Confusion reigns over Spanish goalkeeper David De Gea's expected transfer to Real Madrid.
Read More here >> News24
Monday, August 31, 2015
News24.co.ke | Trio set to depart Old Trafford
At least three players are expected to depart Manchester United before the transfer window closes Tuesday evening.
Read More here >> News24
Read More here >> News24
>>> UAP counts losses as Uchumi issues profit warning for 2015
The loss was mainly attributed to the weakening of regional currencies against the United States dollar and reduced investment income brought about by the unrealised losses in the value of equities listed on the Nairobi Securities Exchange (NSE).
The group’s investment income reduced by 28 percent to Sh716 million down from Sh992 million recorded in 2014.
The group however recorded a 9 percent increase in gross written premiums to Sh8.1 billion from Sh7.9 billion recorded same period in 2014.
“Our expenses increased by 14 percent due to significant investment in creation of capacity for growth in the group’s new subsidiaries in Kenya Uganda, Rwanda, Tanzania and DRC. In addition the groups finance costs also increased over 300 percent due to interest cost of UAP corporate bond and the group’s property development,” the management said.
The Group and Old Mutual combined their businesses to form UAP-Old Mutual management following the takeover of its business by Old Mutual.
The combined business of UAP Holdings and Old Mutual Kenya will be listed at the Nairobi Securities Exchange (NSE) once the ongoing integration of the two businesses is complete.
Old Mutual initially acquired 23.33 percent stake in UAP held by Centum Investment Company and Industrialist Chris Kirubi.
READ: Why I sold my stake in UAP Holdings
The firm also bought 37.3 percent shareholding from private equity firms including Abraaj Group, AfricInvest and Swedfund.
Former UAP Group Managing Director Dominic Kiarie quit after the UAP and Old Mutual Group merger.
Meanwhile Uchumi Supermarkets has warned that its 2015 full year profits will decline by about 25 percent attributing to what the management termed as ‘challenges of working capital’.
The retail chain halted its expansion plans after noting that the expansion was conducted without internal capacity or funding.
In the last two weeks the board has managed to poach Naivas Supermarkets Retail Business Executive Willy King’ara to be the new Chief Operating Officer and Equity Banks Chief Operating Officer Julius Kipngetich to be the new CEO.
READ: Kipngetich leaves equity to head struggling Uchumi
“A comprehensive revamp of Governance as well as processes and procedures has started and we have already seen a change in our stores with increased customer footfall and revenue,” the Uchumi management said.
UAP counts losses as Uchumi issues profit warning for 2015
UAP counts losses as Uchumi issues profit warning for 2015
The loss was mainly attributed to the weakening of regional currencies against the United States dollar and reduced investment income brought about by the unrealised losses in the value of equities listed on the Nairobi Securities Exchange (NSE).
The group’s investment income reduced by 28 percent to Sh716 million down from Sh992 million recorded in 2014.
The group however recorded a 9 percent increase in gross written premiums to Sh8.1 billion from Sh7.9 billion recorded same period in 2014.
“Our expenses increased by 14 percent due to significant investment in creation of capacity for growth in the group’s new subsidiaries in Kenya Uganda, Rwanda, Tanzania and DRC. In addition the groups finance costs also increased over 300 percent due to interest cost of UAP corporate bond and the group’s property development,” the management said.
The Group and Old Mutual combined their businesses to form UAP-Old Mutual management following the takeover of its business by Old Mutual.
The combined business of UAP Holdings and Old Mutual Kenya will be listed at the Nairobi Securities Exchange (NSE) once the ongoing integration of the two businesses is complete.
Old Mutual initially acquired 23.33 percent stake in UAP held by Centum Investment Company and Industrialist Chris Kirubi.
READ: Why I sold my stake in UAP Holdings
The firm also bought 37.3 percent shareholding from private equity firms including Abraaj Group, AfricInvest and Swedfund.
Former UAP Group Managing Director Dominic Kiarie quit after the UAP and Old Mutual Group merger.
Meanwhile Uchumi Supermarkets has warned that its 2015 full year profits will decline by about 25 percent attributing to what the management termed as ‘challenges of working capital’.
The retail chain halted its expansion plans after noting that the expansion was conducted without internal capacity or funding.
In the last two weeks the board has managed to poach Naivas Supermarkets Retail Business Executive Willy King’ara to be the new Chief Operating Officer and Equity Banks Chief Operating Officer Julius Kipngetich to be the new CEO.
READ: Kipngetich leaves equity to head struggling Uchumi
“A comprehensive revamp of Governance as well as processes and procedures has started and we have already seen a change in our stores with increased customer footfall and revenue,” the Uchumi management said.
Read more here >> Capital Business
>>> Airtel names new Enterprise and Wholesale Business Director
Until his appointment, Muteti has been the General Manager in charge of Airtel’s MVNO Business & Multi-Brand Strategy and yuMobile Business/CFM BUSINESS
Until his appointment, Muteti has been the General Manager in charge of Airtel’s MVNO Business & Multi-Brand Strategy and yuMobile Business. He has spearheaded the launch of the first ever MVNO in the Kenyan market and the region, Equitel, and in April 2015 led Airtel Kenya in winning the prestigious ‘Best Wholesale Operator’ global award at the MVNO World Congress in Nice, France.
Muteti joined Airtel Kenya from Airtel Africa where he had been the Group Head of Corporate Business, Global Accounts and Strategic Partnerships across Airtel’s 17 operations in Sub Saharan Africa. Prior to joining Airtel Africa, Muteti was a Brand & Channels Manager at AccessKenya Group – an Internet Solutions (SA) Company.
In his new and expanded role, Muteti will be responsible for three business portfolios – Enterprise Business Unit, MVNO Business and yUMobile Business. A business leader with over 13 years commercial experience locally and Pan Africa in Telecoms, Bernard’s specialties include Business Strategy, Sales Strategies & Management, Marketing & Brand, Strategic Partnerships and Customer Service Operations with a strong background in Business Markets.
Muteti holds a degree in Marketing from the University of Nairobi, Executive and Leadership trainings from among others University of Pretoria – SA and the prestigious Indian Institute of Management, Ahmedabad – IIMA, and is a fluent French speaker.
While confirming his appointment, Airtel Kenya chief executive officer Adil El Youssefi said; “We are delighted to have Bernard in our management team and we are confident that his wealth of expertise locally and globally will be very valuable in driving the Enterprise Business Division and delivering consistent growth in the business market in addition to his existing responsibilities of Managing our MVNO and yuMobile businesses.”
Airtel names new Enterprise and Wholesale Business Director
Airtel names new Enterprise and Wholesale Business Director
Until his appointment, Muteti has been the General Manager in charge of Airtel’s MVNO Business & Multi-Brand Strategy and yuMobile Business/CFM BUSINESS
Until his appointment, Muteti has been the General Manager in charge of Airtel’s MVNO Business & Multi-Brand Strategy and yuMobile Business. He has spearheaded the launch of the first ever MVNO in the Kenyan market and the region, Equitel, and in April 2015 led Airtel Kenya in winning the prestigious ‘Best Wholesale Operator’ global award at the MVNO World Congress in Nice, France.
Muteti joined Airtel Kenya from Airtel Africa where he had been the Group Head of Corporate Business, Global Accounts and Strategic Partnerships across Airtel’s 17 operations in Sub Saharan Africa. Prior to joining Airtel Africa, Muteti was a Brand & Channels Manager at AccessKenya Group – an Internet Solutions (SA) Company.
In his new and expanded role, Muteti will be responsible for three business portfolios – Enterprise Business Unit, MVNO Business and yUMobile Business. A business leader with over 13 years commercial experience locally and Pan Africa in Telecoms, Bernard’s specialties include Business Strategy, Sales Strategies & Management, Marketing & Brand, Strategic Partnerships and Customer Service Operations with a strong background in Business Markets.
