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South Africa: JSE Suspends Delta Shares ‘In the Interest of Shareholders’

south africa jse suspends delta shares in the interest of shareholders
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Problems are piling up for Delta, which recently uncovered fraud and misappropriation of funds worth R46-million. The JSE has now suspended the company’s shares with immediate effect.

Trading in Delta Property Fund shares was suspended by the JSE on Tuesday, 15 December, adding more woes for a real estate company that has been hit by a multimillion-rand fraud and accounting scandal implicating former company executives.

In a Stock Exchange News Service (SENS) statement, the JSE told Delta shareholders that the company’s shares have been suspended with immediate effect, a decision the bourse has taken “in the interest of shareholders”.

Delta owns a range of office properties that are leased to government departments and entities. Delta listed on the JSE in 2012 with a share price of R9.60 but its shares are now a penny stock, dropping to 35 cents.

The suspension of Delta shares, the JSE said, follows the company’s recent decision to withdraw its annual financial statements for the year to end-February 2020 because they can no longer be relied on by shareholders. Delta’s auditor, BDO, also withdrew its audit opinion for the financial statements.

A forensic investigation into the goings-on at Delta, which was commissioned by…

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Nigeria: Labour Threatens Shipping Companies Over Unfair Practices

nigeria labour threatens shipping companies over unfair practices

Maritime Workers Union of Nigeria, MWUN, have decried alleged unfair Labour practices by shipping companies operating in Nigeria, warning the companies to end perceived anti-Labour policies and practices to avoid the wrath of organized Labour.

At the Union’s National Executive Council, NEC, meeting in Lagos, it’s President-General, Prince Adeyanju Adewale, lamented that the shipping companies had no regard for the welfare of workers and that the Union would no longer tolerate the practice.

According to him, “It is sad to note that the Nigerian Shipping Industry perhaps houses some of the worst employers of Labour across the globe who demand so much from their employees, but pay peanuts as wages. They employ practices and standards that dehumanised their employees and challenge their dignities.

“After several efforts to make them conform with minimum international standards, we had to declare a state of emergency on the Nigerian Shipping Companies, issued a 21-day ultimatum including the intervention of the President of Nigeria Labour Congress, NLC, to force dialogue with the companies.

“We call on the Federal Government to immediately call the shipping companies in Nigeria to order and make them obey the nation’s extant Labour laws especially as they affect minimum wage. A situation where an employee will be forced to remain on one scale for 20 years is not only callous but intolerable and will no longer be acceptable. Even more appalling is their penchant for outsourcing of jobs. We wish to use this medium to put the general public on notice that the Union will no longer tolerate these anti-Labour practices and will not hesitate to declare industrial unrest in the Nigerian Shipping Industry.”

Prince Adewale also called on the Federal Government to dredge the Calabar Ports, saying “We feel confused on the report reaching us which points to the fact that decades after the award of contract for the dredging of the Calabar Ports, nothing has been done till date. This is not only unfair to our members in Calabar Ports who have been denied employment opportunities, but also reducing the level of maritime activities in the area that should stimulate other economic activities among other benefits. We call on the federal government to compel the contractor to site to dredge the ports.

Similarly, statics shows that Lagos Ports, that is Apapa and Tin Can Island Ports receive over 90 percent of import and export cargoes in Nigeria and are under intense pressure with facilities, while the personnel are overstretched. To ease the situation, we call on the Federal Government to immediately expand other ports in the country.

Not only in terms of land space, but in terms of ports operational machinery to bring these ports to function at maximum capacity. We believe that doing this will ease tension in Lagos Ports and ease congestion and gridlock on Apapa-Oshodi Expressway.

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Tanzania: Jatu Enigmatic Bullish Trend Projected to Continue

tanzania jatu enigmatic bullish trend projected to continue

JATU, the newly listed firm, is projected to continue with its bullish trend this week after rallying to a historical price last week.

