Photograph — Aureus

The 2022 Africa Agriculture Status Report (AASR22) report has revealed that Africa needs between $40 billion and $77 billion yearly from the public sector and up to $180 billion in private sector funding to trigger and sustain agro-food transformation. The report said such funding is needed in areas of supply chain financing through digital solutions, blended finance, partial credit guarantees, risk sharing facilities, fintechs and crop receipts, among others.

It further noted that Africa, which currently received less than half the resources needed to implement the continent’s climate action commitments and nationally determined commitments, needed to avail climate financing to smallholder farmers and other food value chain actors.

Market roundup

Below is the Weekly Economic roundup from Ventures Africa for the week ending Friday, the 9th of September 2022. This economic index gives you a glimpse into recent activities in the African economy and price changes that could affect it.

Stock markets 

Here is how stocks performed in key African markets (Nigeria, Egypt, South Africa, and Kenya) at the end of the week ending Friday, 9th of September 2022:

  • Nigeria

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

Top 5 gainers

CHAMS Holding Company PLC – + 0.05 

P Z Cussons Nigeria PLC. – + 1.05 

NEM Insurance PLC – + 0.60 

e-Tranzact International  PLC – + 0.26 

Unilever Nigeria PLC. – + 1.15

Top 5 decliners

Japaul Gold & Ventures PLC – – -0.04

Honeywell Flour Mills  PLC – –0.28

Vitafoam PLC – -2.35

Multiverse Mining and Exploration PLC – -0.26

Associated Bus Company PLC –  -0.03

  • Egypt

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

Top 5 gainers

ODIN Investment & Development – +19.87%

Remco Tourism Villages Construction Company – +10.43%

Odin Investments – +9.59%

Egyptian Financial & Industrial SAE – +8.87%

Arabian Food Industries – +8.74%

Top 5 decliners

Ismailia Development and Real Estate Co. – -4.99%

Rowad tourism co. – -4.98%

Zahraa Maadi Investment and Development -4.98%

Sharm Dreams for Tourist Investment – -4.33%

Arab Polvara Spinning And Weaving – -4.04%

  • South Africa

The Johannesburg Stock Exchange closed at 68,708.48 representing a -1.44per cent slump week-on-week.

Top 5 gainers

Visual International Holdings – +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 decliners

Brimstone Inv Corp Ltd – -10.16%

African Rainbow Cap Inv – -8.62%

Steinhoff International Holdings – -8.61%

Delta Property Fund Limited – -7.14%

Bytes Technology Group Plc – -6.82%

  • Kenya

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

Top 5 gainers

BOC Kenya Limited – +9.68

Total Kenya Limited – +8.70%

Sameer Africa Plc – +5.42%

Nation Media Group – +4.43%

Trans Century Limited – +2.61%

Top 5 decliners 

Centum Investment Company – -9.45%

BK Group Plc – -4.13%

Safaricom Plc – -2.17%

HF Group Limited – -1.39%

Umeme Limited – -1.37%

Currency markets

Here is how Nigeria, Egypt, Kenya, and South Africa’s currencies performed against the US Dollar at the official markets.

  • The Nigerian naira started the week at 428.75 NGN/$1  to closed at 427.26 NGN/$1.
  • The Egyptian pound started the week at 19.2349 EGP/$1 and closed at 19.2338 EGP/$1.
  • The South African Rand started the week at 17.1878 ZAR/$1 and closed at 17.3100  ZAR/$1.
  • The Kenyan shilling started the week at 120.25 KES/$1 and closed at 120.40 KES/$1.

Oil prices 

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

Crypto markets

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

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

Tech funding

  • Nigerian fintech startup, NowNow Digital Systems has raised USD 13 million in its seed round to improve financial inclusion across Africa.
  • Metaverse Magna (MVM), a blockchain gaming platform, has raised a USD 3.2 million seed sale token round to expand its efforts to build Africa’s largest gaming DAO and provide gamers with access to world-class opportunities.
  • Egypt-based el-dokan, a company specializing in enterprise e-commerce solutions, has raised a USD 550 K pre-seed round.
  • Carzami, an Egyptian online retailer for quality used cars and vehicle financing announced the close of a pre-seed round. 

From the expert

Akinwale Alabi, Visioneer & 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 needs to embrace innovative finance models.

“We should look beyond relying on finances from commercial banks, the DMBs or microfinance banks. We need to start looking at other areas to get proper finance for the agric sector. We need to start bidding in the capital market. We need to start raising different kinds of bonds that will specifically speak to the agricultural needs of African farmers,” he stated

He also emphasised that Africa needs to start establishing farmers’ banks. “These are banks specifically created to meet the needs of farmers. The Bank of Industry and agriculture are doing their best, but private players must be involved to expand the reach of addressing problems across the agricultural value chain. Once we look at this direction, it is possible to raise the $250 billion that can help upscale agriculture in Africa,” he concluded.

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