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Satchu's Rich Wrap-Up
 
 
Tuesday 20th of March 2012
 
Afternoon
Africa

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Horn of Africa region has Huge Potential The Star
http://j.mp/xZADgP

THE IGAD executive secretary Mahboub M. Maalim was my guest at
mindspeak this weekend. He is a Kenyan from Garissa and a passionate
advocate for the Horn of Africa. IGAD stands for The Intergovernmental
Authority on Development and encompasses Djibouti, Eritrea, Ethiopia,
Kenya, Somalia, North and South Sudan and Uganda. To an outsider, the
immediate association is surely one of ‘ungoverned spaces’ and of wars
of various different intensities. This past week the Ethiopia Eritrea
skirmish, the viral #STOPKONY campaign, the still unresolved Sudan
pipeline dispute and apparently high tides reducing the pirate threat
bleeped on my Radar. IGAD was originally hatched to bring peace and
stability to this region. Peace surely remains the overarching
narrative. The executive secretary was bullish about the prospects for
peace and in particular about peace for Somalia.

During the last few weeks, Turkish Airlines started direct flights
between Turkey and Mogadishu. All kinds of luminaries have stopped in
Mogadishu of late. It has become the in place. I have said before that
I believe that we are sitting on a lake of hydrocarbons from the Horn
of Africa down to Mozambique and I saw a report in the British
Guardian which said Somalia might have the same oil reserves as
Kuwait. The executive secretary, of course, comes from a line of
pastoralists and he told me about how 3.5m camels were exported every
myear from the port of Djibouti. William J Hague, the British Foreign
mSecretary, mentioned that the Somali diaspora sends more money back
home in remittances than the entire foreign aid that Somalia receives.
Of course, don’t forget the LAPPSET project which is intended to open
up the Horn and the hinterland to the World. These snippets speak to a
new narrative, a very nascent one admittedly.

I started my introduction with Vinod Khosla’s quote:

‘’The future is not seen in the rear view mirror.’’

There are plenty of curve balls. Will Omar Bashir and Salva Kiir kiss
and make up? How about Isaias Afewerki and Meles Zenawi? Are the al
Shabaab now ‘deadenders’?
Will we handle our election with proper despatch?

The World is now flat as a pancake and there will surely come a day
when the Horn of Africa becomes a hot investment destination.

I cite the example of Bob Geldof who first became famous as the
front-man of Irish punk rock group the Boomtown Rats, but his work on
Africa has overshadowed his early rock career, with his name forever
tied to the band aid single and live aid concerts that raised millions
of dollars for African aid. He is now the chairman of an
Africa-focused private equity fund which said earlier this month it
had raised $200 million from investors. Dubbed 8 miles, the fund plans
to invest in companies that can develop into “African champions.”

Macro Thoughts

Buy Oil on retracements.
Ditto Gold.

Home Thoughts

My Little One was feeling poorly. And it reminded me of the Story of
Emperor Babur and Humayun

The story of Babur's sacrifice for his son is famous.

After taking counsel with the wise, the Emperor determined to
sacrifice the most valuable thing in the possession of the' sufferer,
in order to ransom his life. Some suggested that the great diamond
should be given in alms ; but Babur, deeming that he himself was the
most valuable thing possessed by Humajom, determined to make offering
of his own life. After the appropriate ceremonies, he walked three
times round thff
filck-bed, and then exclaimed that he had borne av/ajr Humayun's
sickness. From that moment, the story runs, Humayun rallied while
Babur sank.

By this rite, in which faith prevails even to-day among asiatics,
Babur believed that he had ransomed his son from death. Humajnin did
recover, and the Emperor looked upon his own life as forfeit.

Babur's Tomb
http://j.mp/nKx9lE

read more


An Interview with Hon @Martha_W_Karua RICH TV
Law & Politics

Thanks to Martha_W_Karua for coming to #Mindspeak with IGAD Twitpic
http://www.twitpic.com/8xdil3

read more


Change is coming to China – but will Beijing lead a social revolution? Guardian
China

It was the greatest political upheaval in years, but it may not be the
last. China's dramatic ousting of the leadership contender Bo Xilai on
Friday may have been an anomaly – or it may be a sign of trouble ahead
as the world's second largest economy prepares for a once in a decade
power transition.

