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The East African : Sep 19th 2015
56 SEPTEMBER 19-25,2015 BUSINESS, MARKETS AND FINANCIAL ANALYSIS THE MARKET WHISPERER EQUITY MARKETS (WEEKLY CHANGE IN BENCHMARK INDEX) NSE 20 Share Index Kenya 4,236.26 0.62% DSE All Share Index Tanzania 2,569.38 0.66% USE All Share Index Uganda 1,946.00 0.21% RSE All Share Index Rwanda 141.35 -0.01% JSE All Share Index South Africa 50,671.32 3.56% NGSE All Share Index Nigeria 30,162.08 1.61% January ‘15 Sept ‘15 January ‘15 Sept ‘15 January ‘15 Sept ‘15 January ‘15 Sept ‘15 January ‘15 Sept ‘15 January ‘15 Sept ‘15 Inte≥net soon to ove≥take adve≥tising sales B roadcast and print media beware: Internet will soon be the key driver of advertising sales in Kenya, Nigeria and South Africa, according to a sector survey by PricewaterhouseCoopers. That means traditional media will face intensified competition for advertising budgets that are expected to double over the next five years. Nigeria’s entertainment and me- dia market is expected to double to $8.1 billion from $4 billion in 2014. Excluding Internet access, television, filmed entertainment and video games are the areas where Nigerian consumers are expected to spend the most over the next five years. In Kenya, the advertising market will almost double to $3.3 billion in 2019 from $1.8 billion in 2014, but low Internet penetration will give traditional media some respite from the online onslaught. The report shows that South Afri- ca’s total entertainment and media advertising spend is expected to rise by 5.6 per cent from $2.9 billion in 2014 to $3.8 billion in 2019. The PwC report said the abil- ity of brands to reach consumers throughout their day across multiple devices will help drive global total Internet advertising revenue from $135 billion in 2014 to a $240 billion in 2019, compared with broadcast TV spending, which is forecast to rise to $192 billion, up from $162 billion in 2014. “Today’s media companies need to do three things to succeed: Innovate around the product and user experience; develop seamless consumer relationships across distribution channels; and put mobile (and increasingly video) at the centre of the consumer’s experience,” said Vicki Myburgh, entertainment and media leader for PwC Southern Africa. “This year’s outlook,” she added, “shows consumer demand for entertainment and media experiences will continue to grow, while migrating towards video and mobile. Increasingly, though, it’s clear that consumers see no significant divide between digital and traditional media — what they want is more flexibility, freedom and convenience in when, where and how they interact with their preferred content. Traditional media is already growing its online presence fast through own websites and mobile apps.” Experts expect trends in devel- oped countries to be replicated in Africa with Internet advertising taking the lead as the costs come down. Internet advertising has already overtaken television in key markets such as the UK, China and Australia. Ascent Capital buys stake in MTN mobile money agent ASCENT CAPITAL Africa Ltd has acquired a 60 per cent stake in MTN Uganda’s high value mobile money agent, Chims Africa, in its second deal. The private equity firm ac- quired the stake for an undisclosed amount through its Ascent Rift Valley Fund arm. Richard Mugera, the director of Ascent Capital Uganda, said the funds would be used to expand Chims Africa’s network, especially in rural areas. “This investment will allow Chims to ensure availability of its service to customers at all times in this rapidly evolving market,” Mr Mugera said. $80 m Chims CEO Norman Batuma said the firm would increase its mobile money branches from the current 130 to 830 countrywide. Ascent Capital has so far raised Amount that Ascent Capital has raised from International and local investor $80 million from international and local investors including the Norwegian Investment Fund for Developing Countries (Norfund), and the Development Bank of Austria (OeEB), and pension funds such as Kenya Power Pension Fund and Nation Media Group Pension Fund. Early this year, the private equity firm invested $2.5 million in Medpharm Holdings Africa, a leading medical diagnostic laboratory with operations in Ethiopia that has ambitions to set up shop across East Africa. Launched in 2014, Ascent Rift Valley Fund aims to invest between $2 million and $10 million in fast growing enterprises in Kenya, Uganda and Ethiopia. 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 Traditional media is already growing its online presence fast through own websites and mobile apps.” Vicki Myburgh, entertainment and media leader for PwC Southern Africa Kenyan telcos take battle to ma≥ketplace THE BATTLE between Safaricom and Equity Bank for the mobile payment market has finally moved from the boardroom to the marketplace, promising merchants and subscribers alike some freebies. Just a day after Safaricom said it would drive its Lipa na Mpesa (pay via M-pesa) vendor scheme through incentives such as airtime and loyalty points at supermarkets, Equity Bank said it would give a 10 per cent discount for credit to third parties bought through its Equitel thin sim network. It also announced a two-night inpatient medical cover for its subscribers, a path already taken by Safaricom. Through Equitel, Equity is also creating a financial hypermarket on a handset offering cardless cash withdrawals, loan processing and trading in bonds and shares. While both companies want to push sales, the bigger picture is that the rivalry and the innovation feeding it is swiftly driving Kenyan towards a cashless economy.
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