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Tuesday, 13 Oct 2020

World Bank bans Kenyan tech firm over fraud in Liberia project


Insights Africa

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Economic Outlook

Economic Outlook

  • In Uganda, the World Bank and the Swedish International Development Agency (SIDA) funded 3 MM USD ublic-private partnership (PPP) project called the Uganda Reproductive Health Voucher Project (URHVP) from 2015-2019. The project purported to increase access to maternal reproductive health for poor women by aiding them in “accessing safe delivery services.”
  • The value and price of residential and rental properties in the Greater Kampala Metropolitan Area decreased in the period ended September, according to Uganda Bureau of Statistics (Ubos). The decrease was occasioned by slowed activity in the general performance of the economy due to Covid-19.
  • Zimbabwe has been singled out as one of the countries with the lowest daily mobile money transaction limits in Africa, a development seen as hindering the growth of the mobile money sector and hampering financial inclusion.
  • In Namibia, while there is a cumulative 75% reduction in the repo rate since the beginning of 2020, there has been no significant increase in uptake of credit. This is according to the latest private sector credit extension report by the Bank of Namibia which shows that there is an increase of 0.76% amounted to 774.1 MM NAD (46.82 MM USD) in credit extended to the private sector by in August 2020.
  • The Organised Private Sector (OPS) of the Nigerian economy has called on the federal government not to rely much on oil revenue for the effective implementation of the proposed 2021 budget due to the usual burst and boom cycle of crude oil prices.
  • IFC, a member of the World Bank Group, has announced a finance guarantee facility to Union Bank to boost access to finance for local business and enable increased international trade for Nigeria. The 40 MM USD facility, under IFC’s Global Trade Finance Program (GTFP), will support Union Bank to establish working partnerships with nearly 300 major banks within the GTFP network.
  • The World Bank approved 80 MM USD grant from the International Development Association (IDA) to support the government of Ethiopia boost agricultural productivity and enhance market access for smallholder farmers.
Political Events

Political Events

  • The Democratic Republic of Congo President Felix Tshisekedi hosted the long-awaited meeting for regional heads of state to address peace and security concerns as well as economic cooperation. The Congolese leader had invited Rwandan President Paul Kagame, Uganda's Yoweri Museveni, Burundi's Evariste Ndayishimiye and Angola's Joao Lourenço for a mini summit initially slated for September 17 in the eastern DRC city of Goma, North Kivu Province.
  • Uganda and Tanzania are locked in a dispute over road user fees for trucks headed to the Dar es Salaam port, with Kampala threatening to retaliate against “unfair” charges imposed on its transporters that are higher than those applicable to Rwandan shippers.
Stock Market

Stock Market

  • The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, has identified the Central Bank of Nigeria’s (CBN) restriction of domestic investors from participating in its open market operations (OMO) as well as the interest rate cut as policies that have continued to buoy the stock market performance.
  • Three East African countries have joined forces to implement a World Bank-funded financial project that aims to connect regional stock markets electronically. This means they can operate as a single market with a view of reducing the cost and time of trading in shares of companies listed on markets across the borders. These countries are Uganda, Rwanda and Tanzania.

                         Note:  Weekly values are calculated on Friday of each week.

Companies Transactions

Companies Transactions

  • The World Bank has banned Kenyan IT firm, Techno Brain (Kenya) Limited and its UAE-based parent company Techno Brain Global FZ-LLC for fraud in an Integrated Public Financial Management Reform Project in Liberia. The Kenyan unit will remain banned from World Bank supported projects for 28 months while its parent company will remain blacklisted for 10 months.
  • Eurowings, a wholly-owned subsidiary of the Lufthansa Group will launch passenger flights from Frankfurt to Mombasa and to Zanzibar on March 31, 2021, targeting tourists planning to visit the East Africa region. The airline will fly two times per week coinciding with the traditional low season period which at the Kenyan coast extends from April to Mid –July.
  • Aminex is delighted to announce that its wholly owned subsidiary, Ndovu Resources Limited, has received approval from the Tanzanian Government for the transfer of a 50% interest in, and operatorship of, the Ruvuma PSA to ARA Petroleum Tanzania Limited (APT). With receipt of such approval, the Company anticipates completion of the Farm-Out within the next few days.
  • Family Bank has announced a partnership targeting private schools to fund their acquisition of key utilities. This comes as the Ministry of Education undertakes progressive reopening of schools. The mid-tier lender said the deal will see private schools access credit of up to 3 MM KES (27,624 USD) to finance key infrastructure upgrade as schools reopen.
  • Fast food retail chain Big Square has expanded its presence with its second branch outside Nairobi. The 45 MM KES (414,364 USD) outlet in Eldoret will be the 12th store for the restaurant chain which operates 10 stores in the capital city and one in Mombasa.
  • Local retailer Naivas will expand its branch network to 70 by the close of the year with four more outlets. Speaking during the official opening of the its 66th outlet at Waterfront Mall in Karen, Naivas Chief Commercial Officer Willy Kimani said one of the new branches in the pipeline will be at Lifestyle Mall in Nairobi’s central business district, which previously hosted Nakumatt.
  • Crown Paints is set to raise 8 MM KES (6.55 MM USD) through a rights issue, bringing back a form of funding companies that has been absent among Nairobi Securities Exchange-listed firms in recent years. The company plans to sell a total of 71.1 million shares to existing shareholders, pricing the offer at 10 KES per share. This represents a 76.4% discount to its share price of 42.5 KES on the Nairobi bourse as of Thursday.

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