The agri-industrial firm was listed on Dar es Salaam Stock Exchange (DSE) less than a month ago, but its share climbed from 420/- to close last week at 920/-, a gain of almost 120 per cent since listed. Jatu becomes a second EGM listed firm after Swala Energy to skyrocketing soon after the list-day.

Swala rallied from 500/- when listed to 2,000/- after a couple of weeks. But later it dropped to 500/- and stagnated to date. Zan Securities Chief Executive Officer Raphael Masumbuko said at the weekend that Jatu and CRDB Bank’s performance surged domestic market capitalisation.

“We expect the momentum to continue next week as we envision Jatu, the new counter to continue climbing and block trades to continue,” Mr Masumbuko said in the brokerage firm’s Weekly Market Wrap-ups.

Total market capitalisation recorded a slight increase of 0.08 per cent to 14.85tri/- and domestic market cap followed suit by 0.15 per cent to 9.14tri/-.

The week ending last Friday saw Jatu jumping 29.58 per cent to close at 920/-, while CRDB Bank increased by 2.70 per cent to close at 190/-. Tanzania Securities said in its Weekly Market Blast that Jatu was projected to remain active this week despite analysts to be buffed by what was behind its demand.

“Even though it remains enigmatic to justify Jatu’s demand at the bourse, it is likely that it may remain active for some coming trading sessions,” Tanzania Securities said. Orbit Securities said in its Weekly Market Synopsis that the gaining of Jatu and CRDB Bank was enough to offset the impact of DSE share drop from 890/- to 880/- to bourse indices.

“Tanzania Share Index (TSI) has been consistently rising in the past few weeks, mostly as a result of a push from CRDB Bank and the newly listed Jatu which has more than doubled in less than a month,” Orbit said.

However, despite Jatu and CRDB Bank to post positive price performance, the equities market recorded a turnover drop by 35per cent to 874.49m/- from 1.34bn/-. “The equity market recorded positive performance in terms of price increase despite a decrease in turnover,” Mr Masumbuko said.

TBL continued moving the market albeit with a small margin. The counter recorded 30.84 per cent of the total turnover, followed by Twiga Cement with 29.91per cent and CRDB Bank with 28.06 per cent.

“This is the first time since the new trading rules were passed during August 2019 that TBL emerged as the top mover without a transaction through a prearranged window. “It’s a revival on retail market activities, and hopefully not shortlived,” Orbit’s report showed.

TBL was followed closely by Vodacom, which accounted for 29.9 per cent after trading 0.59 million shares in a prearranged block transaction, at a price of 400/-. On the other hand, foreign investors’ dominance waned during the week as locals controlled most part of the week until foreigners’ participation rose in the prearranged transaction on the Vodacom counter.

Local investors accounted for 69.73 per cent and 73.02 per cent of the total investments and divestments while foreigners accounted for the balance. Key benchmark indices, Tanzania Share Index (TSI) closed at 3,482.92 points, up by 0.15 per cent while All Share Index (DSEI) increased by 0.08 per cent to close at 1,789.19 points.

Sectoral indices Industrial and Allied Index (IA) closed at 4,828.87 points, 0.01 per cent up. Bank, Finance and Investment Index had increased by 0.71 per cent to close at 2,314.14 points. Commercial Services Index closed at 2,141.86 points, same as the week before.

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South Africa: Why Investing in Emerging Market Companies Makes More of an Impact Than Foreign Aid

south africa why investing in emerging market companies makes more of an impact than foreign aid
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For decades, many have viewed foreign aid as the best way for rich, developed countries to help poor, developing countries. In fact, the value of international development aid reached a new peak of $152.8bn in 2019, a slight increase over 2018, according to the Organisation for Economic Co-operation and Development.