"My guess is that it's going to be a bumpier ride than 10 years ago,"
said Jean-Pierre Cabestan, of Hong Kong Baptist University.

Wu Qiang, a political scientist at Tsinghua University, said: "This is
the most intense moment in the past 15 years and could have a big
impact on society. The upcoming political competition is healthy and
worth anticipating, but could potentially result in instability."

The National People's Congress's 70 richest members added more to
their wealth last year than the combined net worth of the US Congress,
the president and his cabinet and the US supreme court justices,
Bloomberg reported recently.

For me, 2012 onwards is going to be a transition from GDP growth to
sociopolitical change and the return of politicians; technocrats being
replaced by people who actually have to communicate to the public what
the policy options are and which choices should be taken and try to
build not just consensus in the party, but in society.

"The new leaders are more reformist in their provincial levels. It's a
question of what they attack and the speed at which they take those
issues.

"I guess they will be gradualist and my instinct is that they will
have to hit these quicker than they expected. Tensions have grown and
it isn't sustainable."

read more


Russian special forces arrive in Syrian port: opposition
Law & Politics

Russian special forces have arrived in the Syrian Mediterranean port
city of Tartus, opposition sources told Al Arabiya on Monday.

Israeli-based open source military intelligence website DEBKAfile has
also reported that two Russian naval vessels have anchored at the
Syrian port of Tartus.

The website cited reports from the Russian Black Sea headquarters at
Sevastopol. The mission of the vessels was not disclosed, but one was
reported to be carrying a unit of “anit-terrorist marines” and the
other, a military tanker which joined “a Russian naval reconnaissance
and surveillance ship already tied up in Tartus.”

The Syrian port of Tartus is now the only naval base Russia has
outside the former Soviet Union. A Russian navy squadron made a call
there in January in what was seen by many as a show of support for
Assad.

Tartus FLICKR
http://j.mp/yF1D3a

“However security chiefs paint [a] beautiful picture in their reports.
They ignore many substantial facts on the ground, simply to boost the
president’s morale,” he said.
http://j.mp/y8Ke5Z

“Every evening at 7:00 pm Damascus time, there is a meeting of all the
intelligence and security chiefs looking back at what happened across
the country during the day, making their plans, making their orders
for the next day,” our correspondent said.

“These orders then go to the office of the president the next morning
and he himself signs all the orders, the final go ahead,“ he added.

read more


Currency Markets At A Glance WSJ
World Currencies

Euro 1.3235 The dollar fell for a third session against the euro Euro
hasn’t closed above $1.32 since March 8 according to FactSet Research.
Swiss Franc 0.9117
Japan Yen  ¥83.44
Dollar Index 79.50 Bernanke gives the first of four lectures at George
Washington University today
Pound 1.5872 Chancellor of the Exchequer George Osborne will deliver
the government’s latest budget plan on Wednesday.
Aussie 1.0574
India Rupee 50.235
South Korea Won 1124.54
Brazil Real 1.8214
Egypt Pound 6.0366
South Africa Rand 7.5459

EURJPY -turned up 0.3% to ¥110.44, near its highest level in more than
four months.

Euro Yen 6m Chart INO 110.40 Last
http://j.mp/GAQ0UP

I venture the Japanese have been wagging this Tail all the Better to
soften the Yen -

Australia Dollar 1 Year Chart INO 1.0521  Last
http://j.mp/pqJzWJ

Highly correlated to China and China is slowing down fast.  BHP
Billiton Ltd., the world’s largest mining company, said China’s steel
production is slowing.

