For Online E-newspaper
The East African : Nov 3rd 2014
64 NOVEMBER 1-7,2014 BUSINESS, MARKETS AND FINANCIAL ANALYSIS THE MARKET WHISPERER EQUITY MARKETS (WEEKLY CHANGE IN BENCHMARK INDEX) NSE 20 Share Index Kenya 5,194.89 -0.05% (CUMULATIVE MOVEMENT) DSE All Share Index Tanzania 2,632.05 -1.35% USE All Share Index Uganda 1,846.00 1.21% RSE All Share Index Rwanda 134.44 -1.27% JSE All Share Index South Africa 49,557.65 3.37% NGSE All Share Index 37,452.05 Nigeria -3.30% NHC seeks to att≥act ≥eal estate ba≥ons T anzania’s National Housing Corporation wants foreigners to be allowed to directly own property in the country. Although the corporation believes this would pull new money into the real estate sector, it is not clear how this would be achieved given that Tanzania has to date jealously guarded its land from encroachment by foreigners, including citizens of other East Africa Community states. The proposal, which NHC director-general Nehemiah Mchechu said is being discussed in government, comes soon after the corporation signed investment deals worth $1.7 billion with Chinese developers. Mr Mchechu said relaxing rules on foreign ownership of property would encourage investors who now seek seaside havens in Dubai and Seychelles to consider Tanzania’s coastline. However, he was not sure when a decision would be made. “Some countries grant resident permits to foreigners who buy proper- Liaisons with foreign property developers would aid NHC in fulfilling its mandate. The parastatal has committed to build 15,000 housing units between 2010 and 2015 and Mr Mchechu said the Land Act of 1999 would need to be amended before foreigners can own property in the country another 158,000 by 2020. The joint ventures with Tanzania’s National Housing Corporation is looking for foreign investors to help it achieve some of its goals, which include a $200 million housing project in Dar es Salaam. Picture: File ty. Allowing people to own property in your country is a source of FDI. I am optimistic that the government will see value in the proposal,” said Mr Mchechu. The Unit Titles Act of 2008 allows Tanzanians to own part of a real estate holding referred to as a unit, a form of sectional holding. Foreign investors are only allowed to own land and property through the Tanzania Investment Centre. Mr Mchechu said the Land Act of 1999 would need to be amended before foreigners can own property in the country. “The Land Act’s description of land includes every- thing on the land, therefore you can’t separate owning property and land. Foreigners owning property can only do so through the Tanzania Investment Centre (TIC) for investments only. The Land Act has to be amended for the changes to be effective,” said a Dar es Salaam-based lawyer. China include a $1 billion agreement with China Railway Jianching Engineering (CRJE) to build Salama Creek, a mixed-use urban hub, a $500 million Financial Square and a $200 million housing project; all in Dar es Salaam. NHC is also looking for local investors who can contribute at least $30 million in equity under a design, build & operate arrangement. M-Pesa b≥ings Kenya T-Bills, bonds to the masses THE KENYA Treasury is finalising plans to allow investors to trade in T-bills and government bonds through mobile money transfer service M-Pesa in a bid to wrest power over the domestic public debt from commercial banks. Last month, the government started aggressively marketing its bond issues to retail investors, leading to a 158 per cent subscription for the first tranche of the 12-year infrastructure bond that closed on October 21. The Ksh15 billion ($166 million) issue was so successful that the government immediately floated a tap bond (an extension of the original bond) of another Ksh20 billion ($222 million) at a yield of 11.263 per cent discovered from the first tranche. The tap bond sale closes on November 20. That out of the 974 investors who applied to lend money to the government, only 421 bids — less than half — were accepted, was also significant. This means that most of the bids were not competitive, that is, investors wanted to lend at higher yields. It also suggests that they were placed by institutional investors, commercial banks and high net worth individuals who usually have astute investment advisors on call. In contrast, retail investors who only require a depository account at the Central Bank and a minimum of Ksh50,000 to punt on the bond market apply for consideration on a best available basis. This gives the government the leeway to select the most attractive offer. Now the state is working with Safaricom, which runs the M-Pesa service, to develop an IT platform that will give retail investors a hands-on window for investing in government paper. It is envisaged that Safaricom will assign special M-Pesa Pay Bill numbers to Treasury bill auctions and government bonds, enabling Kenyans to earn returns from the low-risk instruments. Interest rates earned from the bonds and T-Bills will be paid through M-Pesa, helping the government reduce the cost of debt and increase citizen participation in the public debt market, currently dominated by commercial banks. Published at Nation Centre, Kimathi Street, and Printed at Mombasa Road, Nairobi by Nation Media Group, Box 49010, GPO Nairobi, 00100. Registered at the GPO as a newspaper. Nairobi Office, Tel: 3288000, 211448, 337710, Fax 214531, 213936. Dar es Salaam Office. Tel: 2119657/8. Kampala Office, Tel: 232771, 232772. Fax 232781 Download free QR Readers from the web and scan this QR (Quick Response) code with your smart phone for pictures, videos and more stories Royal O≥chid Hotels of India expands in East Af≥ica INDIAN LUXURY business travel host Royal Orchid Hotels will launch its second outlet in East Africa on Tuesday this week, increasing the diversity in a segment dominated by European service providers. The Royal Orchid Azure in Westlands, Nairobi, opened quietly on September 13 this year, targeting the increasing number of Indians who are coming to the region for business. Next destination “In the near future, we shall be scouting for properties in Rwanda,” Chender K Baljee, managing director of Royal Orchid Hotels, said in an interview ahead of the launch. The chain last year opened the 50-suite Malaika Beach Resorts in Mwanza, Tanzania. It is also planning a 150-key facility on a 39-acre beach property in Dar es Salaam.
Oct 27th 2014
Nov 10th 2014