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The East African : Jan 5th 2015
48 JANUARY 3-9,2015 BUSINESS, MARKETS AND FINANCIAL ANALYSIS THE MARKET WHISPERER EQUITY MARKETS (WEEKLY CHANGE IN BENCHMARK INDEX) NSE 20 Share Index Kenya 5,117.43 2.93% (CUMULATIVE MOVEMENT) DSE All Share Index Tanzania 2,548.90 2.23% USE All Share Index Uganda 1,869.00 0.99% RSE All Share Index Rwanda 135.18 0.53% JSE All Share Index South Africa 49,737.38 0.52% NGSE All Share Index Nigeria 34,657.15 0.66% East Africa Ltd, is looking to deepen the penetration of insurance products by taking up equity in brokers and guiding their management. The company intends to take up equity in insurance brokerage houses in Kenya, Rwanda, Tanzania, Uganda, Ethiopia, Mozambique, Botswana, Zambia, Zimbabwe and Madagascar. Chedid Capital and GML each own 50 per cent of the new joint venture, which will initially set up operations in Kenya. Londonbased Creed Capital, which provides financial advisory services, structured the partnership agreement. The new venture brings together Mauritius’s top conglomerate and Chedid Capital, a insurance and reinsurance mediator focused on the Middle East, North Africa and Europe. GML had $1 billion in turnover as at June 2014 with a portfolio of investments in 300 firms including beverages, banking and insurance. Firm seeks equity in EA insurance brokers A Mauritian firm, GMLChedid & Associates see good growth in the countries around Kenya and believe investing in brokerage of assurance can be a winner for our joint venture,” said GML’s chief executive officer Arnaud Lagesse. GML and Chedid Capital will acquire or partner with firms to help them achieve more growth by providing equity, better governance and modern information technology under the GMLChedid Associates brand name. GML-Chedid & Associ- Insurance companies showcase at the annual Finance and Insurance Expo in Kampala. Picture: Fle The seven largest insur- ance markets in Africa saw total premiums increase by 8 per cent in 2012 to $64.3 billion, with Kenya and Algeria experiencing double-digit growth of 24.5 per cent and 16 per cent respectively. In Kenya, where the firm plans to start commercial operations, this was fuelled by the nonlife sector, which made up two-thirds of the premium in 2013 with a projected growth of 20 per cent per year. Chedid & Associates East Africa Ltd intends to grow its capital from $100,000 to $8 million in the short term in order to take advantage of opportunities in the region’s insurance brokerage. “Everyone is talking about Africa. We can fore- The company intends to take up equity in insurance brokerage houses in Kenya, Rwanda, Tanzania, Uganda, Ethiopia and Mozambique, among other countries ates is expected draw on joint partner’s resources like specialised insurance and reinsurance skills, teams of actuaries, engineers, lawyers, specialised information systems and claim handling services to improve the firms it buys into. A.M. Best Company, which provides insurance industry ratings, said robust growth in a number of African countries had created a vibrant landscape for acquisitions in the insurance sector Time ≥ipe fo≥ public-p≥ivate pa≥tne≥ship in schools? THE QUEST for a more enlightened society has seen East African governments commit a lion’s share of their budgets to education. However, it is becoming increasingly clear that the returns on this investment will get lower and lower because of official incapacity to provide continuity and stem the high dropout rates at every level of transition. In Kenya, a third of the 1.3 mil- lion plus pupils who joined primary school in 2007 did not sit last year’s Standard Eight examinations. Another 200,000 sat the tests but did not achieve the passmark needed to enter secondary school. In Tanzania, more than 12,000 pupils who passed Standard Seven last year will miss places in public schools. More transition casualties are expected at the cut-off for entry into universities. Tanzania, however, could be hav- ing a solution right under its nose — private public partnerships in education. It so happens that private secondary schools can only fill just about half of the places they have. Owners of these institutions have offered the government these slots under an arrangement where parents pay the fee for a public school and the government tops up the rest. Were such a policy to be adopted in Kenya, it would attract private investment in secondary schools where much of the placement headache now lies. Such a proposal has in principle been accepted in Kenya with regard to university placement but is facing operational challenges. Not so in Tanzania, where the government through the Basic and Secondary Education Bill 2014 wants to designate private schools as pub- lic schools and provide them with teachers in exchange for slots in the institutions. Given the way the government runs its own institutions, investors may baulk at this option despite its success in the health sector. What is encouraging is that there is a discourse on how to combine private and public resources in addressing the education needs in the region. The benefits from such a venture would free up public resources for use in areas of minimal return such as physical infrastructure, which may never attract private capital. 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 Minist≥y d≥iving Kenya’s g≥owth? KENYA’S MINISTRY of Planning and Devolution has taken the unusual step of releasing its annual report, in which it takes credit for, among other things, a projected economic growth of 6.1 per cent last year from 5.7 per cent in 2013 and 4.5 per cent in 2012. In a foreword to the report, Cabinet Secretary Anne Waiguru attributes the achievements to the hard work and dedication of ministry staff. The report reads like the pitch politicians make ahead of campaigns and, in a copycat economy like Kenya’s, other ministries are expected to take the cue. Many would be forgiven for thinking the overall performance reflects the collective effort of all Kenyans. While there are no political offices at stake — Cabinet Secretaries are supposedly apolitical — there are the annual awards for the best performing ministries and departments to contend with.
Dec 29th 2014
Jan 12th 2015