After the fanfare of a company’s public listing event, the lonely work begins. Becoming a public company means more scrutiny and the pressure to deliver impressive quarterly results or risk backlash from impatient shareholders. 

Publicly listed African companies are familiar with this dance. Jumia and Swvl have had their stumbles and IHS, which was listed on the New York Stock Exchange in 2021 for an opening price of $21, has seen the impatient side of investors in the last three years. Lately, The tower company once valued at $7 billion is now worth $992.5 million.

IHS which has 40,000 towers across 10 countries has taken a beating in its biggest market Nigeria. The West African giant’s inflation is at an 18-year high, and a decision to float the naira in 2023 has not brought the price stability policymakers hoped for. 

According to its financials, IHS recorded loses of $1.9 billion in 2023 alone up from $470 million the previous year. 

These losses have mounted as alternative electricity sources needed to keep its base stations running in the country have become expensive. The retail price of diesel in Nigeria rose from ₦840.81 per litre in March 2023 to ₦1,341.16 per litre in March 2024. 

While IHS hopes to turn its fortune around, one company might be able to inspire it to find its footing again. Jumia which initially launched an initial public offering in 2019 at $14.50 a share saw its shares fall to about $3.36 last year. However, the company stock is up 150% this year alone, trading at $13.37 on Monday. 

90% of businesses in Nigeria’s informal economy earn less than N500,000 in monthly profit. Click here to explore the financial profile of Nigeria’s informal economy from Moniepoint’s latest report.

Hiring a financial adviser is expensive, so most people settle for the next best thing: finfluencers. Finfluencers (financial influencers) are free, helpful and well, you can listen to them while you do the dishes.

There’s just one problem: not all of them are licenced to give financial advice. So South Africa’s financial institutions market regulator, Financial Sector Conduct Authority (FSCA), wants everyone to be careful when taking financial advice from finfluencers.

While finfluencers have undoubtedly played a role in boosting financial literacy and market participation—with nearly half of South African households now investing—the FSCA is concerned about the potential for misleading information and harmful investment advice.

The play isn’t always profitable: Some finfluencers may prioritise personal gain over the best interests of their followers. This is particularly worrying given the high prevalence of investment scams in South Africa, with nearly seven in ten people either falling victim or narrowly escaping them. And almost half of that number (Gen Zs) take financial advice from these finfluencers.

In Nigeria, this has played out many times, with celebrities endorsing fraudulent investments, especially pyramid schemes. One example is Davido’s Racksterli which garnered over 400,000 investors before it crashed in 2021.

Enter Big Brother, the FSCA: To address these concerns, the FSCA is stepping up its oversight on finfluencers. By monitoring the content and investment recommendations made by these influential figures on social media, the regulator aims to protect consumers and maintain market integrity.

While the FSCA recommends hiring a financial adviser instead to take you through your finances, it is understandable that only a few South Africans can foot the R2,000 ($110) monthly bill for this. Therefore, you should approach financial advice from finfluencers with caution. While they can be a valuable resource, conducting thorough research and considering multiple perspectives before making any financial decisions is crucial.

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COVID-19 didn’t just change the way we worked, it also changed the way we approached skin care. As people spend more time at home, skincare routines have become a norm, leading to increased purchases of skincare and beauty products. 

While women are major users of skincare products, African women often complain of not finding products that suit their skin. Enter Uncover, a Kenyan beauty and skincare company which specialises in formulating tailor-made skincare products for Africans. The startup uses data from users on its app to create personalised skin care products by partnering with top labs across the world.

“The industry has represented only a few skin tones in testing and we are one of the first brands testing on women in Africa. What’s exciting is that we are starting in Africa but seeing global demand and opportunity for our solution,” Sneha Mehta, CEO of Uncover tells us.

The startup has raised $1.4 million in seed funding to expand into Ghana, and Uganda. Uncover will also use the fund to grow its e-commerce platform in the US. 

The startup claims to have over 200,000 users across Kenya, Nigeria, and the diaspora, and has grown its revenue 10x in the last 24 months since its last funding round. Uncover claimed it broke even in the past year and is on course towards profitability

This is Uncover’s third funding round. It raised $100,000 in a 2021 pre-seed round from Antler VC and a $1 million seed round in 2022. In its latest funding round, Uncover provided exits for early investors through a secondary sale, according to its CEO.

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HostAfrica, a leading South African web hosting provider has continued its acquisition spree with deepAfrica, its third Kenyan purchase and eighth internationally since acquiring Domain King in 2021. 

Now operating in Kenya, Ghana, Nigeria, Germany, the UK, and the USA, the company is solidifying its Pan-African footprint.

Its acquisition of Kenya’s deepAfrica will expand its government reach. The latter company services a solid client base including Kenyan government agencies and corporations like National Environment Trust Fund (NELFUND) and Cooperative Alliance of Kenya.

HostAfrica’s acquisition of deepAfrica includes the hosting businesses hostpoa.co.ke and Jijihost.com, along with the integration of deepAfrica’s clients into its network. This strengthens HostAfrica’s position and allows deepAfrica to concentrate on web design services.

HostAfrica is based in Cape Town, South Africa, and has servers both locally as well as in Dusseldorf, Germany, Chicago and Los Angeles in the US, and in the UK. Services and support are offered in English.

The company has built a strong reputation in South Africa, earning praise for its exceptional customer support and impressive 99.9%+ availability.

After a sixteen-year track record of supporting South African SMBs, HostAfrica is expanding its focus to government sectors. With its sights set on continental dominance, the company plans to acquire more local hosting businesses to build a Pan-African network.

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The Africa Prize for Engineering Innovation is open to African innovators creating engineering solutions to local challenges. Innovators from sub-Saharan Africa should pitch viable engineering products or services that will have social or environmental benefits to the continent. Apply for the chance to get up to $25,000 in funding. 

The Future of Capitalism Tech Startup Competition is offering $1 million to one lucky tech startup that can transform how businesses today operate. If your tech can save costs, boost efficiency, increase productivity or customer satisfaction, then apply by September 30 for a chance to win. 
Applications are now open for the 5th cohort of Microsoft’s GrowthX Accelerator Programme. AI Startups can apply to join the eight-week incubator that will provide $25,000 worth of azure credits, mentorship from some of the biggest tech corporations and investor readiness lessons. Apply by September 2, 2024.

Here’s what we’ve got our eyes on

Nigeria’s inflation quickens in June as pressure to cut interest rates mounts
Ruto asks for prayers as Kenyan protests enter fourth week
Trump chooses J.D. Vance as VP running mate
Google is reportedly planning its biggest startup acquisition ever

Written by: Emmanuel Nwosu & Faith Omoniyi

Edited by: Muyiwa Olowogboyega & Timi Odueso

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