Muteti holds a degree in Marketing from the University of Nairobi, Executive and Leadership trainings from among others University of Pretoria – SA and the prestigious Indian Institute of Management, Ahmedabad – IIMA, and is a fluent French speaker.
While confirming his appointment, Airtel Kenya chief executive officer Adil El Youssefi said; “We are delighted to have Bernard in our management team and we are confident that his wealth of expertise locally and globally will be very valuable in driving the Enterprise Business Division and delivering consistent growth in the business market in addition to his existing responsibilities of Managing our MVNO and yuMobile businesses.”
Read more here >> Capital Business
News24.co.ke | Roma sign Vainqueur from Dynamo Moscow
Roma have signed French midfielder William Vainqueur from Dynamo Moscow on a permanent deal, the Serie A club announced.
Read More here >> News24
Read More here >> News24
News24.co.ke | Real Madrid extend Casemiro deal
Brazilian midfielder Casemiro has extended his contract with Real Madrid until 2021, the Spanish giants confirmed.
Read More here >> News24
Read More here >> News24
News24.co.ke | Effenberg doubts Ribery’s Bayern return
Ex-Germany international and Bayern Munich captain Stefan Effenberg doubts veteran French winger Franck Ribery can return to fitness from the ankle injury which has sidelined him since March.
Read More here >> News24
Read More here >> News24
News24.co.ke | Aussie 'keeper Ryan to undergo knee surgery
Valencia and Australia goalkeeper Mathew Ryan will have surgery on a meniscus injury in his right knee, the Spanish club have announced.
Read More here >> News24
Read More here >> News24
KATO to create 4 county tour operator hubs
Speaking during the Kenya Tourism Federation (KTF) single tourist visa awareness programme in Kisumu, KATO Chief Executive Fred Kaigua says that the hubs will be in Kisumu, Nakuru, Nanyuki and Mombasa/FILE
Speaking during the Kenya Tourism Federation (KTF) single tourist visa awareness programme in Kisumu, KATO Chief Executive Fred Kaigua says that the hubs will be in Kisumu, Nakuru, Nanyuki and Mombasa.
Kaigua explained that tour operations at the county level brought both challenges and opportunities pointing out that they cannot set up 47 tour operation branches citing that some counties have very few tour operators to sustain a branch.
“We have identified Kisumu hub to serve the western circuit, Nakuru to serve the entire Rift Valley, Nanyuki to serve the Mt Kenya region and Mombasa to serve the coastal region. The hubs will cover the major regions in the country before being devolved,” Kaigua said.
On his part, Kenya Association of Hotel Keepers and Caterers CEO Mike Macharia says devolution is a key agenda in tourism advocacy.
Macharia announced that already, six counties in the North Rift have agreed to work together as a regional tourism block.
KTF has embarked on a massive sensitisation and awareness campaign on the use of National Identification (NID) and the Single Tourism Visa (STV) for travel across the East Africa Community member countries.
This initiative follows a research report that was released in June that indicated limited and poor information availability on STV for travellers and immigration officials.
The survey which was commissioned by KTF in partnership with Trademark East Africa revealed that Information availability on the Single Tourist Visa and use of National showed a response range of between very poor to just average with only 25 percent of travellers and less than 15 percent of immigration officials rating the current information as good.
“It’s also of concern to us that the current STV processing procedure has been rated as very poor by travellers and therefore the need to review and advise on necessary improvement,” said Kenya Tourism Federation Ag CEO Susan Ongalo.
Regarding the use of National Identity Cards to cross borders, the report indicated there is low level awareness with a significant proportion of 17 percent or eight out of 48 of immigration officials not being aware on the use of National IDs.
The initiative is expected to ensure the three countries have a significant share of the registered 50 million tourists who visit the continent annually; as well as stir cross border economic and tourism growth.
Read more here >> Capital Business
>>> KATO to create 4 county tour operator hubs
Speaking during the Kenya Tourism Federation (KTF) single tourist visa awareness programme in Kisumu, KATO Chief Executive Fred Kaigua says that the hubs will be in Kisumu, Nakuru, Nanyuki and Mombasa/FILE
Speaking during the Kenya Tourism Federation (KTF) single tourist visa awareness programme in Kisumu, KATO Chief Executive Fred Kaigua says that the hubs will be in Kisumu, Nakuru, Nanyuki and Mombasa.
Kaigua explained that tour operations at the county level brought both challenges and opportunities pointing out that they cannot set up 47 tour operation branches citing that some counties have very few tour operators to sustain a branch.
“We have identified Kisumu hub to serve the western circuit, Nakuru to serve the entire Rift Valley, Nanyuki to serve the Mt Kenya region and Mombasa to serve the coastal region. The hubs will cover the major regions in the country before being devolved,” Kaigua said.
On his part, Kenya Association of Hotel Keepers and Caterers CEO Mike Macharia says devolution is a key agenda in tourism advocacy.
Macharia announced that already, six counties in the North Rift have agreed to work together as a regional tourism block.
KTF has embarked on a massive sensitisation and awareness campaign on the use of National Identification (NID) and the Single Tourism Visa (STV) for travel across the East Africa Community member countries.
This initiative follows a research report that was released in June that indicated limited and poor information availability on STV for travellers and immigration officials.
The survey which was commissioned by KTF in partnership with Trademark East Africa revealed that Information availability on the Single Tourist Visa and use of National showed a response range of between very poor to just average with only 25 percent of travellers and less than 15 percent of immigration officials rating the current information as good.
“It’s also of concern to us that the current STV processing procedure has been rated as very poor by travellers and therefore the need to review and advise on necessary improvement,” said Kenya Tourism Federation Ag CEO Susan Ongalo.
Regarding the use of National Identity Cards to cross borders, the report indicated there is low level awareness with a significant proportion of 17 percent or eight out of 48 of immigration officials not being aware on the use of National IDs.
The initiative is expected to ensure the three countries have a significant share of the registered 50 million tourists who visit the continent annually; as well as stir cross border economic and tourism growth.
KATO to create 4 county tour operator hubs
News24.co.ke | Real Madrid extend Casemiro deal
Brazilian midfielder Casemiro has extended his contract with Real Madrid until 2021, the Spanish giants confirmed.
Read More here >> News24
Read More here >> News24
News24.co.ke | Monaco's Moutinho out of Portugal squad for Euro qualifier
Monaco midfielder Joao Moutinho has withdrawn from the Portugal squad for a friendly against France and a Euro 2016 qualifier against Albania next week, the Portuguese Football Federation announced.
Read More here >> News24
Read More here >> News24
Why hosting WTO is such a big deal for Kenya
But according to Secretary-General of the United Nations Conference on Trade and Development (UNCTAD) Mukhisa Kituyi, hosting WTO in Nairobi is still a big deal/FILE
The government has assured that all is set for the conference which is expected to take place December 15 to 18, this year.
“We are ready for it even if the conference starts next week,” said Foreign Affairs Cabinet Secretary Amina Mohamed on Monday.
Popularity of GES was greatly due to the summit being hosted by US President Barack Obama. But according to Secretary-General of the United Nations Conference on Trade and Development (UNCTAD) Mukhisa Kituyi, hosting WTO in Nairobi is still a big deal. Reasons?
A critical global decision making meeting
It is very prestigious for any country to be the host of a meeting that makes decisions which will govern the countries, not one year, but two years. It is a major decision making meeting that makes rules which govern all countries that are members of WTO on international trade as well as the way the World trade goes even if you are not a member of WTO. So this is like a ‘ritual’ of making rules to rule the World.
Kenya becomes first African nation to host WTO
For the first time since the formation of the organisation (1995), an African country is hosting the ministerial meeting. It is not only prestigious but it gives you a bull’s eye opportunity to control a process at a critical time for the Doha Round. The WTO is attempting to complete negotiations on the Doha Development Round, which was launched in 2001 with an explicit focus on developing countries.
