Nigerian logistics startup GoKada has filed for Chapter 11 bankruptcy protection, marking a significant shift in fortunes for the company that once pioneered bike-hailing services in the country. Founded in 2018 by Deji Oduntan and Fahim Saleh, GoKada built a recognizable brand in a competitive space with rivals like ORide and Maxng.

According to an email from CEO Olutosin Oni to investors, GoKada struggled to stay afloat throughout 2024. While the company remains operational, it owes $1.8 million to its 20 largest creditors. This filing allows GoKada to restructure its debts while continuing operations, avoiding immediate liquidation.

The tide turned for the sector in 2020 when Lagos banned commercial motorcycles, nuking the opportunity for enterprising businesses. GoKada transitioned to logistics, switched to an asset-light model by partnering with third-party providers, and laid off staff to reduce costs. Leadership also changed frequently, with Oni becoming CEO in 2022 after a series of transitions that included the tragic loss of co-founder Fahim Saleh in 2020.

Despite attempts to adapt, GoKada's financial struggles persisted. A potential acquisition by logistics firm Kwik in 2022 didn't materialize, and the filings showed revenues of $268,779 in 2023 and $118,988 in 2024 (up to October 2024).

In other news, gig drivers in South Africa and Nigeria are exploring alternative fuel sources as petrol prices surge. In South Africa, petrol prices rose twice in December 2024 and January 2025, driven by high global oil prices and a weak rand. Gig drivers in South Africa now pay R21.59 ($1.14) per liter, with prices expected to rise again in February.

In response, MyBroadBand published an article exploring the cost-saving potential of switching to liquefied petroleum gas (autogas) vehicles. They found that a gig driver traveling 20,000 km per year could save R978.59 ($52) on fuel costs. However, the upfront cost of converting a petrol car to LPG is still a major barrier.

The situation in Nigeria is not much different. After petrol prices spiked from ₦145 to over ₦1,000 ($0.67) within eighteen months, gig drivers started looking into compressed natural gas (CNG) as an alternative fuel. A gig driver with a Toyota Corolla traveling 20,000 km a year would spend ₦343,000 ($223) on CNG refueling, while the same distance with petrol would cost ₦1.5 million ($968).

With the cheaper price of CNG, drivers can save even more as they travel longer distances. However, what are the risks of these retrofitted cars? There's no conclusive answer to this question. Without wider adoption, we cannot know how safe these retrofitted engines are.

In related news, Ethiopia is set to launch its stock exchange, the Ethiopian Stock Exchange (ESX), on January 10, 2025. The ESX will become Africa's 30th stock exchange, and CEO Tilahun Kassahun has expressed optimism to list 50 companies on the bourse in five years—either through an IPO or "by introduction."

Ethio Telecom, the largest telco in the country, will be the first company to list on the exchange, selling 100 million shares for $2.54 each. Through the initial public outing (IPO), the government, which majorly owns the telco, is expected to raise 30 billion birr ($234 million). It is part of the government's plan to open up previously state-controlled industries and provide a capital injection into Ethiopia's underfunded market.

Is 2025 the year we see Banque du Caire's IPO? As Ethiopia prepares to launch its stock exchange, Egypt is set to list the country's 6th biggest bank—or the 1040th company—on its bourse. Conversations about the bank's IPO date back to 2020. The bank was on the cusp of completing a $500 million listing in London and Cairo in 2020 when Covid hit.

If Banque du Caire lists on Egypt's stock exchange, it matters on two levels. The listing of the state-owned bank will continue the government's privatisation efforts. Egypt's privatisation programme is an important criterion for IMF support for the country's struggling economy. The IMF in 2022 asked Egypt to divest more of its state-owned companies in order to receive support. Last year, the Egyptian government pledged that it was going to offer stakes in at least 10 state-held companies in 2025. The government in December sold 30% of its stake in United Bank which debuted on the Egyptian stock exchange in the same month.

Banque du Caire IPO will also help increase liquidity on the Egyptian Exchange. The Egyptian Exchange currently has a market capitalisation of approximately 2.2 trillion Egyptian pounds (EGP). The listing of one of the country's largest lenders will attract both domestic and foreign investors, further boosting trading volumes on the exchange. Foreign investor participation on the EGX is around 20%-25% but bankers expect greater participation as companies like Banque du Caire join.

While the recent report might tip Banque du Caire for an IPO, critics say it's unlikely to happen anytime soon. Critics argue that a strategic sale to a qualified investor, particularly from the UAE, would be a more advantageous route than an IPO. This would likely result in a better valuation and ensure a suitable "corporate parent" for the bank.