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The East African : Apr 22nd 2017
BUSINESS, MARKETS AND FINANCIAL ANALYSIS THE MARKET WHISPERER 44 EQUITY MARKETS (WEEKLY CHANGE IN BENCHMARK INDEX) NSE 20 Share Index Kenya 3,102.71 -0.07% DSE All Share Index Tanzania 2,336.04 1.69% APRIL 22-28,2017 theeastafrican.co.ke @The_EastAfrican USE All Share Index Uganda 1,555.00 0.06% RSE All Share Index Rwanda 127.71 -0.06% JSE All Share Index South Africa 53,489.69 1.85% NGSE All Share Index Nigeria 25,510.01 -1.18% Jan ‘16 Apr ‘17 Jan ‘16 Apr ‘17 Jan ‘16 Apr ‘17 Jan ‘16 Apr ‘17 Jan ‘16 Apr ‘17 Jan ‘16 Apr ‘17 IN BRIEF Agriculture firm Eaagads to outsource management of coffee operations Kenyan agricultural firm Eaagads Ltd will outsource the management of its coffee operations to a coffee farm management company called Coffee Management Services Ltd. The company’s board has resolved to subcontract the business subject to regulatory approval. “The shareholders of the company and the public are accordingly advised to exercise caution when dealing with the shares of the company,” the company said in a statement last week. Eaagads is listed on the NSE and is engaged in growing and selling of coffee both locally and on the international market. Its shares on the exchange last week traded at around Ksh22 ($0.22) each. The company, which is based in Ruiru is a subsidiary of Kofinaf Company Ltd, which owns 61.74 per cent of the shares. World Bank launches programme for digital entrepreneurs in Africa The World Bank Group has launched a new programme to help top digital entrepreneurs in Africa gain access to funding and markets for their products. The initiative, dubbed XL Africa, is a five-month business acceleration programme designed to support the 20 most promising digital start- ups from the continent. Start-ups will receive mentoring from global and local experts, increase their regional visibility and get access to potential corporate partners and investors. “Digital start-ups are important drivers of innovation in Africa,” said Makhtar Diop, vice president for the Africa Region at the World Bank. “They need an integrated ecosystem that provides access to regional markets and global finance.” Elecster entry into Kenyan market increases competition in packaging Kenya’s food packaging industry faces stiff competition following the planned entry of Finnish firm Elecster. Elecster, which is headquartered in Akaa, Finland, is the global supplier of packaging materials and ultra-heat treated (UHT) lines for sterilisation of milk, and other dairy products and food preparations such as soup, tomatoes and desserts. The firm has obtained a Kenyan subsidiary with plans to start operations this year. Elecster has more than 50 years’ experience in engineering and manufacturing of dairy machinery and packaging materials. It is argued that Kenya and its East African neighbours have great potential for suppliers in processing and packaging technology. However, the region loses large quantities of locally produced food before they reach consumers due to faulty processing and packaging. US fi≥m ≥aises $1.2m fo≥ co≠ee ma≥keting A US firm, Bext, has raised $1.2 million to streamline coffee marketing through “block chain” technology and thus help farmers in Rwanda and the Democratic Republic of Congo get fairer prices for their produce. The firm, which raised the money through SKS Venture Partners, has developed a machine that uses artificial intelligence to source for quality beans and make payments directly to farmers, societies and banks depending on each partner’s stake in the value chain. Block chain technology is already being used by the World Food Programme to distribute cash assistance. Bext chief executive Daniel Jones said the technology would allow traceability of coffee from “bean-to-brew” while increasing returns to farmers. The farmers will be supplied with an app to monitor market movements. “A lot of importers want the ability to trace and track coffee. They have a picture of the community where the crop is A farmer in Rwanda. The block chain technology will ensure farmers get immediate payment for sale of their coffee. Picture: File grown on their websites. But they do not have last-mile connection to the actual origin of the coffee,” said Mr Jones. Mr Jones, who has lived in Kinshasa for the past five years, founded Ramika, a company that successfully exported conflict-free minerals from the DRC to the US in compliance with supply chain and traceability requirements under the Dodd-Frank Act. “Bext360 bridges the gap. Knowing the farmer receives a fair payment on the spot through their smartphone based on P≥oposal to split KRA into two falte≥s IN OCTOBER President Uhuru Kenyatta directed that the Kenya Revenue Authority be split into two semi-autonomous and interdependent agencies to enhance the efficiency and effectiveness of revenue collection, boost trade and secure Kenyan borders from illegal trade. The proposal was also in accordance with East African Community agreements meant to facilitate trade and enhance security along borders. No progress However, The EastAfrican has learnt that so far no progress has been made towards this end despite the tax body reorganising its operations to pave the way for the creation of the Domestic or Inland Tax Agency and the Customs and Border Control Agency. Sources say the two Bills (The Inland Revenue Agency Bill and the Customs and Border Protection Agency Bill) expected to facilitate the split are gathering dust on the shelf. National Treasury Cabinet Secretary Henry Rotich had assured the public that the two Bills would be tabled in parliament for debate and adoption in 2015 and the reorganisation of the tax body would be concluded in the same year. It is not clear what has held back this process but sources say there is simply no political will to pass the necessary laws to split up the tax body. 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 volume and quality of beans is exciting technology,” said Mark Spencer, SKS founding partner. Bext will this year deploy the platform in Rwanda and eastern Democratic Republic of Congo after completing test runs in Mexico and the US. DRC’s coffee output has stagnated at 1990 levels because of civil war. The country now exports about 24,000 tonnes out of an annual output of 113,000 tonnes. In 2012, the government launched a $100 million sector recovery programme in South Kivu, Orientale, and Bandundu Provinces, aimed at raising output to at least 120,000 tonnes. Farmers will have access to a mobile app for viewing offers for each grade. Once a farmer accepts an offer, they will receive immediate payment. “If the grower accepts, money is immediately transferred via mobile. When the machine is full, it notifies a driver for pickup. It’s possible to integrate microfinance and other business loans or banking products,” said Mr Jones.
Apr 15th 2017