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The East African : Feb 2nd 2015
56 JANUARY 31 - FEBRUARY 6, 2015 BUSINESS, MARKETS AND FINANCIAL ANALYSIS THE MARKET WHISPERER EQUITY MARKETS (WEEKLY CHANGE IN BENCHMARK INDEX) NSE 20 Share Index Kenya 5,212.11 -0.11% (CUMULATIVE MOVEMENT) DSE All Share Index Tanzania 2,671.89 -1.35% JANUARY 31 - FEBRUARY 6, 2015 BUSINESS, MARKETS AND FINANCIAL ANALYSIS THE MARKET WHISPERER EQUITY MARKETS (WEEKLY CHANGE IN BENCHMARK INDEX) NSE 20 Share Index Kenya 5,212.11 -0.11% (CUMULATIVE MOVEMENT) DSE All Share Index Tanzania 2,671.89 -1.35% USE USE All Share Index Uganda 1,851.00 6.96% RSE All Share Index Rwanda 135.63 -1.34% JSE All Share Index South Africa 51,221.54 2.63% NGSE All Share Index 29,528.72 Nigeria -0.86% pension industry in order to support businesses eyeing contracts in the oil and gas sector. A stronger pension in- dustry would support companies listing shares and other fixed investment papers at the Kampala Securities Exchange, helping them raise more money for operations. “The pension system re- forms and capital markets development can increase the availability of long-term resources in the financial system,” said Valeria Goffe, a financial and private sector development specialist at the World Bank. Uganda’s oil and gas sec- tor is getting closer to development and production, which provides more opportunities for local linkages than during exploration. Despite laws being passed to support local suppliers in procurement for big projects, lack of capital has impaired their capacity to take up available opportunities. Related to this is lack Uganda supplie≥s st≥uggle to ea≥n f≥om oil T he World Bank wants Uganda to reform its high potential for national content. These include transport and logistics, food supply, security, waste management, cement manufacturing, facility management, manpower agency, work safety products and road construction. Quality certification Despite the services being less technical, local firms have only met their quota in security and cement manufacturing. Inadequate quality certification and lack of reliable infrastructure like electricity and roads have also been blamed for this. Ms Goffe said the World A flaring test at the Waraga 1 well in Hoima district. The World Bank wants Uganda to reform its pension industry to support firms eyeing contracts in the oil and gas sector. Pic: File of collateral and in some cases financial literacy. A new World Bank re- port, Leveraging the Oil and Gas Industry for the Development of a Competitive Private Sector in Uganda, which was released last week, says the government should put in place risksharing facilities and credit lines for long-term capital. This would include opening up a collateral registry that displays mortgaged property to reduce multiple charging of securities by borrowers. An industrial baseline survey carried out by the international oil companies identified 25 areas with a Multinationals should form subsidiaries to handle contracts in sectors where local capacity would take a while to build. Bank usually channels its lines of credit through the Treasury. She said multinationals should form subsidiaries to handle contracts in sectors where local capacity would take a while to build. “Each individual deal would be structured depending on unique circumstance and requiring a specified percentage of local ownership is not recommended,” says the report. Kenya joins ‘Lucky Seven’ successo≥s of BRICS KENYA IS tipped to be among seven economies that will replace the BRICS as new frontiers for longterm investment. According to Fortune magazine, the other markets it dubbed the “Lucky Seven” are Indonesia, Mexico, India, Columbia, Poland and Malaysia. India, already a member of the BRICS (Brazil, Russia, India, China and South Africa), is projected to remain among the world’s hotspots for capital. The February 2015 edition of the magazine says the seven have demonstrated improved gov- ernance and stability, factors that have helped Kenya edge its bigger African rivals like Nigeria and South Africa. The magazine observes that with China’s economy slowing, Brazil on the brink of economic recession owing to severe drought and massive tax increases and the drop in crude 7 prices taking a heavy toll on Russia’s economy, the economic powerhouses of BRICS are headed for a difficult period. Economic turmoil “Africa’s other large economies, The new members of the bloc that Fortune says will replace BRICS Nigeria and South Africa, face more than their share of political and economic turmoil these days, but Kenya appears headed in the other direction,” the magazine says. Fortune says President Uhuru Kenyatta appears poised to fasttrack the overdue expansion of the power sector and other infrastruc- ture, helped by Jubilee’s parliamentary majority. The magazine says the govern- ment has strengthened the state’s security bureaucracy in the wake of recent terrorist attacks and that the ICC withdrawal of charges against Kenyatta brings a new measure of stability. “The implementation of IMF- supported fixes to Central Bank and Treasury management ought to keep inflation in check and the currency stable as well,” says the magazine. 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 80pc natu≥al ≥esou≥ces deals went to Da≥, Kenya TANZANIA AND Kenya attracted the lion’s share of investments in natural resources that came to East Africa last year. According to corporate fi- nance advisory firm Burbidge Capital, the two countries accounted for over 80 per cent of the total deals concluded in the natural resources sector last year. The region recorded 145 cor- porate deals worth $3.4 billion, indicating a 49 per cent growth from the number of deals closed in 2013. The natural resources sector had 38 deals, compared with 22 in 2013. The financial sector concluded 30 deals valued at $515.8 million. According to the report, a number of private equity and mergers and acquisition transactions were completed in the region during the period, while private equity exits are becoming more common in the region. Five PE exits occurred in 2014.
Jan 26th 2015
Feb 9th 2015