Nairobi will remain in the books of history, if key decisions are passed.
Many countries get their names engraved in the books of history, if a major initiative starts in their land. For example, since 2001, the World talks of Doha Round negotiations. You know, Doha the little capital of Qatar get the prominence that there was a promise that the trade rules would be disciplined to serve developing countries.
If in Nairobi we can start with new ambitious program, relevant to Africa’s future interest, we will call it Nairobi Round. It means that in the next decade or so, we will be referring to the Nairobi agenda as the Nairobi round negotiations. It is a brand name; a branding exercise that the world uses without investing anything in it.
Global recognition
Just like GES, the World Trade Organisation meet is going to put Kenya on global scale considering we are the first to host this conference in Africa. Nairobi will be hosting close to 5,000 people as delegates and this plays as a major tourism boost, I mean a whole conference tourism. Hosting these people also exposes a country in terms of what it is able to do, to the World. It will roll back the perception of Kenya as a hotbed of terrorism and show that we are a hotbed of hospitality.
Kenya won the bid to host the 10th conference scheduled after member countries of the WTO unanimously made the decision following intense lobbying by the Ministry of Foreign Affairs and International Trade led by the Cabinet Secretary.
Read more here >> Capital Business
Overall inflation in August drops to 5.84 percent
According to Kenya National Bureau of Statistics (KNBS), the food and non-alcoholic drinks’ index, for instance, decreased by 0.26 percent between July and August 2015/FILE
According to Kenya National Bureau of Statistics (KNBS), the food and non-alcoholic drinks’ index, for instance, decreased by 0.26 percent between July and August 2015.
For instance, two kilograms of wheat flour is selling at Sh130.93 this month while it sold at Sh135.02 during the same period last year.
Two kilograms of sifted maize flour on the other hand is selling at Sh115.13 this month while it sold at Sh116.94 in August last year.
“The decrease in the index is accounted for by favourable weather conditions in recent months which caused a decrease in prices of several food items,” says an inflation review by KNBS.
However, some food products have recorded an increase in their prices.
For instance, tomatoes are now selling at Sh107.53 while they were selling at Sh101.45 a year ago. Other products that have witnessed increased inflation include a kilogram of sukuma wiki which was selling at Sh30.44 in August 2014 but is now selling at Sh37.13.
During the review period, housing, water, electricity, gas and other fuels’ index increased by 0.76 percent.
According to KNBS, this was mainly attributed net cost increases in respect of cooking fuels and other household utilities.
“The cost of electricity consumption for instance, surged upwards due to increases in both fuel cost adjustment and foreign exchange charges per KWh of electricity consumed,” reads the review.
The price of one litre of kerosene for instance is Sh58.94 while it was selling at Sh83.97 last year in August.
On the other hand, diesel is selling at Sh84.30 this month while it was selling at Sh105.45 during the same month under review last year.
Despite notable fall in the cost of diesel, the transport index increased by 1.42 percent over the same period. This was mainly due to continued rise in the cost of petrol, fares and other transport costs.
Read more here >> Capital Business
>>> Why hosting WTO is such a big deal for Kenya
But according to Secretary-General of the United Nations Conference on Trade and Development (UNCTAD) Mukhisa Kituyi, hosting WTO in Nairobi is still a big deal/FILE
The government has assured that all is set for the conference which is expected to take place December 15 to 18, this year.
“We are ready for it even if the conference starts next week,” said Foreign Affairs Cabinet Secretary Amina Mohamed on Monday.
Popularity of GES was greatly due to the summit being hosted by US President Barack Obama. But according to Secretary-General of the United Nations Conference on Trade and Development (UNCTAD) Mukhisa Kituyi, hosting WTO in Nairobi is still a big deal. Reasons?
A critical global decision making meeting
It is very prestigious for any country to be the host of a meeting that makes decisions which will govern the countries, not one year, but two years. It is a major decision making meeting that makes rules which govern all countries that are members of WTO on international trade as well as the way the World trade goes even if you are not a member of WTO. So this is like a ‘ritual’ of making rules to rule the World.
Kenya becomes first African nation to host WTO
For the first time since the formation of the organisation (1995), an African country is hosting the ministerial meeting. It is not only prestigious but it gives you a bull’s eye opportunity to control a process at a critical time for the Doha Round. The WTO is attempting to complete negotiations on the Doha Development Round, which was launched in 2001 with an explicit focus on developing countries.
Nairobi will remain in the books of history, if key decisions are passed.
Many countries get their names engraved in the books of history, if a major initiative starts in their land. For example, since 2001, the World talks of Doha Round negotiations. You know, Doha the little capital of Qatar get the prominence that there was a promise that the trade rules would be disciplined to serve developing countries.
If in Nairobi we can start with new ambitious program, relevant to Africa’s future interest, we will call it Nairobi Round. It means that in the next decade or so, we will be referring to the Nairobi agenda as the Nairobi round negotiations. It is a brand name; a branding exercise that the world uses without investing anything in it.
Global recognition
Just like GES, the World Trade Organisation meet is going to put Kenya on global scale considering we are the first to host this conference in Africa. Nairobi will be hosting close to 5,000 people as delegates and this plays as a major tourism boost, I mean a whole conference tourism. Hosting these people also exposes a country in terms of what it is able to do, to the World. It will roll back the perception of Kenya as a hotbed of terrorism and show that we are a hotbed of hospitality.
Kenya won the bid to host the 10th conference scheduled after member countries of the WTO unanimously made the decision following intense lobbying by the Ministry of Foreign Affairs and International Trade led by the Cabinet Secretary.
Why hosting WTO is such a big deal for Kenya
>>> Overall inflation in August drops to 5.84 percent
According to Kenya National Bureau of Statistics (KNBS), the food and non-alcoholic drinks’ index, for instance, decreased by 0.26 percent between July and August 2015/FILE
According to Kenya National Bureau of Statistics (KNBS), the food and non-alcoholic drinks’ index, for instance, decreased by 0.26 percent between July and August 2015.
For instance, two kilograms of wheat flour is selling at Sh130.93 this month while it sold at Sh135.02 during the same period last year.
Two kilograms of sifted maize flour on the other hand is selling at Sh115.13 this month while it sold at Sh116.94 in August last year.
“The decrease in the index is accounted for by favourable weather conditions in recent months which caused a decrease in prices of several food items,” says an inflation review by KNBS.
However, some food products have recorded an increase in their prices.
For instance, tomatoes are now selling at Sh107.53 while they were selling at Sh101.45 a year ago. Other products that have witnessed increased inflation include a kilogram of sukuma wiki which was selling at Sh30.44 in August 2014 but is now selling at Sh37.13.
During the review period, housing, water, electricity, gas and other fuels’ index increased by 0.76 percent.
According to KNBS, this was mainly attributed net cost increases in respect of cooking fuels and other household utilities.
“The cost of electricity consumption for instance, surged upwards due to increases in both fuel cost adjustment and foreign exchange charges per KWh of electricity consumed,” reads the review.
The price of one litre of kerosene for instance is Sh58.94 while it was selling at Sh83.97 last year in August.
On the other hand, diesel is selling at Sh84.30 this month while it was selling at Sh105.45 during the same month under review last year.
Despite notable fall in the cost of diesel, the transport index increased by 1.42 percent over the same period. This was mainly due to continued rise in the cost of petrol, fares and other transport costs.
Overall inflation in August drops to 5.84 percent
Standard Group posts 90pc H1 profit drop to Sh21mn
The management has faulted the digital migration for the decline/FILE
The management has faulted the digital migration for the decline.
The media group’s revenue dropped by 7 percent to Sh2.2 billion from Sh2.37 billion same period last year.