read more


OPEC Recycles Dollars Into Debt 50% Faster Than Foreigner Bloomberg
Commodities

The OPEC nations -- Algeria, Angola, Ecuador, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and
Venezuela -- provide about 44 percent of the world’s oil. They will
earn $1.105 trillion in 2012, up from an estimated $1.01 trillion last
year, which was a 30 percent increase from $778 billion in 2010, the
government’s Energy Information Administration in Washington said.
They held $258.8 billion of the $10.428 trillion of Treasuries
outstanding as of Jan. 31, up from $215.5 billion a year earlier and
$211.9 billion in January 2010, Treasury Department data show.

read more



Commodity Markets at a Glance WSJ
Commodities

Live Crude Oil chart
http://www.livecharts.co.uk/MarketCharts/crude.php

‘Iran oil exports increase in January despite sanctions’ PRESS TV
http://j.mp/GAhHzM

Iran, the second-biggest producer of the Organization of Petroleum
Exporting Countries (OPEC), exported 2.265 million barrels a day in
January, its highest monthly figure since December 2008, Bloomberg
reported on Monday.

Crude Oil 3m Chart INO 107.58 Last
http://j.mp/zcRDMx

Oil for April delivery slid as much as 79 cents to $107.30 a barrel in
electronic trading on the New York Mercantile Exchange and was at
$107.33 at 3:46 p.m. Singapore time. It gained 1 percent to $108.09 a
barrel yesterday, the highest close since March 1. The April contract
expires today. The more actively traded May future fell 80 cents to
$107.76 a barrel. Front-month prices are up 8.6 percent this year.

Conclusions

I expect Fresh 2012 Highs with Iran essentially off the Grid.

Gold 3 Month Chart INO 1650.06 Last
http://j.mp/ywc7Gi

read more


Radical Chic Schiaparelli, Prada, and clothes on the cutting edge NewYorker
Misc.

Last June, Men’s Fashion Week in Milan took place a few days after
Miuccia Prada and her husband, Patrizio Bertelli, who runs the
business end of their empire, had raised $2.1 billion with a
long-delayed, much ballyhooed initial public offering on the Hong Kong
Stock Exchange. Both the I.P.O. and Prada’s runway show—a collection
of Day-Glo floral prints and nerdy plaids—inspired complaints from
Giorgio Armani. “Fashion today is in the hands of the banks and of the
stock market and not of its owners,” he told the press. He went on to
scold Prada for “bad taste that becomes chic.” Her clothes, he added,
are “sometimes ugly.

Armani’s perception was hardly novel, and Prada might not have
disagreed—“I fight against my good taste,” she has said—though she
also might have pointed out that when bankers want a fashion insurance
policy they buy one of Armani’s suits. He is the champion of the
risk-averse, and Prada has always slyly perverted the canons of
impeccability that his brand embodies.

read more


Washington DC, US: the Jefferson Memorial is seen as a backdrop to the cherry blossoms which are in full bloom
Misc.

Washington DC, US: the Jefferson Memorial is seen as a backdrop to the
cherry blossoms which are in full bloom due to the early warm weather
along the east coast of the US

read more


Brazil Real 1 Year Chart INO 1.8173 Last
World Currencies

Mantega said he had an Infinite Arsenal with which to weaken the Real.

read more


Resource Nationalism In Africa: What It Means For Governments, Companies And Communities – By Jolyon Ford At Oxford Analytica.
Africa

Is it possible (as at least one analysis firm attempts) to rank
extractive sector jurisdictions in terms of the relative strength of
local ‘resource nationalism’ forces? There is often good reason to
doubt the commercial utility of comparative country risk rankings, or
at least to closely scrutinise the assumptions and methodologies used
in compiling them.

It may be more useful to track drivers or triggers for government
actions on resource revenue issues in each setting than to try to
compare jurisdictions. ‘Resource nationalism’ is a global phenomenon
partly reflecting the commodities ‘supercycle’, but also one with very
discrete wrinkles particular to individual sectors and countries. Take
Ghana’s decision late last year to revisit fiscal arrangements in the
mining sector. The move partly reflects the government’s response,
like others on the continent, to global demand/price factors. Indeed,
the IMF advised Accra to consider raising its mining tax levels.
However, the move is also closely-connected to the role that mining
revenue possibilities have come to play in Ghana’s upcoming (and
tightly-contested) election later this year.