Covid-19 and its associated lockdowns have, however, underscored the limitations of foreign aid. In Uganda, for example, aid cuts have forced hundreds of thousands of people to the brink of starvation. Even outside such an extreme example, many believe that foreign aid only serves the interests of donor countries and that it either creates dependency or has too many destitution “traps” to be effective. There are also some who argue that most foreign aid is spent on Western consultants instead of the people it’s supposed to help.

But if foreign aid is ineffective and we accept that wealthier countries should “do their bit” to help, how should they go about doing so?

A much better solution may be to invest in companies in these countries which have long-term commercial viability and which provide local solutions to local problems.

Foreign aid and missing incentives

One of the problems with foreign aid…

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Nigeria: All-Share Index Rises 1.7% As Market Rebounds

nigeria all share index rises 1 7 as market rebounds

The bulls came back strong yesterday to open the stock market on a positive note after depreciating last week.

Last week, the bull run was halted following sustained profit taking.

However, yesterday, the market appreciated lifting the Nigerian Stock Exchange (NSE) All-Share Index (ASI) by 1.73 per cent to close at 34,843.44. In similarly trend, market capitalisation added N309.8 billion to close at N18.2 trillion.

Market analysts had said while profit taking was expected to continue, the bulls would still have the upper hand.

“Yields in the fixed income market remain relatively unattractive, and we expect this to remain positive for stocks. However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings,” analysts at Condros Research had said.

At the close of trading yesterday, the bulls visited 26 stocks compared with 14 bears that appeared in the market. Bellwethers such as Airtel Africa Plc, Dangote Cement Plc and Lafarge Africa Plc were among the price gainers.

Airtel Africa Plc led the price gainers’ table with 10 per cent, trailed by Royal Exchange Plc with 9.5 per cent. AIICO Insurance Plc chalked up 9.5 per cent just as FTN Cocoa Processors Plc and Neimeth International Pharmaceuticals Plc garnered 9.0 per cent, just as Mutual Benefits Assurance Plc and Coronation Insurance Plc gained 8.3 per cent and 7.6 per cent respectively. BOC Gases Plc and GlaxoSmithkline Consumer Nigeria Plc appreciated by 6.3 per cent and 6.1 per cent in that order.

Conversely, Prestige Assurance Plc led the price losers with 10 per cent, trailed by International Breweries Plc with 9.8 per cent. Cutix Plc and NASCON Allied Industries Plc shed 9.4 per cent and 9.3 per cent respectively. Jaiz Bank Plc, Ardova Plc and Union Bank of Nigeria Plc went down by 8.8 per cent, 6.5 per cent and 5.5 per cent respectively.

In terms of sectoral performance, the NSE Industrial Goods Index led the gainers with 1.5 per cent, trailed by the Insurance Index with a gain of 1.3 per cent. On the flip side, the NSE Consumer Goods Index fell by 0.9 per cent. The NSE Banking Index and NSE Oil & Gas Index lost 0.3 per cent apiece.

Meanwhile, activity level weakened as volume and value traded fell 73.9 per cent and 17.1 per cent to 208.1 million shares and N3.7 billion respectively.

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Uganda: Fintechs Taking Charge of Financial Markets – Maggie Kigozi

uganda fintechs taking charge of financial markets maggie kigozi

Financial Technology (Fintech) is taking charge of the financial sector, according to Dr Maggie Kigozi, a renowned businesswoman and former Uganda Investment Authority executive director.

Speaking during the Digital Impact Awards Africa in Kampala at the weekend, Dr Kigozi said Fintechs have shown what they can achieve, especially at a time when the world has been presented with a lot of challenges, amid the fight against Covid-19.

“The financial technology ecosystem players [should] continue to work together to address challenges. There are still a few problems here and there but financial inclusion is happening,” she said, noting the young generation has been key in exploiting opportunities that have delivered a number of products and solutions for the larger population.

In the last 10 years, Uganda has experienced rapid growth in financial inclusion, mainly driven by increasing innovations in Fintech and the advent of mobile money.

