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The East African : Feb 18th 2017
BUSINESS, MARKETS AND FINANCIAL ANALYSIS THE MARKET WHISPERER 56 EQUITY MARKETS (WEEKLY CHANGE IN BENCHMARK INDEX) NSE 20 Share Index Kenya 2,951.62 3.12% DSE All Share Index Tanzania 2,181.22 1.63% FEBRUARY 18-24,2017 theeastafrican.co.ke @The_EastAfrican USE All Share Index Uganda 1,420.27 4.43% RSE All Share Index Rwanda 127.38 0.09% JSE All Share Index South Africa 52,604.77 0.57% NGSE All Share Index Nigeria 25,340.02 -2.32% July ‘16 Jan ‘17 July ‘16 Jan ‘17 July ‘16 Jan ‘17 July ‘16 Jan ‘17 July ‘16 Jan ‘17 July ‘16 Jan ‘17 IN BRIEF Data collection startup Bamba raises $1.1 million in investment funds The African data collection startup Bamba last week closed its first seed investment round after raising $1.1 million in investment funds, making it one of the largest seed rounds completed by an East African startup. As a result, Bamba has built a global investor base spread across Silicon Valley, New York, Washington DC, Austin, London and many regions throughout Africa. The startup plans to use the $1.1 million into developing new data collection solutions, supporting a larger number of clients, and expanding its team and geographical reach. Bamba specialises in innovative solutions for gathering cost-effective and high-quality consumer insights from emerging markets. TransUnion to now factor in positive information on borrowers in Kenya TransUnion Credit Reference Bureau in Kenya has reviewed its credit rating system to take into account positive information on borrowers. The company’s first scorecard was developed at a time when lenders were not sharing positive information on borrowers. “The credit performance data for consumers in Kenya will be a more accurate representation of customers’ risk profiles than was previously predicted,” said Mwaoshe Njemah, senior product manager in charge of analytics at TransUnion. The exercise is expected to distinguish better between low- and high-risk individuals to enable lenders to risk more effectively, assign more accurate loan amounts and credit limits and maintain lower bad loan rates by increasing approval rates. AccorHotels plans to acquire travel broker firm, build three hotels in Addis French group AccorHotels has begun exclusive negotiations for the acquisition of Travel Keys, a travel broker that has among its clients a collection of luxury villas in Kenya and South Africa. In Kenya, Travel Keys brokers Alfajiri Cliff Villa in Mombasa and Olarro Lodge in Maasai Mara. It brokers 21 hotels in South Africa and four in Morocco. AccorHotels has also entered into three partnerships with Ethiopian investors for the construction and management of three hotels in Addis Ababa. The hotels will be strategically located near United Nations and African Union headquarters and will be completed in the next two to four years. “We want to maintain our leadership on the continent by consolidating our position in West and North Africa and by boosting our developments in East and Southern Africa,” said AccorHotels CEO Steven Daines. A≥ise, DFCU, take up you≥ $50 million loan A rise, a newly formed investment company, has approved a $50 million shortterm loan for the Development Finance Company of Uganda. The investment company, which is a collaborative partnership between international companies Norfund, FMO and Rabobank, acquires and manages minority stakes in financial service providers in sub-Saharan African. Its core aim is to build strong and stable institutions that serve retail, small and medium enterprises (SMEs), the rural sector, and clients who have not previously had access to financial services. The company has already acquired a 27.7 per cent stake in CAL Bank in Ghana, which initially belonged to DPI, a leading Africa-focused private equity firm with assets in excess of $1 billion under management. The loan facility to DFCU will be used in the recapitalisation of the Ugandan lender. “The facility was made available on commercially agreed terms, to enable commencement DFCU banking hall in Kampala. The lender targets SMEs, rural sector and the unbanked. Picture: File of the recapitalisation of DFCU Bank in the short term, while complying with regulatory capital thresholds,” said Deepak Malik, chief executive of the Arise Group. DFCU concluded an agreement with the Bank of Uganda to purchase the assets and assume the liabilities of Crane Bank which was in receivership. The acquisition of Crane Bank will allow DFCU to diversify its service offerings to its clients and make banking more accessible to the public. Further, the integration will enhance DFCU s competitive edge against peers in the retail and small medium enterprises sector. “The acquisition gives us the impetus to achieve our strategic objective of building a robust retail operation with Kenya launches fi≥st exchange t≥aded fund KENYA’S CAPITAL Markets regulator has approved the listing and trading of the country’s first exchange traded fund (ETF), giving investors the option to put money in commodities such as gold instead of the traditional bonds and shares. Last week the Capital Markets Authority gave a South African firm NewGold Issuer Ltd the green light to issue and list 400,000 gold bullion debentures as a secondary listing on the Nairobi Securities Exchange. The move gives investors an opportunity to diversify their risks by investing in gold that is backed 100 per cent by physical bullion. The value of the NewGold ETF tracks the price of gold. “This is a critical milestone in positioning Kenya as a gateway for regional and international capital flows by developing creative products that promote investor confidence in regional products,” said Paul Muthaura, chief executive of the CMA. Mr Muthaura said the bullion debentures’ listing price would be determined on the listing date based on the real-time market values of gold and the prevailing shilling exchange rate. NSE has been investing in the development of new infrastructure to accommodate the trading of new products such as ETFs and derivatives as trading in traditional products such as shares and bonds falters. 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 multiple delivery channels while consolidating our position as a key player in the SME market segment,” said Juma Kisaame, managing director of DFCU. “It also supports our goal of promoting financial inclusion in Uganda and we welcome the Arise partnership as a contributor to building a stronger financial sector in sub-Saharan Africa,” he added.
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