Conclusions

The Recent ZANU-PF success at wrestling some Equity off Impala is
clearly a shot across the Bows. My Sense is that Some Companies have
negotiated Egregious Deals [typically by padding an Account or Two]
and it is these Enterprises who are now at serious Risk. Extractive
Companies have to take a much more holistic View. They have to effect
meaningful Trickledown for the Local Communities and not embark on PR
Wheezes in order to make their Businesses bullet Proof. The Other
Deals that smell real odious are the long Term Land Leases at
Peppercorn Rents. Those Deals at < than $1.00 an acre look frightful
and their unravelling inevitable.
Aly-Khan Satchu
Nairobi
http://www.rich.co.ke

read more


Sudan eyes up to $1.5 bln with pipeline-backed sukuk Reuters
World Of Finance

Sudan aims to raise $1 billion to $1.5 billion this year with Islamic
"sukuk" bonds that offer stakes in an oil pipeline, a move the African
country hopes will draw more Gulf Arab investment to its debt market,
a senior official said on Monday.

Sudan Financial Services Co., which issues Islamic bonds on behalf of
the government, wants to offer the dollar-denominated sukuk within two
months, General Manager Azhari Eltayeb Elfaki told Reuters.

"Now, inshallah (God willing), we are going to make sukuk for the
pipeline," Elfaki said in an interview, referring to an oil pipeline
running from oil fields including Heglig to a Red Sea terminal at Port
Sudan.

"Now they (the finance ministry) are making the technical studies and
the evaluation of the pipeline itself. I think they will finish it,
inshallah, by the end of this month."

read more


Libya firms sues Zambia over seizure of telecom Reuters
Information & Communication Technology

Libya's LAP Green Networks is suing the Zambian government for $480
million over the seizure of its 75 percent stake in the country's only
fixed line telephone operator, the company said on Monday.

"We are compelled to take this course of action as dictated by the
procedure set out in Zambian law," LAP Green said in a statement.

"The petition filed today outlines LAP Green's right to financial
compensation for the value of the asset at the time of seizure should
the shareholding not be restored to it, which is calculated to be $480
million," it said.

Under its previous government, Zambia sold a majority stake in Zamtel
to the Libyan operator for $257 million.

read more


Malawi protesters torch police station as discontent rises Reuters
Law & Politics

LILONGWE (Reuters) - Anti-government protesters torched a police
station in Malawi's capital on Monday, raising tension in the
destitute country that was last year rocked by the police killing of
20 people in similar protests.

The latest outbreak of violence followed the weekend arrest of the
chairman of the government's Human Rights Commission. The commission
had sharply criticised the administration of President Bingu wa
Mutharika for the July 2011 crackdown, accusing his government of
using unjustifiable violence and arrests to intimidate its critics.
Police spokesman Davie Chingwalu said the anti-government protesters
had become violent after a demonstration they were holding was broken
up.

"(They) set on fire a police station, a police vehicle and a house
belonging to one of our officers after we stopped a rally, which could
have potentially sparked more violence because of rising political
tensions," he said.

Activists last week gave the president a 60 day deadline to account
for his wealth, address the chronic fuel and dollar shortages that
have added to the misery of the poor, and to restore diplomatic ties
with former colonial master and major aid donor Britain. Similar
demands led to the July protests.

Conclusions

The State House has further observed that certain papers refer to the
Head of State as the 'Big kahuna' or 'Moya'. This is demeaning our own
Head of State and no sensible and sound journalist would propagate
such reportage. This MUST stop forthwith.

