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The East African : Aug 16th 2015
64 AUGUST 15-21,2015 BUSINESS, MARKETS AND FINANCIAL ANALYSIS THE MARKET WHISPERER EQUITY MARKETS (WEEKLY CHANGE IN BENCHMARK INDEX) NSE 20 Share Index Kenya 4,496.23 1.84% (CUMULATIVE MOVEMENT) DSE All Share Index Tanzania 2,601.97 2.38% USE All Share Index Uganda 1,948.00 1.88% RSE All Share Index Rwanda 142.34 -0.60% JSE All Share Index South Africa 51,023.40 -2.43% NGSE All Share Index Nigeria 30,690.93 -2.39% 2 Jan ‘15 2 July ‘15 2 Jan ‘15 2 July ‘15 2 Jan ‘15 2 July ‘15 2 Jan ‘15 2 July ‘15 2 Jan ‘15 and M-Shwari’s reach in Kenya to grow its market share, thanks to Sema Doc, a mobile health platform that enables clients to get consultation and treatment via calls and SMS. The platform is a brain- child of Hello Doctor Kenya, a wholly owned subsidiary of MMI Holdings Ltd, South Africa’s third largest insurance company, trading in Kenya as Metropolitan Life Kenya and Cannon Assurance. MMI Holdings owns a majority stake in Metropolitan Life. “We are hoping that the mobile phone product will attract many subscribers, driving our clientele base and premiums up,” said Tedd Okinda, research and development manager at Cannon Assurance. Hello Doctor Officials said they will launch the product in other East African countries as well. Cannon has less than two per cent market share in an industry with 43 insurers, according to data from the Association of Kenya Insurers, while Metropolitan Life Former finance minister Robinson Githae (left) with Cannon Assurance managing director Maina Mukoma at a launch in 2013. Cannon is seeking more market share in the region. Pic: File had a 0.5 per cent market share according to the 2013 IRA data. At a monthly premium of Ksh300 ($3) paid through M-Pesa, customers will have access to Sema doctors at a flat rate of Ksh60 ($0.6) per call and Ksh20 ($0.2) per SMS. A hospital cash benefit of Ksh5,000 ($50), underwritten by Cannon Assurance Limited, will be paid out to customers who are admitted to hospital for at least one night. Commercial Bank of Af- rica through M-Shwari will offer up to Ksh10,000 ($100) in loans — at an in- terest rate of five per cent — paid through M-Pesa to the hospital’s pay bill number. Normal M-Shwari loans attract a 10.5 per cent interest rate. Analysts said Safaricom will benefit from the M-Pesa and M-Shwari transactions while CBA will see its loans portfolio rise. According to CBA, loans for health-related emergencies constitute up to 27 per cent of the Ksh60,000 ($600) in loans given out daily. The bank said MShwari has 12 million customers with deposits esti- Cannon banks on M-Pesa to g≥ow Sema Doc C annon Assurance Ltd hopes to use M-Pesa 2 July ‘15 2 Jan ‘15 2 July ‘15 mated at over Ksh153 billion ($1.5 billion) since its launch in 2012. CBA had extended loans amounting Ksh29 billion ($290 million) by February processing, an average of 50,000 loans per day. The launch comes a month after Airtel Kenya, Pan Africa Life Assurance and MicroEnsure launched an insurance cover matching the amount of airtime a subscriber spends each month. Analysts said low pen- etration of insurance in the Kenyan market, at 3.5 per cent, presents an opportunity for innovative firms. “ If the success of CBA in M-Shwari is replicated, Cannon could push insurance penetration to lowincome earners who fear the huge premiums set by many insurance companies. The convenience that comes with the use of a mobile phone will change the insurance game,” said Eric Munywoki, an analyst at Old Mutual Securities. “Having a standby doctor to listen to your case any time from any spot could work for Cannon.” Kenya, Uganda fi≥ms seek $2.1m in angel capital SIX COMPANIES from Kenya and Uganda will pitch their enterprises to investors with the aim of raising a combined $2.1 million of new capital after a successful incubation. Green Bio Energy and Beyonic of Uganda will join Kenya’s Maramoja Transport, Maji Milele, Taka Taka Solutions and Continental Renewable Energy to reach out to angel investors to inject money for their expansion. Arielle Molino, the regional manager for Intellectual Capital Advisory Services (Intellecap), which prepared the firms’ presen- $150,000 The least amount individual enterprises are seeking to raise tations, said between 35 and 50 angel and institutional investors will attend the presentations in Nairobi. “The average investment raise for Saturday’s showcase is $300,000. Individually, the enterprises are looking to raise investments between $150,000 and $600,000,” Ms Molino said. Intellecap, through its Impact Investment Network (I3N) identi- fies promising enterprises, prepares them for investment and facilitates investors who put money directly into an enterprise. The enterprise then pays the ad- visory firm a success fee ranging between two and three per cent of the investment funds. Its preferred sectors are agricul- ture, health, water and sanitation, education, clean energy, financial inclusion, technology, and mobility. 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 C≥oss-listing on Jo’bu≥g, Nai≥obi, Lagos coming THE THREE top stock exchanges in Africa have started discussions that will lead to dealing of exchange traded funds (ETFs) on their platforms, giving investors a broader platform to mitigate against market risks. ETFs are a mix of equities, commodities or bonds sold as a unit in order to enable investors to spread risks across a range of securities listed on an exchange. Cross-listing The cross-listing will help in- vestors punt on securities floated at the Johannesburg, Nairobi and Nigeria stock exchanges. The cross-listing is expected to help improve the liquidity of the stock exchanges, especially for counters tracked by indices such as the FTSE/ JSE Top 40, the FTSE/NSE Kenya 15 Index, and the MSCI/Nigeria. A week ago, Kenya’s Capital Markets Authority floated for public discussion its proposed guidelines for ETF transactions.
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