Print advertising business dropped marginally by 4 percent compared to the same period last year, while the television segment declined by 27 percent to post Sh275 million against 379 million recorded the first half of 2014.
The radio business however posted 110 percent rise while digital revenue expanded by 57 percent.
Direct costs of production reduced by 25 percent to Sh428 million down from Sh567 million in the first half of 2014 while overheads increased by 13 percent from Sh1.1 billion to Sh1.26 billion owing to investments in business automation.
The board of directors does not recommend an interim dividend in the first half of the year 2015.
“The board is optimistic barring unforeseen factors that the group will record improved performance in the second half of the year, once the benefits of the reorganization and automation exercises start tricking in,” the management noted.
The group has issued a profit warning for the full year ending December 2015, anticipating 2015 full year earnings to be at least 25 percent lower than 2014 earnings.
READ: Standard Group issues profit warning for 2015 FY
Meanwhile, economic experts are anticipating tough times for listed companies as well as shares and bonds for the reminder of the year owing to the United States increasing its interest rates that has seen foreign investors invest back in their markets, shying away from emerging markets.
READ: Expert predicts tough times for listed companies
Pan Africa Asset Management Senior Portfolio Manager Kevin Kangogo says equities and bonds are getting a beating from sell-off rates as most foreign investment companies that have been placing their money in emerging market economies in Africa opt to invest back to their markets.
Read more here >> Capital Business
>>> Standard Group posts 90pc H1 profit drop to Sh21mn
The management has faulted the digital migration for the decline/FILE
The management has faulted the digital migration for the decline.
The media group’s revenue dropped by 7 percent to Sh2.2 billion from Sh2.37 billion same period last year.
Print advertising business dropped marginally by 4 percent compared to the same period last year, while the television segment declined by 27 percent to post Sh275 million against 379 million recorded the first half of 2014.
The radio business however posted 110 percent rise while digital revenue expanded by 57 percent.
Direct costs of production reduced by 25 percent to Sh428 million down from Sh567 million in the first half of 2014 while overheads increased by 13 percent from Sh1.1 billion to Sh1.26 billion owing to investments in business automation.
The board of directors does not recommend an interim dividend in the first half of the year 2015.
“The board is optimistic barring unforeseen factors that the group will record improved performance in the second half of the year, once the benefits of the reorganization and automation exercises start tricking in,” the management noted.
The group has issued a profit warning for the full year ending December 2015, anticipating 2015 full year earnings to be at least 25 percent lower than 2014 earnings.
READ: Standard Group issues profit warning for 2015 FY
Meanwhile, economic experts are anticipating tough times for listed companies as well as shares and bonds for the reminder of the year owing to the United States increasing its interest rates that has seen foreign investors invest back in their markets, shying away from emerging markets.
READ: Expert predicts tough times for listed companies
Pan Africa Asset Management Senior Portfolio Manager Kevin Kangogo says equities and bonds are getting a beating from sell-off rates as most foreign investment companies that have been placing their money in emerging market economies in Africa opt to invest back to their markets.
Standard Group posts 90pc H1 profit drop to Sh21mn
News24.co.ke | Court bid to bar Springboks from World Cup
A virtually unknown South African political party has made an urgent court bid to try and block the Springboks from flying to England next month for the Rugby World Cup, arguing the squad has too many white players.
Read More here >> News24
Read More here >> News24
News24.co.ke | Monaco striker Martial set to join Manchester United
Monaco forward Anthony Martial is poised to join Manchester United after being allowed to leave the France training camp to sign his contract on deadline day, the French federation said on Monday.
Read More here >> News24
Read More here >> News24
News24.co.ke | Mourinho aims dig at Chelsea performance and spirit
Jose Mourinho blamed an under-performing handful of his multi-millionaire Chelsea players and a bad refereeing decision after suffering the second home defeat of his 200-match Premier League career.
Read More here >> News24
Read More here >> News24
The most important trait for an innovator: Bright Simons #TheScoop
Bright Simons is a technology innovator, development activist and social entrepreneur.
Simons believes innovation has the power to transform Africa. He is President of the mPedigree Network, a system that empowers consumers to instantly verify with a free text message whether their medicines are safe and not counterfeit.
Prior, he was Director of Research at the IMANI Centre for Policy and Education in Ghana, where he helped steer the organization’s award-winning research activities. Bright is a Member of the World Economic Forum’s Network of Global Agenda Councils and Technology Pioneers communities.
He is also an Ashoka Fellow, TED Fellow, Salzburg Global Fellow, Tech Museum Laureate and a Brain Trust member of the Evian Group at IMD. In 2010, he was conferred with an Archbishop Desmond Tutu Award by the African Leadership Institute. In 2013, he was named to the Advisory Board of IC Publications, a leading Pan-African and Afro-Diaporan publisher.
Simons believes innovation has the power to transform Africa and says there are certain traits innovators in Africa should possess.
Read more here >> Capital Business
>>> The most important trait for an innovator: Bright Simons #TheScoop
Bright Simons is a technology innovator, development activist and social entrepreneur.
Simons believes innovation has the power to transform Africa. He is President of the mPedigree Network, a system that empowers consumers to instantly verify with a free text message whether their medicines are safe and not counterfeit.
Prior, he was Director of Research at the IMANI Centre for Policy and Education in Ghana, where he helped steer the organization’s award-winning research activities. Bright is a Member of the World Economic Forum’s Network of Global Agenda Councils and Technology Pioneers communities.
He is also an Ashoka Fellow, TED Fellow, Salzburg Global Fellow, Tech Museum Laureate and a Brain Trust member of the Evian Group at IMD. In 2010, he was conferred with an Archbishop Desmond Tutu Award by the African Leadership Institute. In 2013, he was named to the Advisory Board of IC Publications, a leading Pan-African and Afro-Diaporan publisher.
Simons believes innovation has the power to transform Africa and says there are certain traits innovators in Africa should possess.
The most important trait for an innovator: Bright Simons #TheScoop
News24.co.ke | Goal-shy Arsenal continue to stutter
Touted by many as title challengers before the season Arsenal have failed to set the Premier League alight and it is their goal-shy attack rather than defensive vulnerability which has highlighted their underwhelming start.
Read More here >> News24
Read More here >> News24
News24.co.ke | Captain urges Southampton not to sell any more players
Southampton should not let any players leave before the transfer window closes on Tuesday, the Premier League club's captain Jose Fonte has said.
Read More here >> News24
Read More here >> News24
When to quit your group motor insurance provider #InsuranceKenya
Quitting a motor insurance provider can be like getting a divorce. Surprisingly, the same things that make many couples get divorced are the same ones that present warning signs that you need to quit your group motor insurance provider. Some of the often listed reasons by couples who are seeking divorce include poor communication, money, and infidelity. Here is how they factor into your relationship with your group auto insurance provider.
Communication Problems
Communication problems can end any relationship. Large insurance companies in kenya with large portfolios can find themselves with the same challenges that afflict large families. Some members will get little or no attention, and the situation usually gets worse by the day. If you feel that your insurance company is ignoring you deliberately or otherwise, it may be time to end the relationship. Telltale signs of communication problems include failure to respond to your correspondence, delays in responding to your inquiries, or shallow responses that do not address your needs. You may be able to spot a company that has a problem keeping the discussions going when you first meet their sales representatives. Do they follow up on discussions? Do they wait for you to get back? When was the last time anyone from the company communicated to you in the last year if it was not about premium payments? All these facts should guide your decision regarding whether you are a special child, or the invisible family member.
Related: 4 Things Insurance Companies Don’t want you to Know about Group Motor Insurance
Money Issues
Money is a sticking point when it comes to relationships. People have different philosophies regarding money, and so do companies. Some people get into relationships for financial security. This in itself is neither right nor wrong. However, when a selfish attitude accompanies it, then you have the makings of a divorce. When it comes to insurance, you are better off with a company that actually shows interest in your needs, rather than interest only in your money. Is the company keen on making sure you understand what you are buying? Does the motor insurance company take time to explain the implications of what you are leaving out in their policies? Can you sense a genuine interest in covering you from risk, or are you only serving to make the insurance company profitable? Any dissatisfaction that starts with money is likely to end up in a divorce.
