Online Investor Relations (Africa)

The growth of African capital markets is crucial for our continent's future. Our goal is to increase listings and optimise capital-raising on stock exchanges. First, low inflation and markets free of government interference will boost equity market growth and encourage private capital to flow where it's needed. Additionally, low trading costs are essential to promote liquidity. Market structures should offer completely unrestricted and free access to all investor types, including retail and foreign investors with reliable access to foreign exchange and low custodial fees. Government intervention in market forces should be minimal to maintain a fair market environment. High liquidity and accessible markets at low costs (through digital trading platforms) allow companies to attract diverse groups of shareholders. Strong investor relations practices enhance liquidity and engagement by ensuring that investors receive timely and relevant information. This builds trust and encourages investment. With higher trading volumes, shares will be more accurately valued, paving the way for more shares to be issued and the development of innovative financial products like ETFs. Companies can raise capital more easily, which boosts trading and liquidity. In time, more companies will list, offering investors the chance to directly participate in their country’s economic growth across diverse economic sectors. This cycle of rising markets, increasing listings, and raised capital strengthens the future of African economic growth in which our emerging demographic will share. #investorrelations #capitalmarkets #sustainability

Giraffe Heights Limited, a top business listed on the Pan-African Stock Exchange, faced challenges in staying current with digital corporate communications. Focused on sustainable growth and better shareholder relationships, it recognised its investor relations (IR) practices needed a modern approach. They realised that investors now wanted timely, consistent updates—not delayed quarterly reports, fragmented, or infrequent press releases. To meet this need, Giraffe Heights partnered with CMU [Africa] and AfricanFinancials for a cutting-edge IR solution. Not that fancy, just the basics. Through AfricanFinancials' platform, Giraffe Heights centralised key investor data, ESG updates, and financial metrics, making information easily accessible to all stakeholders. The real breakthrough was AfricanFinancials’ email alert system. Each time there was news—like a share trade, an earnings report, ESG milestone, or event invitation—Giraffe Heights’ investors received instant updates. Also, the email system’s flexibility allowed the company to tailor messages to different investor groups, ensuring relevance for all, from major institutional investors to retail shareholders. Cost-effective and automated, these email alerts saved Giraffe Heights time and resources and the proactive approach became the foundation of Giraffe Heights’ IR, keeping it responsive and prepared for the future of communications and reputation management. The Board was happy and so was Management. They all went for a celebratory lunch (but Management had to get back to the office). The board stayed on. #investorrelations #sustainability #email

The decline of African capital markets is a serious issue with many causes. The evidence is the declining number of listings and the complete absence of capital raising through stock exchanges. First, high inflation and heavy government borrowing block equity markets growth. This limits private capital investment. Next, the cost of trading shares is high, which stops people from buying and selling as often as they might. Market structures are also unbalanced. Foreign investors face limits, fx and tax costs are high, and there is too much regulatory interference. These issues lead to low liquidity, so companies have small, narrow groups of shareholders. Poor investor relations practices make things worse because investors don’t get enough information or access to easy cost-effective trading. This lowers overall trust and makes people less likely to invest. Due to low trading, shares are undervalued, and company-led share buybacks take even more shares off the market. This further limits trading and weakens liquidity. Finally, many companies decide to de-list, which reduces the number of options for investors. Markets go backwards. No listings, no capital raising, no investment. If these structural problems continue, they will hurt the health and future of African public capital markets. There is an anti-dote, of sorts. #investorrelations #capitalmarkets #sustainability

Several clients have raised questions about using AI to curate investor relations information, particularly regarding the risks of inadvertently disclosing material non-public information (MNPI) through AI platforms. With AI’s capabilities to analyze and distribute data rapidly, the challenge of maintaining privacy and regulatory compliance is still as crucial as it ever was. This article provides valuable insights, including case studies that highlight potential pitfalls and best practices for using AI while safeguarding sensitive information. It emphasizes the importance of implementing robust controls to prevent MNPI from being exposed, ensuring that AI enhances investor relations efforts without compromising confidentiality. https://lnkd.in/e7NG74xe #investorrelations #communication #sustainability

The African retail investor, the future powerhouse in capital creation across Africa, in 24 words:- ✅ Digital ✅ Savvy ✅ Ambitious ✅ Empowered ✅ Informed ✅ Analytical ✅ Mobile-first ✅ Opportunistic ✅ Entrepreneurial ✅ Resilient ✅ Global-minded ✅ Tech-driven ✅ Curious ✅ Networked ✅ Agile ✅ Data-centric ✅ Sustainable ✅ Engaged ✅ Visionary ✅ Risk-aware ✅ Goal-oriented ✅ Bold ✅ Inclusive ✅ Strategic #investorrelations #sustainability #capitalmarkets