The Digital Impact Awards Africa organised by HiPipo in partnership with Mojaloop Foundation, Level One Project and UNCDF, seek to recognise individuals and organisations that are spearheading the use of digital mediums to drive financial inclusion.

The awards in which winners are chosen through a jury assessment and public voting process, saw Standard Chartered crowned the digital brand of the year while Stanbic won the best cards payments excellence award. Jumia won the e-commerce innovation excellence award while Centenary Bank won the community bank excellence award.

During the same function, Ms Damali Ssali, a trade development expert, said financial technology players, e-commerce innovators and funders must ensure that everyone is involved as well as developing platforms that transact in real-time.

“It is unfair that some informal traders offer credit to big e-commerce and Fintechs then wait for days before a payment is made,” she said, noting Fintechs must embrace the principle of same day transaction settlement.

In a panel discussion, women in informal trade around Kampala, said Fintechs and e-commerce innovators must focus on both real time payments and training, which will be key in enhancing digital and financial inclusion.

Ms Grace Akiiki, the Wandegeya Market Women Traders chairperson, said whereas a number of traders had embraced e-commerce, it was still challenging to experience delayed and sometimes non-payment from e-commerce platforms.

“When someone orders online, they order for goods that you don’t even have on your stall. So you have to use your cash to purchase the missing items and prepare this order with hope that you will be paid immediately. But then the payment delays or never comes,” she said.

Brands awarded

Standard Chartered Bank was crowned the digital brand of the year while Stanbic won the best cards payments excellence award. Jumia won the e-commerce Innovation Excellence category while Centenary Bank won the community bank excellence award.

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Kenya: Carbacid Investments Limited Bid to Acquire BOC Kenya Advancing

kenya carbacid investments limited bid to acquire boc kenya advancing
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Nairobi — The intended offer to acquire BOC Kenya Plc the NSE listed and a leading supplier of industrial, medical and special gases in East Africa by listed Carbacid Investments Limited (CIL) in collaboration with Aksaya Investments LLP has moved a stage further with the two entities fulfilling their legal obligation to serve on BOC an Offeror’s Statement.

In response to the service and in compliance with the Capital Markets Regulations governing takeovers and mergers for listed firms, BOC Kenya PLC on 12 December 2020 published the Offeror’s Statement acknowledging the intention by CIL and Aksaya Investments LLP to acquire up to 100 percent of its ordinary shares.

The statement issued by BOC Kenya indicates that CIL and Aksaya Investments LLP are confident of BOC Kenya’s business prospects and are seeking to acquire the firm as part of a long-term investment strategy.

While BOC Kenya produces and supplies industrial, medical and special gases, CIL’s main operating subsidiary Carbacid (CO2) Limited is the region’s leading producer of food-grade carbon dioxide extracted from natural underground reservoirs in Kenya.

“The Offerors are aware that between the fiscal year 2015 and the fiscal year 2019, the Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) of BOC has dropped by a Compounded Annual Growth Rate (CAGR) of 10.9 percent to Sh145 million from a high of Sh230.3 million. The Offerors acknowledge the changes in the performance of the business; however they believe in the underlying long term prospects of BOC’s business and product offerings and therefore have confidence in making this offer,” the Offeror’s Statement explains.

Among other elements, the Offeror’s Statement also confirms that at the close of the takeover deal, the existing contractual and statutory employment rights of all BOC Kenya employees will continue to be in force in accordance with the law.

CIL Chairperson Amb. Dennis Awori recently confirmed that BOC Kenya’s United Kingdom-based majority shareholder, BOC Holdings supports the intended offer and has issued an irrevocable undertaking to sell its 65.38 percent stake in BOC Kenya.

Awori further explained that the proposed acquisition of BOC Kenya by CIL and Aksaya is an excellent match that will, in the longer term, position the enlarged group to become the leading regional supplier of choice for carbon dioxide gas and related products, industrial, medical and special gases, and related equipment and services.