Related: What to Consider before joining Your Company’s Car Insurance Scheme
Infidelity
Infidelity seems like a strong word when it comes to insurance. However, it is possible to feel cheated by an insurance company that is insincere in how it runs its affairs. For instance, if the motor insurance company set for you a certain goal as a condition for getting a specified discount, that shouldn’t change. You organization may have been seeking a certain premium rate for your employees, but the motor insurance company said you must have a certain number of policies for you to qualify. Whether verbal or written, the company should honor its word on the issue when you attain this goal. If you find that your insurance company keeps changing its policy on issues in ways that make it harder for you to access affordable premiums for you employees, then maybe the relationship isn’t worth having. rom
Get more insurance insights from InsureAfrika
Read more here >> Capital Business
>>> When to quit your group motor insurance provider #InsuranceKenya
Quitting a motor insurance provider can be like getting a divorce. Surprisingly, the same things that make many couples get divorced are the same ones that present warning signs that you need to quit your group motor insurance provider. Some of the often listed reasons by couples who are seeking divorce include poor communication, money, and infidelity. Here is how they factor into your relationship with your group auto insurance provider.
Communication Problems
Communication problems can end any relationship. Large insurance companies in kenya with large portfolios can find themselves with the same challenges that afflict large families. Some members will get little or no attention, and the situation usually gets worse by the day. If you feel that your insurance company is ignoring you deliberately or otherwise, it may be time to end the relationship. Telltale signs of communication problems include failure to respond to your correspondence, delays in responding to your inquiries, or shallow responses that do not address your needs. You may be able to spot a company that has a problem keeping the discussions going when you first meet their sales representatives. Do they follow up on discussions? Do they wait for you to get back? When was the last time anyone from the company communicated to you in the last year if it was not about premium payments? All these facts should guide your decision regarding whether you are a special child, or the invisible family member.
Related: 4 Things Insurance Companies Don’t want you to Know about Group Motor Insurance
Money Issues
Money is a sticking point when it comes to relationships. People have different philosophies regarding money, and so do companies. Some people get into relationships for financial security. This in itself is neither right nor wrong. However, when a selfish attitude accompanies it, then you have the makings of a divorce. When it comes to insurance, you are better off with a company that actually shows interest in your needs, rather than interest only in your money. Is the company keen on making sure you understand what you are buying? Does the motor insurance company take time to explain the implications of what you are leaving out in their policies? Can you sense a genuine interest in covering you from risk, or are you only serving to make the insurance company profitable? Any dissatisfaction that starts with money is likely to end up in a divorce.
Related: What to Consider before joining Your Company’s Car Insurance Scheme
Infidelity
Infidelity seems like a strong word when it comes to insurance. However, it is possible to feel cheated by an insurance company that is insincere in how it runs its affairs. For instance, if the motor insurance company set for you a certain goal as a condition for getting a specified discount, that shouldn’t change. You organization may have been seeking a certain premium rate for your employees, but the motor insurance company said you must have a certain number of policies for you to qualify. Whether verbal or written, the company should honor its word on the issue when you attain this goal. If you find that your insurance company keeps changing its policy on issues in ways that make it harder for you to access affordable premiums for you employees, then maybe the relationship isn’t worth having. rom
Get more insurance insights from InsureAfrika
When to quit your group motor insurance provider #InsuranceKenya
Sunday, August 30, 2015
News24.co.ke | Van Gaal rules out transfer remedy for United
Manchester United manager Louis van Gaal said that he would not jump into the transfer market to solve his side's goal-scoring problems following their 2-1 defeat at Swansea City.
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News24.co.ke | Nigeria wins African basketball title, gets Olympic spot
Nigeria wins first African basketball championship, clinches 2016 Olympic spot.
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News24.co.ke | Kiprop hat-trick puts Kenya on top in Beijing
Asbel Kiprop produced a trademark sprint finish to win a third straight 1,500 metres gold and ensure Kenya topped the medals table at successive world championships after the final night of action on Sunday.
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News24.co.ke | US finishes behind Kenya, Jamaica with 6 gold medals
Both Kenya and Jamaica won seven gold medals during the just concluded IAAF world championships in beijing, one more than the Americans.
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Saturday, August 29, 2015
News24.co.ke | West Ham stun Liverpool
Mark Noble scored and was later sent off as West Ham stunned Liverpool in a Premier League game that both teams finished with 10 men.
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News24.co.ke | Arsenal sink 10-man Newcastle
Arsenal have laboured to their second win of the season with a highly-charged victory against 10-man Newcastle United at St James' Park.
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News24.co.ke | Palace shock Chelsea at Stamford Bridge
Chelsea manager Jose Mourinho suffered only his second Premier League defeat at Stamford Bridge as Crystal Palace clinched a shock win.
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News24.co.ke | Arzamasova stuns Sum to win 800m world title
Marina Arzamasova of Belarus stunned defending champion Eunice Sum to win the women's 800 metres world title in a thriller on Saturday.
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News24.co.ke | Lightning Bolt strikes again as Farah, Eaton shine
Usain Bolt's third sprint gold and Mo Farah's unique "triple double" shared the spotlight with Ashton Eaton as the American thrilled the world championships with a record-breaking decathlon win.
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Friday, August 28, 2015
News24.co.ke | Kiprop says under pressure to deliver gold for Kenya in Beijing
Tactics will be crucial for World 1,500m champion Asbel Kiprop as he defends his title at the Bird's Nest Stadium in Beijing on Sunday.
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News24.co.ke | Kiyeng relishes her new world champion status in steeplechase
There is moment when most people' s lives could have followed a very different path, and World 3,000m steeplechase champion Hyvin Jepkemoi Kiyeng's victory in Beijing confirmed just that.
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News24.co.ke | Illness woes for Villa ahead of Sunderland clash
Aston Villa's preparations for the visit of Sunderland in the Premier League have been disrupted by illness, manager Tim Sherwood said.
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News24.co.ke | Stones focussed on Everton
Everton defender John Stones, who has been the subject of intense speculation of a summer move to champions Chelsea, is ready to play in Saturday's Premier League game against Tottenham Hotspur.
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News24.co.ke | Spurs sign South Korea's Son
Tottenham Hotspur have signed South Korea forward Son Heung-min from Germans Bayer Leverkusen, the English Premier League club announced Friday.
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Expert predicts tough times for listed companies
Speaking to Capital FM Business, Kangogo says the US Federal Reserve has plans on increasing the interest rates in September triggering a capital flight from emerging markets back to the US/FILE
Pan Africa Asset Management Senior Portfolio Manager Kevin Kangogo says equities and bonds are getting a beating from sell-off rates as most foreign investment companies that have been placing their money in emerging market economies in Africa opt to invest back to their markets.
Speaking to Capital FM Business, Kangogo says the US Federal Reserve has plans on increasing the interest rates in September triggering a capital flight from emerging markets back to the US.
“Over the past two years, the US Federal Reserve has been stimulating their economy by pumping money leading to weak dollar, so most investment companies (hedge funds and investment banks) placed their money in emerging market economies in Africa.”
“Late last year they decided to reverse the process through tapering, hence triggering a capital flight from emerging markets back to the US. When the dollar strengthens, their actual returns will be lower when converted to US dollars from Kenya shillings, hence most foreigners prefer holding dollar assets. Also, weak company performance leads to the sell-off. Same scenario is happening to China, India, Brazil and Europe,” he explained and expects this trend to continue in the remainder of the year.