In the vibrant city of Nairobi, Lumumba stood at the heart of his company’s investor relations team, with one goal: to tell his company’s story in a way that conveyed not just financial potential, but their mission and impact on Africa’s growth. Africa’s capital markets were evolving rapidly, and Lumumba saw that investors wanted more than numbers; they craved a meaningful connection. To meet this demand, he had to answer essential questions: 🦒 What do we offer, and why does it matter? 🦒 Who are we here to serve? 🦒 How do we fulfill our responsibilities to stakeholders? With support from CMU Africa, an initiative dedicated to uniting Africa’s markets through transparency, democratised investment information and shared purpose, Lumumba found his answers. Through AfricanFinancials and The Investor Mailing List, he was able to broadcast his company’s mission, connecting with investors across the continent who sought purpose-driven investments. After he crafted his message, Lumumba realised he was building more than investor relations—he was helping shape the future of African capital markets, one mission-driven story at a time. Have you met Lumumba? If not, don't worry: you will. At some point. #investorrelations #sustainability #Africa

Because of Africa's demographic, retail investors are going to be the powerhouse of African capital markets. It happened in the US and its going to happen in Africa. The value of unclaimed dividends in Nigeria:- 2014: ₦60 billion 2015: ₦80 billion 2016: ₦109.1 billion 2017: ₦130 billion 2018: ₦150 billion 2019: ₦158.44 billion 2020: ₦168 billion 2021: ₦177 billion 2022: ₦190 billion (USD423m) 2023: ₦190+ billion (USD212m) 𝗡𝗼𝘁𝗲: 𝗧he 2023 figure is an estimate based on available data up to that year. The recent significant devaluation of the Nigerian Naira is effectively a tax on retail investors +USD200m of spending power gone. Passive investor relations practices lead to outdated contact information, low investor awareness, and procedural blockers. Regulators can't fix this (they have not been able to). The investor/company interface can. We need unclaimed dividends to be sorted if Africa's capital markets are to reach their potential to raise capital. The solution lies in good investor relations practices and the application of stakeholder engagement sustainability principles. Here's where "sustainability" is relevant.... "Stakeholder engagement” under sustainability principles are crucial because companies proactively engaging with shareholders not only reduces unclaimed dividends but also buildstrust and loyalty among investors—many of whom are also, or should, or could be, valuable customers. #investorrelations #sustainability #unclaimedividends

Avoid the "No Budget" Crunch by Planning Ahead for 2025. As 2025 approaches, many companies need to allocate budgets to investor relations (IR) websites and support. This is not only stressful (particularly if solutions difer from previous years) but also risks not getting support from "finance" or the FD, if they don't look at this strategically. Here’s how you can prepare and avoid surprises: 1️⃣ Context-Based Budgeting Every company’s needs are different, and that’s why context-based budgeting is essential. This approach ensures your financial resources are aligned with your business goals and market context, avoiding last-minute adjustments or unexpected expenses. 2️⃣ Simple Retainers—All-Inclusive, Transparent Services A simple retainer model offers complete transparency. With all services included upfront, you eliminate the guesswork and hidden fees that can disrupt financial planning. Retainers should cover all essential IR services, providing peace of mind and allowing you to focus on strategic growth. 3️⃣ No Additional Investment Needed With everything covered in a single retainer, there’s no need for additional investments throughout the year. This ensures that all your IR website needs, from updates to new features, are taken care of without unexpected financial strain. It’s budgeting made easy—smooth, predictable, and reliable. By securing a tailored budget and a comprehensive retainer for your IR website and support, you'll ensure uninterrupted service delivery. Don’t wait until next year to fight with "finance" —start preparing now to set your company up for success in online IR in 2025. #africanfinancials #sustainability #financingafrica #investorrelations #capitalmarkets

The Capital Markets Union (CMU) [Africa] and AfricanFinancials are helping young retail investors by providing free, essential information on listed companies. This open access lets investors learn by doing, encouraging them to understand the basics of investing. As the World Economic Forum highlights, retail investors are vital, and financial education needs to connect with young people. Accurate, timely information is key to making informed investment choices, and CMU [Africa] and AfricanFinancials are making this possible. With direct access to company data (and company managements), retail investors will explore how and why to invest, empowering them to shape their financial future. Listed companies play a central role, supporting a fair and responsible market system that drives this growth. It's all about supporting responsible free market capitalism. #Investorrelations #Sustainability #FinancingAfrica

African listed must meet and exceed responsible online investor relations standards if they are to garner respect and trust from all investors. Ask Warren Buffett. He knows both sides of the coin. Berkshire Hathaway stands out as a benchmark in corporate governance and transparency, embodying best practices in investor relations and shareholder communication. Its commitment to ethical disclosure and long-term value creation has set a high standard for listed companies worldwide. The company’s success demonstrates the importance of clear, consistent communication with investors, making it a model for African listed companies aiming to build trust and attract committed, long-term shareholders, both internationally and locally. #investorrelations