Tag Archives: Chief Executive Officer

DSE chief calls for increased foreign participation

Limited foreign investors’ participation at the Dar es Salaam Stock Exchange (DSE) has been constraining the bourse from expansion. DSE Chief Executive Officer, Mr Moremi Marwa DSE Chief Executive Officer Mr Moremi Marwa said the decision to raise the share of foreign investors’ participation was still under consideration by the regulator. “Throwing the fledging bourse open to foreign investors could be an important milestone that would attract more wealth and make the market vibrant,” he said. Under the current framework, foreign investors are allowed to purchase only up to a maximum of 60 per cent of shares floated at the exchange while the remaining 40 per cent is being reserved for local investors. The Nairobi Stock Exchange (NSE) foreign participation is over 70 per cent, while in Uganda it is 100 per cent, thus putting the bourses in the position to attract substantial investments from outside the country. By allowing more foreign investors to chip into the DSE, he said, immediate impact would be seen in the shares by gaining their true value. “Most of the shares were currently undervalued despite registering outstanding performance at the bourse,” he noted. The bourse that opened its doors to the public in 1998 is currently having the total market capitalization of around 16tri/-, of which the domestic market capitalization amounting to 6tri/- from 18 listed companies, constituting of 12 locals firms and six cross-listed. Statistics reveal further that the DSE depth of domestic market capitalization ratio to Gross Domestic Product (GDP) stands at 12 per cent and 33 per cent for total market capitalisation respectively. The investors base at the bourse is only 185,000, the figure which is marginal compared to total population of 45 million and economic activities. Source Tanzania Daily News

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Dar lacks bankable projects, experts say

Tanzania is awash with cash, but no credible projects to finance, stock...

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Microlender targets low income earners

K-Finance Limited yesterday introduced to the market ‘housing improvement loan scheme’, an initiative targeting, low income earners owning unfinished houses. The company’s Chief Executive Officer, Ms Devotha Minz, told the ‘Daily News’ in an interview that K-Finance would be providing loans ranging between 200,000/- and 50m/- to entrepreneurs and individuals. “The initiative aims at empowering low income earners to have decent homes,” she said. She said K-Finance Limited, a micro-credit, business mentoring and insurance firm, is also dedicated in providing skilful education called ‘REVUKA’ to entrepreneurs on how to do business efficiently and profitably. Ms Minz said further that her microfinance firm has so far disbursed loans to more than 3,000 people since its establishment in 2008. She said SMEs have low default rate as 98 per cent of borrowers repay the loans. It is estimated that all the Microfinance Institutions (MFIs) in Tanzania put together serve a combined client population of about 400,000 SMEs, which is only around 5 per cent of the total estimated demand. Source Tanzania Daily News

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24,000 nominated for Transform Kenya awards

Kenya: After an overwhelming public response, the process of shortlisting winners of Transform Kenya awards has now started. More than 24,000 entries were made by Kenyans who nominated individuals and institutions they consider to be transforming the country and touching the lives of citizens in their work. The entries were made through SMSs, internet voting and physical votes. From the entries, a shortlist of 45 personalities will be made by Riara University, from which 15 winners will finally be selected in 15 categories at a grand gala to be held later. The initiative is a partnership of Deloitte Compan, Riara University and Standard Group Ltd. Speaking Wednesday at the Riara University during the signing of a memorandum of understanding, Riara University Vice Chancellor Kiarie Mwaura said the selection of winners will be based on innovativeness, transformation attributes of nominees and the impact on lives of those around them. “The number of votes that the nominees have gotten will contribute to 40 per cent of the final mark. Our consultants will also go to the ground to confirm the work being done by nominees. This will contribute to 60 per cent of the mark,” said Prof Mwaura. Riara University will do data tabulation and verification to determine the winner. “This initiative of identifying the innovative people driving the transformation will have a multiplier effect in making Kenyans to do more in improving the lives of others. This will move the country forward,” said Mwaura. Standard Group Chief Executive Officer Sam Shollei indicated that the unique award may be turned into an annual event and hopes to increase the number of categories of entries. “As we celebrate 50 years of independence, it should also be 50 years of evolution in the country. We should also look at what we, as a people, have done in transforming our lives, the lives of those around us and the nation as a whole,” said Mr Shollei. The awards recognise and reward individuals, businesses and institutions committed to elevating the quality of life of Kenyans through their work. The need for the awards was informed by the presence of many Kenyans who do exemplary things to inspire and facilitate better lives for the surrounding communities, and yet remain uncelebrated. Shollei lauded Riara’s vision of nurturing innovators through its network of educational institutions from kindergarten to university level. He said the Standard Group would continue partnering with Riara in the future.