He says stronger US dollar has affected some listed companies, who have made losses, issued profit warnings or lowered their earnings, with most companies who rely on dollar imports for inputs, and sales are in shillings hit hardest, this includes sectors such as manufacturing and aviation.
“The weakening shilling has led the Treasury to raise rates which is affecting the other sector of the market, Banks. The banks make money out of spreads, hence when the rates rise, the cost of deposit rises faster than the rate of lending rates, hence they end up with expensive deposits and same interest income,” he added.
However, even as the equities and bonds are getting a beating from sell-off and high interest rates Kangogo says cash is performing quite well.
Currently assets that are held in Money Market Funds (MMF) are outperforming both equity and bond funds on the unit trust segments.
He pointed out the other advantage of MMF over fixed deposits in banks is that they adjust quite fast to the environment.
“Two months ago fixed deposits locked at 8 percent are still earning the same rate while a MMF that was earning 8 percent is placing money on more than 10 percent,” he added.
Listed companies on the loss making trend in the period under review include Real estate firm Home Afrika that has made a loss of Sh111 million compared to a net profit of Sh42 million same period last year.
The management attributed the loss to a 60 percent drop in revenue.
British American Investments (Britam) posted a 77 percent decline in its first half net profit to Sh624 million compared to Sh2.7 billion recorded over the same period last year, attributable to a bearish performance of the securities market.
READ: Britam posts 77pc drop in 2015 H1 net profit to Sh624mn
The firm says the performance of the market negatively impacted on the fair value of financial assets. The insurer recorded fair value losses of Sh842.9 million compared to a gain of Sh2.9 billion in the first half of 2014.
Logistics firm Express Kenya is anticipating to make a loss in its 2015 first half period ended June 30, 2015.
The management attributes the loss to the economic downturn that has negatively affected the transport sector.
Standard Group has also issued a profit warning anticipating 2015 full year earnings to be at least 25 percent lower than 2014 earnings.
Read more here >> Capital Business
>>> Expert predicts tough times for listed companies
Speaking to Capital FM Business, Kangogo says the US Federal Reserve has plans on increasing the interest rates in September triggering a capital flight from emerging markets back to the US/FILE
Pan Africa Asset Management Senior Portfolio Manager Kevin Kangogo says equities and bonds are getting a beating from sell-off rates as most foreign investment companies that have been placing their money in emerging market economies in Africa opt to invest back to their markets.
Speaking to Capital FM Business, Kangogo says the US Federal Reserve has plans on increasing the interest rates in September triggering a capital flight from emerging markets back to the US.
“Over the past two years, the US Federal Reserve has been stimulating their economy by pumping money leading to weak dollar, so most investment companies (hedge funds and investment banks) placed their money in emerging market economies in Africa.”
“Late last year they decided to reverse the process through tapering, hence triggering a capital flight from emerging markets back to the US. When the dollar strengthens, their actual returns will be lower when converted to US dollars from Kenya shillings, hence most foreigners prefer holding dollar assets. Also, weak company performance leads to the sell-off. Same scenario is happening to China, India, Brazil and Europe,” he explained and expects this trend to continue in the remainder of the year.
He says stronger US dollar has affected some listed companies, who have made losses, issued profit warnings or lowered their earnings, with most companies who rely on dollar imports for inputs, and sales are in shillings hit hardest, this includes sectors such as manufacturing and aviation.
“The weakening shilling has led the Treasury to raise rates which is affecting the other sector of the market, Banks. The banks make money out of spreads, hence when the rates rise, the cost of deposit rises faster than the rate of lending rates, hence they end up with expensive deposits and same interest income,” he added.
However, even as the equities and bonds are getting a beating from sell-off and high interest rates Kangogo says cash is performing quite well.
Currently assets that are held in Money Market Funds (MMF) are outperforming both equity and bond funds on the unit trust segments.
He pointed out the other advantage of MMF over fixed deposits in banks is that they adjust quite fast to the environment.
“Two months ago fixed deposits locked at 8 percent are still earning the same rate while a MMF that was earning 8 percent is placing money on more than 10 percent,” he added.
Listed companies on the loss making trend in the period under review include Real estate firm Home Afrika that has made a loss of Sh111 million compared to a net profit of Sh42 million same period last year.
The management attributed the loss to a 60 percent drop in revenue.
British American Investments (Britam) posted a 77 percent decline in its first half net profit to Sh624 million compared to Sh2.7 billion recorded over the same period last year, attributable to a bearish performance of the securities market.
READ: Britam posts 77pc drop in 2015 H1 net profit to Sh624mn
The firm says the performance of the market negatively impacted on the fair value of financial assets. The insurer recorded fair value losses of Sh842.9 million compared to a gain of Sh2.9 billion in the first half of 2014.
Logistics firm Express Kenya is anticipating to make a loss in its 2015 first half period ended June 30, 2015.
The management attributes the loss to the economic downturn that has negatively affected the transport sector.
Standard Group has also issued a profit warning anticipating 2015 full year earnings to be at least 25 percent lower than 2014 earnings.
Expert predicts tough times for listed companies
>>> Standard Group issues profit warning for 2015 FY
“The Board of Directors anticipate that the financial results for the year ending 31 December 2015 will be materially affected by adverse market conditions experienced during the year compared to the same period in 2014,” CEO Sam Shollei said.
Specific challenges that adversely affected the listed media company in the first half of the year included business disruptions that resulted from the analogue to digital migration process which resulted to lower viewership and a decline in TV revenues.
“The migration from analogue to digital TV broadcasting negatively impacted viewership due to low penetration of set top boxes (STBs) at the time of migrations,” Shollei said adding that the need to impair analogue television equipment also significantly contributed to a one-off cost for the year.
Further, in-depth review of all old debt resulted in a decision to increase bad-debt provisions due to the low likelihood of the recovering these debts.
The company says it has initiated an organisational restructuring process which has also resulted in one-off reorganisation costs that will have to be expensed in 2015.
“Taking a longer term view automation of the business processes through investments in media solutions as well as an editorial work flow solution will greatly improve efficiency and visibility across all business lines,” Shollei said.
The Standard Group expects future savings to start accruing in 2016 as the organisation benefits from these investments which will support a lean, efficient and highly-motivated workforce.
The media company has also taken measures to optimise the overheads cost structure by eliminating wastage and implementation of stringent procurement process, as well as undertaking strategic investments in order to mitigate the impact of future disruptions to revenues.
Standard Group issues profit warning for 2015 FY
Standard Group issues profit warning for 2015 FY
“The Board of Directors anticipate that the financial results for the year ending 31 December 2015 will be materially affected by adverse market conditions experienced during the year compared to the same period in 2014,” CEO Sam Shollei said.
Specific challenges that adversely affected the listed media company in the first half of the year included business disruptions that resulted from the analogue to digital migration process which resulted to lower viewership and a decline in TV revenues.
“The migration from analogue to digital TV broadcasting negatively impacted viewership due to low penetration of set top boxes (STBs) at the time of migrations,” Shollei said adding that the need to impair analogue television equipment also significantly contributed to a one-off cost for the year.
Further, in-depth review of all old debt resulted in a decision to increase bad-debt provisions due to the low likelihood of the recovering these debts.
The company says it has initiated an organisational restructuring process which has also resulted in one-off reorganisation costs that will have to be expensed in 2015.
“Taking a longer term view automation of the business processes through investments in media solutions as well as an editorial work flow solution will greatly improve efficiency and visibility across all business lines,” Shollei said.
The Standard Group expects future savings to start accruing in 2016 as the organisation benefits from these investments which will support a lean, efficient and highly-motivated workforce.
The media company has also taken measures to optimise the overheads cost structure by eliminating wastage and implementation of stringent procurement process, as well as undertaking strategic investments in order to mitigate the impact of future disruptions to revenues.
