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The East African : Apr 1st 2017
BUSINESS, MARKETS AND FINANCIAL ANALYSIS THE MARKET WHISPERER 48 EQUITY MARKETS (WEEKLY CHANGE IN BENCHMARK INDEX) NSE 20 Share Index Kenya 3,077.81 3.15% DSE All Share Index Tanzania 2,279.84 0.59% APRIL 1-7,2017 theeastafrican.co.ke @The_EastAfrican USE All Share Index Uganda 1,476.00 2.29% RSE All Share Index Rwanda 127.94 0.19% JSE All Share Index South Africa 51,839.97 -1.18% NGSE All Share Index 25,404.54 Nigeria -0.97% Jan ‘16 Feb ‘17 Jan ‘16 Feb ‘17 Jan ‘16 Feb ‘17 Jan ‘16 Feb ‘17 Jan ‘16 Feb ‘17 Jan ‘16 Feb ‘17 IN BRIEF PE firm Catalyst now ready to ‘make investments and close deals’ Nairobi-based private equity firm Catalyst Principal Partners has completed the first close of its second investment fund (Catalyst Fund II LP) at $103 million, putting the fund in a position to start making investments and closing deals. Fund II is targeting $175 million of funds under management and expects to hold a final close later in the year. The fund would maintain Catalyst’s regional investment strategy, focused on mid-market growth capital investments, backing dynamic entrepreneurs and managers within fast moving consumer demand-driven sectors across East Africa. Catalyst Fund II is supported by a group of leading global investors, including Fund of Funds, development finance institutions and family offices. Kenya, Uganda, DRC to get $104m from EIB for small development projects The European Investment Bank last week approved two new credit lines amounting to Ksh10.45 billion ($104.5 million) to support implementation of small development projects in Kenya, Tanzania, Uganda and the Democratic Republic of Congo. The funds will be channelled through Equity Bank and the Housing Finance Corporation. The on-lending will be done in either dollars or local currencies in order to contribute towards job creation and poverty reduction. Of this amount, Ksh8.25 billion ($82.5 million) has been allocated to Equity Bank Group to be disbursed through the bank’s regional subsidiaries in Tanzania, DRC and Uganda, while Ksh2.2 billion ($22 million) has been given to HFC. Merchants happy as Safaricom cuts cost of mobile money payments Mobile phone operator Safaricom has cut all Lipa na M-Pesa fees by 50 per cent effective from April 2. Under the revised tariffs, merchants will be charged a maximum of 0.5 per cent of the transaction amount, down from the previous maximum of one per cent. In addition, Lipa na M-Pesa merchants will be charged a flat fee of Ksh200 ($2) for any payments above Ksh40,000 ($400). “This development will boost the attractiveness of the Lipa na M-Pesa platform to more small and medium enterprises while making the service more affordable as compared with the alternatives in the market,” said Bob Collymore, Safaricom chief executive officer. The M-Pesa “Kadogo” tariff announced in 2016 will also be expanded to Lipa na M-Pesa Buy Goods and Services to enable merchants to receive all transactions of Ksh200 ($2) and below at no cost. Uganda, Kenya get $253m from AfDB for roads T he African Development Bank has approved $253 million’s worth of loans to the governments of Kenya and Uganda for the upgrading of 118km road section connecting the two countries as well as the construction of the 32km Eldoret town bypass in Kenya. The financing consists of $147.3 million for Kenya and $105.7 million for Uganda. The project, scheduled for completion in 2021, is expected to improve the living standards of the 1.4 million people in the project’s “zone of influence.” The upgrading of the 118km road connecting Kapchorwa in Uganda to Kitale in Kenya will provide all-weather access across the border for travellers, farmers and traders. The project also includes the construction of a one-stop border post in Suam to facilitate trade between the two countries. In a statement last week, the Bank said the upgrading of the road will reduce the travel time in Uganda (Kapchorwa-Suam) from 4 hours to 1.5 hours and in Kenya Project outcomes include improved access for traders and transporters and people living in the project area.” congestion in Eldoret Town, by avoiding crossing of the city centre. Thus, the average speed will increase from 26km/hour in the existing road to 42km/hour using the Eldoret Bypass. Project outcomes include A new road under construction in Kenya. The AfDB is funding new road projects in Kenya and Uganda. Picture: File (Suam-Kitale) from 1.5 hours to 45 minutes. The financing will cover 89 per cent and 88 per cent of the Uganda and Kenya project costs respectively. The governments of Uganda and Kenya will contribute 11 per cent and 12 per cent of their respective country project costs. The construction of the Eldoret Bypass (32km) will reduce traffic Insu≥e≥ Jubilee’s net ea≥nings up 17.8 pe≥ cent REGIONAL INSURER Jubilee Holdings Ltd has declared a dividend payout of Ksh8.5 ($0.085) per share to its shareholders. This is after its net earnings for the year ended December 31, 2016, grew by 17.8 per cent to Ksh3.68 billion ($36.8 million) helped by significant growth in group and individual life business. The insurer, with operations in Kenya, Uganda and Tanzania, will also recapitalise about Ksh3 billion ($30 million) of its reserves by giving out 6,588,460 additional shares to its shareholders in the form of a bonus issue at the ratio of one share for every 10 held. The firm’s stock on the Nairobi Securities Exchange last week Thursday closed the trading session at Ksh500 ($5) per share. JHL’s group and individual life business grew 43.7 per cent while the medical and general insurance business, which were impacted by intense price competition and delays in infrastructure investments across the region, grew by 15.9 per cent and 4.5 per cent respectively. Kenya’s difficult operating environment has seen a growing number of firms listed on the NSE issue profit warnings, among them insurance firms. “We have weathered the tough environment to post the best results in this sector with all business segments and operations posting positive growth,” said Nizar Juma, Jubilee’s chairman. 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 improved access for traders and transporters using the border and people living in the project area with reductions in travel time, transport cost, increased mobility, and improved access to economic and social facilities. The project complements the Bank-supported Irrigation Scheme and Drought Resilience and Sustainable Livelihood projects in Uganda and Kenya respectively.
Mar 25th 2017
Apr 8th 2017