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Nigeria: NSE Honours Adichie With Closing Gong Ceremony

nigeria nse honours adichie with closing gong ceremony
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The Nigerian Stock Exchange (NSE or The Exchange) last Friday honoured award-winning author, Ms. Chimamanda Ngozi Adichie, with a digital Closing Gong ceremony in recognition of her literary exploits and successes.

Speaking during the ceremony, the Chief Executive Officer, NSE, Mr. Oscar Onyema said Adichie was a testament that Nigeria is a reservoir of talent.

“She is a mentor who consistently promotes equal opportunity and inspires women to believe in their ability to achieve set goals.

“As an Exchange, our values align with the aspiration to create a world where gender is not a criterion for success, rather, the strength of a person’s character and their capacity to deliver in their engagements.

“We are, therefore, glad that our platforms offer opportunities to tell the Nigerian story of strength and brilliance as well as inspire the greatness in our unity and diversity,” he added.

On her part, Adichie said: “I am very delighted to be here today and it is my hope that my story inspires someone to know that you can keep trying and keep doing. I often speak about how important it is for women to be included not because we are doing women a favour, but because it makes economic sense to tap into the wealth and knowledge that is often underutilized, under-recognised and under-celebrated.

“I must, therefore, commend the policies of The Exchange in this regard. Ultimately, 2020 has been a strange year and it is my hope that next year will bring more clarity and I will be able to participate in this Closing Gong ceremony again, this time physically.”

The exchange has continued to demonstrate that gender equality is at the heart of its Corporate Sustainability and Responsibility (CSR) strategy, and it has continued to contribute to strengthening diversity within the market. In terms of increasing female participation across its operations, NSE has achieved a 1:1 women to men ratio across members of staff, and a female representation of 27 per cent on the National Council, the highest level of leadership of the NSE.

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Nigeria: Market Extends Losses, NSE Gets Lawmakers’ Support

nigeria market extends losses nse gets lawmakers support
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The Nigerian Stock Exchange (NSE) All-Share Index ( ASI) fell by 0.04 per cent to close lower at 35,021.26 as the equities market extended its negative performance for the third day. The market had opened the week with a decline on Monday on profit taking, a trend that has persisted for three days.

As at the close of trading yesterday, the NSE ASI has dipped by 0.33 per cent while market capitalisation shed N61 billion in three days. A total of 21 stocks depreciated while 13 appreciated yesterday.

Meanwhile, the House of Representatives and Securities and Exchange Commission (SEC) of Nigeria have reiterated their support for the NSE to enable the exchange play a critical role in aiding Nigeria’s economic recovery and sustainable growth.

They stated this at the enlightenment tour of the Committee on Capital Market and Institutions, Federal House of Representatives and the SEC to exchange.

Speaking, the Chairman, Committee on Capital Market and Institutions, Federal House of Representatives, Ibrahim Babangida, said: “It is my pleasure to be at the exchange and to hear about the commendable work that is being done. At the federal level, we want to see the NSE and indeed the capital market play its significant role in the economic recovery process of Nigeria especially now that the country has plunged into recession.

“We recognise that some of the rules within the capital market must be revisited to deliver the results we expect, and we, hereby, reiterate our support for the NSE where legislation is required to make the necessary changes.”

Also speaking the Director General, SEC, Mr. Lamido Yuguda, expressed his delight to be at the exchange and thanked the leadership for hosting the delegation. “The SEC has been working collaboratively with the exchange and we will continue to support the NSE to grow the market capitalisation, reduce the incidence of delisting and ensure that the market develops into what Nigeria truly needs. We have seen the massive infrastructure needs of the country and we are confident that the capital market has the capacity to raise the funds needed to finance infrastructure in Nigeria.”

On his part, the Chief Executive Officer, NSE, Mr. Oscar Onyema, said: “Advancing the Nigerian capital market is the collective goal of all key stakeholders and we remain committed to collaborating with the government at all levels to advance and deepen this market.”