Read more here >> Capital Business
Africa uneasy as China turmoil threatens investment boom
China Flag/AFP
JOHANNESBURG, Aug 28- When Chinese company Shanghai Zendai bought 1,600 hectares (4,000 acres) of land outside Johannesburg in 2013, it promised to build the “New York of Africa.”
The sleepy district of Modderfontein would be transformed into a $7.8 billion metropolis with a forest of skyscrapers, 35,000 houses and a sanctuary of green space to rival Central Park.
The planned city became a symbol of China’s seemingly limitless ambition across the African continent.
But as global alarm bells ring over China’s slowing economic growth, future projects on the vast scale of Modderfontein could be under threat.
“It’s like we had a big party and the hangover is going to continue a bit longer than we anticipated,” Dennis Dykes, head economist at South Africa’s Nedbank, told AFP.
“It was unrealistic to believe that China would continue operating at the level it was.”
For the past decade, China gobbled up much of the commodities that Africa produces, overtaking the United States in 2009 to became the continent’s single largest trading parter.
Surging commodity prices helped the sub-Saharan Africa region grow at over four percent annually for two decades.
From power plants in Botswana to diamond mines in Zimbabwe — and a spate of shiny sports stadiums — Africa counted on China for investment, infrastructure and jobs.
Beijing even built the $200 million African Union headquarters in the Ethiopian capital Addis Ababa in 2012 as a gift expressing “friendship to the African people.”
Chinese companies are involved in hydropower projects in Zambia, Gabon and the Democratic Republic of Congo.
China built a huge shopping mall in Zimbabwe’s capital Harare, laid a ring road around Maputo, the capital of Mozambique, and invested billions in Nigeria’s newly refurbished Lagos Kano rail line.
China has also funded coal power stations, roads and schools in Botswana, mines in Namibia, and in Malawi it provided funds for a new parliament, a university, hotels and conference centres.
However, the rapid pace of investment could be at risk as China grapples with weak demand for its goods and a schizophrenic stock market.
– ‘Drunk on China’s growth’ –
Many experts now question the sturdiness of China’s growth and warn of the inevitable damage to those countries who rely on it.
“The first impact is on commodity prices, which directly influences Africa. The second is investment, which will obviously slow down,” said Celeste Fauconnier, Africa analyst at Rand Merchant Bank. “We should be concerned.”
Already, countries are reeling from the Chinese turmoil, with commodity prices falling to a 16-year low, according to the Bloomberg Commodity Index tracking 22 raw materials.
Bureaucrats have had their pay delayed in Nigeria after the price of oil collapsed to less than $50 a barrel and depleted state coffers.
In South Africa, iron ore sales tumbled 36.9 percent since last year and mining companies have announced major layoffs.
“We are worried because China is one of the major consumers,” said Fredson Yamba, a treasury official in Zambia, which derives almost 70 percent of its export earnings from copper.
The China slowdown has exacerbated problems in African countries that depended on high commodity prices to balance their books, with South Africa particularly hard hit.
“It has impacts on our current account balance, it has implications on our trade balance,” said Hugo Pienaar, economist at the University of Stellenbosch Bureau for Economic Research.
“You’ll see it in investment numbers and you’ll see it in employment numbers, and that has spillover effects.”
To keep growing, African economies have to wean themselves off commodities, analysts say.
“As China rebalances, commodity driven economies need to rebalance too,” said Martyn Davis, head of Frontier Advisory, an emerging markets research firm.
“Most sub Saharan African countries have been drunk on China’s growth. The thing they should have been doing 15 years ago is to rapidly diversify their economies and not rely on commodities,” said Davis.
“It’s never too late, but the pressures now are intense.”
Despite the worries, economists say predictions that China will no longer be a major player in Africa are overblown.
“China certainly enjoys a privileged relationship with many African countries and has access to big infrastructure projects,” said Ryan Wibberley, emerging market equity dealer at Investec in Cape Town.
“The general trend of China as infrastructure partner is not going away.”
Instead, China’s activities in Africa are set for a wholesale review to take into account the new global economic outlook.
“We’re in a much lower commodity price regime for the next couple of years,” said Dykes. “I must admit, this has a horrible structural feel to it at the moment.”
Read more here >> Capital Business
>>> Africa uneasy as China turmoil threatens investment boom
China Flag/AFP
JOHANNESBURG, Aug 28- When Chinese company Shanghai Zendai bought 1,600 hectares (4,000 acres) of land outside Johannesburg in 2013, it promised to build the “New York of Africa.”
The sleepy district of Modderfontein would be transformed into a $7.8 billion metropolis with a forest of skyscrapers, 35,000 houses and a sanctuary of green space to rival Central Park.
The planned city became a symbol of China’s seemingly limitless ambition across the African continent.
But as global alarm bells ring over China’s slowing economic growth, future projects on the vast scale of Modderfontein could be under threat.
“It’s like we had a big party and the hangover is going to continue a bit longer than we anticipated,” Dennis Dykes, head economist at South Africa’s Nedbank, told AFP.
“It was unrealistic to believe that China would continue operating at the level it was.”
For the past decade, China gobbled up much of the commodities that Africa produces, overtaking the United States in 2009 to became the continent’s single largest trading parter.
Surging commodity prices helped the sub-Saharan Africa region grow at over four percent annually for two decades.
From power plants in Botswana to diamond mines in Zimbabwe — and a spate of shiny sports stadiums — Africa counted on China for investment, infrastructure and jobs.
Beijing even built the $200 million African Union headquarters in the Ethiopian capital Addis Ababa in 2012 as a gift expressing “friendship to the African people.”
Chinese companies are involved in hydropower projects in Zambia, Gabon and the Democratic Republic of Congo.
China built a huge shopping mall in Zimbabwe’s capital Harare, laid a ring road around Maputo, the capital of Mozambique, and invested billions in Nigeria’s newly refurbished Lagos Kano rail line.
China has also funded coal power stations, roads and schools in Botswana, mines in Namibia, and in Malawi it provided funds for a new parliament, a university, hotels and conference centres.
However, the rapid pace of investment could be at risk as China grapples with weak demand for its goods and a schizophrenic stock market.
– ‘Drunk on China’s growth’ –
Many experts now question the sturdiness of China’s growth and warn of the inevitable damage to those countries who rely on it.
“The first impact is on commodity prices, which directly influences Africa. The second is investment, which will obviously slow down,” said Celeste Fauconnier, Africa analyst at Rand Merchant Bank. “We should be concerned.”
Already, countries are reeling from the Chinese turmoil, with commodity prices falling to a 16-year low, according to the Bloomberg Commodity Index tracking 22 raw materials.
Bureaucrats have had their pay delayed in Nigeria after the price of oil collapsed to less than $50 a barrel and depleted state coffers.
In South Africa, iron ore sales tumbled 36.9 percent since last year and mining companies have announced major layoffs.
“We are worried because China is one of the major consumers,” said Fredson Yamba, a treasury official in Zambia, which derives almost 70 percent of its export earnings from copper.
The China slowdown has exacerbated problems in African countries that depended on high commodity prices to balance their books, with South Africa particularly hard hit.
“It has impacts on our current account balance, it has implications on our trade balance,” said Hugo Pienaar, economist at the University of Stellenbosch Bureau for Economic Research.
“You’ll see it in investment numbers and you’ll see it in employment numbers, and that has spillover effects.”
To keep growing, African economies have to wean themselves off commodities, analysts say.
“As China rebalances, commodity driven economies need to rebalance too,” said Martyn Davis, head of Frontier Advisory, an emerging markets research firm.
“Most sub Saharan African countries have been drunk on China’s growth. The thing they should have been doing 15 years ago is to rapidly diversify their economies and not rely on commodities,” said Davis.
“It’s never too late, but the pressures now are intense.”
Despite the worries, economists say predictions that China will no longer be a major player in Africa are overblown.