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Rwanda Govt rolls out Rwf12.5bn Bond for infrastructure

The government yesterday kicked off a campaign to market its Rwf12.5 billion ($18.3 million) Treasury Bond to raise funds for infrastructure programmes and reinvigorate the bond market. Finance minister Amb. Claver Gatete (R) together with Celestine Rwabukumba, Chief Executive, Rwanda Stock Exchange, at the news briefing yesterday.Timothy Kisambira. The bond is set to be listed on the Rwanda Stock Exchange (RSE) on Monday 24, and targets local and regional investors. It has a maturity period of three years. The interest rate will be determined on Monday at the close of “book building” – a process through which potential investors will determine its demand and price through public bidding. Finance minister Claver Gatete said a countrywide awareness campaign will be conducted this week. The campaign will also spread to Kenya with the aim of attracting interest from potential institutional and individual investors. “This is where you put your money and get good returns with proper guarantee from government. We are putting in place incentives to attract investments, such as reducing the withholding tax on interest to 5 per cent, down from 15 per cent for EAC residents,” Gatete said. “It will be rolled out countrywide to ensure that even the ordinary citizens, who may not understand the dynamics of the bond market, benefit,” he said. Once the bond is listed on Monday, bids from investors will be received until February 27 at a minimum of Rwf100,000 for individuals, while companies will enlist for competitive bids of up to Rwf50 million. “Interested investors should consider this as a risk-free business venture with returns guaranteed by the government. You can sell the bonds anytime on the RSE and you can also pledge them as collateral for any loan to a third party,” Celestin Rwabukumba, the chief executive officer of RSE said. Both primary and secondary bond markets have been inactive on the RSE, but a recent survey by BNR revealed that appetite for government paper on the local market increased following the success of Rwanda’s $400 million international Eurobond issued last year. Proceeds from the Eurobond have been invested in clearing RwandAir’s debts, production of 28mw of electricity from Nyabarongo hydro electricity project and construction of Kigali Conventional Centre. The completion of a five-star hotel at the dome-shaped centre, as well as the 28mw from Nyabarongo will both be achieved by May, according to Gatete. Between 2008 and 2011, the BNR issued long term Treasury Bonds,  worth Rwf31 billion, in order to promote the capital market by availing investment opportunities. The subscription level reached a staggering 197 per cent on average and the price ranged between eight per cent and 11.5 per cent. Government has paid back most of it, with Rwf8.5 remaining to be settled. Fitch Ratings, one of the most respected rating agencies in the world, this month rated Rwanda’s long-term foreign and local currency Issuer Default Rating at ‘B’, underlining the country’s credit worthiness and debt repayment ability. According to Gatete, government debt, which stands at 29 per cent of GDP, is still sustainable and offers room for flexibility in sourcing for funds. By Ivan Mugisha, The New Times

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Accused for fake ARVs bailed out

The co-accused in a case facing Chama Cha Mapinduzi Dar es Salaam Regional Chairman, Ramadhani Madabida, in the alleged fake ARV drugs case, have ...

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Privatisation: MPs want more energy, flexible laws

Members of the Chamber of Deputies’ Standing Committee on Economy and Trade have urged the government to increase electricity supply and adopt an industry-friendly regulatory framework. Clothilde Mukakarangwa The legislators made the observations yesterday during a meeting with officials at the Rwanda Development Board (RDB) during which they shared their findings from a three-week countrywide tour of privatised companies. The tour sought to assess how the privatisation policy has benefitted both the private sector and the ordinary people. The MPs said privatisation has generally helped improve the financial standing of most of the formerly state-owned companies that were previously struggling.But friendlier laws and increased power supply would help make the businesses in question more profitable. They said that exonerating certain businesses like those in fisheries and energy production from observing the minimum 50m from protected areas such as water bodies and marshlands would help reduce on the cost of production. The legislators also called for a lower power unit price for the industry. “Looking at how much some factories are paying on electricity, some might end up shutting down soon,” MP Emmanuel Mudidi warned. He said there was need to subsidise energy for manufacturing firms that operate 24 hours. “Ideally, those who consume more should pay less per unit.” The MPs also urged government to expedite projects designed to increase energy production. The government has promised to increase electricity generation in the country from the current 110 megawatts (MW) to 563MW by 2017. Responding to the lawmakers, Amb. Valentine Rugwabiza, RDB’s Chief Executive Officer, explained that the government is aware of the energy challenges the country is faced with. She said the government’s plans for more energy production over the next three years will go a long way in addressing these challenges. “We know it’s a serious issue. Our energy is very expensive because we don’t have enough. But we have a lot of ongoing investments in the sector which will deliver very soon,” she said, adding that the energy sector remains a priority area for investment. Officials at the Ministry of Infrastructure said last month that Nyabarongo 1 hydro power plant, set to produce 28MW, could start generating electric power by June

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