX All-Share index depreciated by 0.70% to end the week at 49,695.12 basis points, compared to 50,045.83 basis points recorded the previous week.

Top 5 winners

CHAMS Holding Company PLC – +0.05

PZ Cussons Nigeria PLC. – + 1.05

NEM Assurance PLC – +0.60

e-Tranzact International PLC – +0.26

Unilever Nigeria PLC. – + 1.15

Top 5 refusals

Japaul Gold & Ventures PLC – – -0.04

Honeywell PLC Flour Mills – –0.28

Vitafoam API – -2.35

Mining and Exploration Multiverse Automaton – -0.26

Associated bus company PLC – -0.03

The EGX 30 closed the week at 10,265.35 points, gaining +0.32% percent on Thursday, September 8, from 9,936.87 basis points the previous week.

Top 5 winners

ODIN Investment & Development – ​​+19.87%

Remco tourist village construction company – + 10.43%

Odin Investments – +9.59%

Egyptian Financial and Industrial SAE – +8.87%

Arab Food Industries – +8.74%

Top 5 refusals

Ismailia Development and Real Estate Co. – -4.99%

Rowad Tourism Company. – -4.98%

Zahraa Maadi Investment and Development -4.98%

Sharm Dreams for tourism investment – -4.33%

Arab polvara spinning and weaving – -4.04%

The Johannesburg Stock Exchange closed at 68,708.48 which represents a decrease of -1.44% week-over-week.

Top 5 winners

Visual international participations – +25.00%

MC Mining Limited – +15.01%

4Sight Holdings Limited – +15.00%

Salungano Group Ltd – +7.41%

Anglo American Platinum Limited – +6.86%

Top 5 refusals

Brimstone Inv Corp Ltd – -10.16%

Inv African Rainbow Cap – -8.62%

Steinhoff International Holdings – -8.61%

Delta Property Fund Limited – -7.14%

Bytes Technology Group Plc – -6.82%

The Nairobi Securities Exchange (NSE) All-Share Index gained 1.39% from 138.01 to 141.64 points week after week.

Top 5 winners

BOC Kenya Limited – +9.68

Total Kenya Limited – +8.70%

Sameer Africa Plc – +5.42%

National media group – +4.43%

Trans Century Limited – +2.61%

Top 5 refusals

Centum Investment Company – -9.45%

BK Group Plc – -4.13%

Safaricom Plc – -2.17%

HF Group Limited – -1.39%

Umeme Limited – -1.37%

Foreign exchange markets

Here is how the currencies of Nigeria, Egypt, Kenya and South Africa have performed against the US dollar in official markets.

  • The Nigerian Naira started the week at NGN428.75/$1 to close at NGN427.26/$1.
  • The Egyptian pound started the week at 19.2349 EGP/$1 and closed at EGP19.2338/$1.
  • The South African Rand started the week at ZAR17.1878/$1 and closed at ZAR17.3100/$1.
  • The Kenyan shilling started the week at KES 120.25/$1 and closed at 120.40 KES/$1.

Oil prices

  • Brent oil closed on Friday, September 9 at $92.42 per barrelagainst $93.28 recorded the previous week.
  • The West Texas Intermediate (WTI) closed the week at $86.10 per barrel against $86.87 a barrel last week.

Crypto Markets

By Coinmarketcap, the global cryptocurrency market capitalization stood at $1.06T as of 1:50 WAT on Sunday, representing a 1.27% increase from the last day. Here is how the top three cryptocurrencies fared:

  • Bitcoin gained 8.97% over the week to trade at $21,625.32 at report time.
  • Ethereum gained 13.22% to trade at $1,773.31.
  • Binance coin gained 6.29% to trade at $295.89.

Technology funding

  • Nigerian fintech start-up, NowNow digital systems raised $13 million in its fundraising round to improve financial inclusion in Africa.
  • Metaverse Magna (MVM), a blockchain gaming platform, has raised a $3.2 million seed sale round to expand its efforts to build Africa’s largest gaming DAO and provide players with access to world-class opportunities.
  • Based in Egypt el dokana company specializing in e-commerce solutions for businesses, raised a pre-seed funding round of US$550,000.
  • Carzamian Egyptian online retailer of quality used cars and vehicle finance, announced the closing of a pre-seed round.

From expert

Akinwale Alabivisionary and co-founder of Corporate Farmers International – an award-winning farm management company, explained that for Africa to reach its potential within the agricultural ecosystem, it must embrace innovative financing models.

“We should look beyond funding from commercial banks, DMBs or microfinance banks. We need to start looking at other areas to get adequate funding for the agricultural sector. We need to start bidding on the capital market. We need to start raising different types of bonds that will specifically address the agricultural needs of African farmers,” he said.

He also stressed that Africa must start establishing farmers’ banks. “These are banks specifically created to meet the needs of farmers. The Bank for Industry and Agriculture is doing its best, but private actors need to be involved to broaden the scope of problem solving along the agricultural value chain. Once we look in this direction, it is possible to raise the $250 billion that can help improve agriculture in Africa,” he concluded.

Lana T. Arthur