“China certainly enjoys a privileged relationship with many African countries and has access to big infrastructure projects,” said Ryan Wibberley, emerging market equity dealer at Investec in Cape Town.
“The general trend of China as infrastructure partner is not going away.”
Instead, China’s activities in Africa are set for a wholesale review to take into account the new global economic outlook.
“We’re in a much lower commodity price regime for the next couple of years,” said Dykes. “I must admit, this has a horrible structural feel to it at the moment.”
Africa uneasy as China turmoil threatens investment boom
Britam posts 77pc drop in 2015 H1 net profit to Sh624mn
The firm says the performance of the market negatively impacted on the fair value of financial assets/file
The firm says the performance of the market negatively impacted on the fair value of financial assets.
The insurer recorded fair value losses of Sh842.9 million compared to a gain of Sh2.9 billion in the first half of 2014.
Gross earned premiums grew by 81.7 percent to Sh10.1 billion up from Sh5.1 billion posted same period last year driven by a 63 percent growth in the general insurance business following the completion of Real Insurance acquisition in the second half of 2014.
Total revenue increased to Sh11 billion up from Sh10 billion posted last year representing a 7.8 percent increase.
The company’s total expenses increased by 38 percent to Sh10.2 billion in the period under review up from Sh7.3 billion mainly attributable to an increase in insurance claims and loss adjustment expenses that went up to Sh5.1 billion up from Sh2.1 billion recorded over the same period last year.
Going forward, management indicated that they plan to increase property to between 20 to 30 percent of its investment portfolio and cut reliance on equities to less than 30 percent.
On its property strategy, Britam Towers is set to be completed in August 2016. In addition, the insurer plans to set up serviced apartments on its 1.6 acre piece of land in Kilimani.
“The group continues to implement its growth and diversification strategy focusing on increased local and regional expansion Information Technology, innovation of products and processes and capacity enhancement,” the firm stated.
The board of directors do not recommend payment of any dividend.
Read more here >> Capital Business
>>> Britam posts 77pc drop in 2015 H1 net profit to Sh624mn
The firm says the performance of the market negatively impacted on the fair value of financial assets/file
The firm says the performance of the market negatively impacted on the fair value of financial assets.
The insurer recorded fair value losses of Sh842.9 million compared to a gain of Sh2.9 billion in the first half of 2014.
Gross earned premiums grew by 81.7 percent to Sh10.1 billion up from Sh5.1 billion posted same period last year driven by a 63 percent growth in the general insurance business following the completion of Real Insurance acquisition in the second half of 2014.
Total revenue increased to Sh11 billion up from Sh10 billion posted last year representing a 7.8 percent increase.
The company’s total expenses increased by 38 percent to Sh10.2 billion in the period under review up from Sh7.3 billion mainly attributable to an increase in insurance claims and loss adjustment expenses that went up to Sh5.1 billion up from Sh2.1 billion recorded over the same period last year.
Going forward, management indicated that they plan to increase property to between 20 to 30 percent of its investment portfolio and cut reliance on equities to less than 30 percent.
On its property strategy, Britam Towers is set to be completed in August 2016. In addition, the insurer plans to set up serviced apartments on its 1.6 acre piece of land in Kilimani.
“The group continues to implement its growth and diversification strategy focusing on increased local and regional expansion Information Technology, innovation of products and processes and capacity enhancement,” the firm stated.
The board of directors do not recommend payment of any dividend.
Britam posts 77pc drop in 2015 H1 net profit to Sh624mn
News24.co.ke | Spurs mourn lost love as West Brom rule out Berahino move
West Bromwich Albion have ruled out the prospect of Saido Berahino leaving the club during the current transfer window, leading Tottenham Hotspur manager Mauricio Pochettino to compare his club's pursuit of the striker to a frustrated love.
Read More here >> News24
Read More here >> News24
News24.co.ke | English Premier League fixtures
Weekend fixtures in the English Premier League.
Read More here >> News24
Read More here >> News24
Asia markets rally after strong US growth figures
Asia stocks staged another rally in early trade on August 28, 2015, taking heart from strong US growth figures to cement a recovery, with Tokyo leading the gains/AFP
SHANGHAI, Aug 28- Asia stocks extended their rally on Friday, taking heart from strong US growth figures to cement a recovery after a torrid week when global markets took fright over China’s gloomy economic outlook.
Tokyo led the gains, with Shanghai and several other markets in tow, and oil prices zoomed higher after the US reported a surprisingly strong new estimate of economic growth in the second quarter.
The latest data, which showed the world’s biggest economy grew at an annual rate of 3.7 percent in the April-June quarter, buoyed markets that have been worried over the prospects for China’s economy, which accounts for some 13 percent of global output.
“We end the week on another positive note, and the craziness we’ve seen over the last couple of weeks seems to be dissipating,” Chris Weston, chief markets strategist at IG Markets, said in a note.
Markets across the world saw recoveries, with the S&P 500 surging to its second straight gain on Wall Street on Thursday, while stock indexes in London and Paris also rose.
In Asia on Friday, Tokyo closed 3.03 percent higher and Shanghai gained 4.82 percent. Seoul, Sydney, and several other Asian markets also rose.
Hong Kong, however, dropped 1.04 percent despite making early gains.
The advances across key Asian bourses first began on Wednesday, when markets — with the exception of Shanghai — began to find their footing. The Chinese market made substantial gains the following day, however, indicating prices have, for the moment, found their floor.
– China mitigating concerns? –
The latest advances come as a relief to investors who at one point saw $8 trillion wiped off global markets in a two-week stock market rout led by fears over the outlook for China.
Beijing has sought to mitigate those concerns in recent days by taking a series of measures, from boosting the amount its massive state pension fund can invest in stocks, cutting interest rates and slashing the amount of money banks need to hold in reserve.
The measures are not only aimed at increasing cash flow in China, but also at reviving confidence that Beijing can steer the economy away from a hard landing and keep global growth on course.
Markets took their lead, however, from the US growth report, which, though it covered only through June, confirmed the economy has not yet been hit much by China’s downturn.
It added to other strong recent data on consumer confidence and durable goods orders.
“The US economy continues to perform on a consistent basis (showing) that its economic recovery is sustainable,” said FXTM chief market analyst Jameel Ahmad.
Concerns in the recent stock market panic focused on the fact that in recent years China has been the main driver of global growth, with Europe in the doldrums and the United States struggling to maintain a recovery.
But Chris Green, an Auckland based strategist at First NZ Capital Ltd., said the figures showed the US economy was in better shape.
“It gave credence to the story that the US economy could be building momentum,” he said.
“We seem to have gained some sort of stability and people are focusing more on the underlying strength of the US economy.”
– Dollar boosted –
The latest data boosted the dollar as well as oil prices on Thursday, but both gave back some of their gains on Friday.
In Tokyo trading on Friday, the dollar touched one-week highs before falling back to 120.85 yen and $1.1301.
US benchmark West Texas Intermediate, meanwhile, fell 44 cents to $42.12 and Brent crude dropped 52 cents to $47.04. Both had gained more than 10 percent the previous day on the economic data.
Eyes were turning toward a central banking symposium that the US Federal Reserve was hosting in Jackson Hole, Wyoming from Thursday to Saturday.
Fed Chair Janet Yellen is not attending, but her deputy, Stanley Fischer, will make keynote remarks on Saturday that could point to whether the central bank believes the global turmoil is severe enough to hold off on a long expected hike in interest rates.
On Wednesday, New York Federal Reserve head William Dudley, seen as close to Yellen and Fischer in his thinking, said that the Chinese turmoil had made the arguments for a rate rise in September “less compelling”.
Gains from upbeat releases in the US were tempered, however, by data in Japan that showed that inflation in the Asian powerhouse fell back to zero in July while household spending dropped for a second straight month.
— Bloomberg News contributed to this report —
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