A Boy Fishing Lake Malawi
http://j.mp/zhygkF

read more


South Africa Current Account Gap Unexpectedly Narrows Bloomberg
World Of Finance

The shortfall, the broadest measure of trade in goods and services,
shrunk to 3.6 percent of gross domestic product from a revised 4.1
percent in the third quarter, the Reserve Bank said in its Quarterly
Bulletin released in Pretoria today. The median estimate of 10
economists surveyed by Bloomberg was for a shortfall of 4.2 percent.
South Africa relies on foreign investment in stocks and bonds to fund
the current account gap, inflows that have fluctuated as investors
sold off riskier, emerging-market assets last year. The narrower
current account deficit may help underpin the rand, which gained 6.8
percent against the dollar so far this year.

Dividend payments to foreigners “declined following exceptionally
large payments in the third quarter,” the central bank said. “This
offsetting effect was large enough to result in a modest narrowing of
the deficit on the current account.”

The shortfall was financed by foreign investment inflows last quarter.
Non-resident investment in stocks and bonds reached 12.5 billion rand
($1.7 billion) worth of investments in stocks and bonds in the fourth
quarter, after an outflow of 21.4 billion rand in the previous three
months, the central bank said.

Dollar versus Rand 3m Chart INO 7.5474 Last Rand +6.8% 2012
http://j.mp/nO41KU

read more


Guilty – of watching a film on the Arab Spring Independent
Law & Politics

Zimbabwe issued a tough warning yesterday that opposition to President
Robert Mugabe's 32-year rule will not be tolerated when six political
activists who screened a film about the Arab Spring were found guilty
of conspiring to commit public violence.The five men and one woman –
who include students and trade union leaders – will be sentenced after
a mitigation hearing today at Rotten Row magistrates' court in the
capital, Harare. They face up to a decade in prison.

After the guilty verdict, the lead accused Munyaradzi Gwisai, a
44-year-old university professor, said: "The judiciary is being used
by the regime to persecute and intimidate the opposition and civic
society, to keep them confined by court cases that drag on, even if
there is no case against them."

The group was charged with treason in February last year after they
and 40 others were arrested at a trade union office, at which a film
consisting of television news clips of the rebellions in Tunisia and
Egypt were shown.

The six say they were tortured in custody – by being beaten with
planks of wood – until they confessed to plotting to overthrow
President Mugabe, 88. The 40 others were released and, in a case that
has lasted more than a year, the charges against the six were
eventually downgraded from treason, which carries the death penalty.

In his judgment, which he read from handwritten notes in a packed
courtroom with intermittent electricity, magistrate Kudakwashe
Jarabini rejected the group's claim that the meeting, held in an
office on 19 February last year, was "innocent and academic".

More than 160 people had flocked to the tiny courtroom, including
trade union leaders, diplomats, human rights activists and politicians
from the opposition Movement for Democratic Change (MDC). The judgment
had been postponed yesterday and when it resumed, riot police were in
position outside the court.

The magistrate, whose mother-in-law is the sister of the President's
wife Grace Mugabe, quoted tortuous interpretations of the law:
"Watching a video like the one in question is not a crime. But the
manner of watching had no good intention. The video was meant to
arouse feelings of hostility among those watching."

The prosecution had claimed that the six had been plotting an uprising
which "had gone beyond the planning stage" and was to start on Africa
Unity Square in Harare on 1 March last year.

After the verdict, the six were close to tears and some were unable to
bring themselves to speak. Edson Chakuma, 38, a trade union leader,
said: "After going through torture and persecution and such a long
court case, I am devastated. This sends the signal that we are no
longer free to express ourselves."

A supporter at the court, Raymond Majongwe, secretary general of the
Progressive Teachers Union of Zimbabwe, said: "The government uses a
dipstick. Every time it sees how far it can go. Now people are being
arrested for watching a video. How much more repressive can they get?"

The MDC, which since September 2009 has been part of a coalition
government with Mr Mugabe's Zanu-PF, denounced the conviction: "The
six are innocent victims of a barbaric and senseless Zanu-PF
dictatorship. It is beyond belief for the state to assume that people
can topple a government by simply viewing old video footage of events
from Tunisia and Egypt."

Torture claims: 'We were beaten with planks'

Munyaradzi Gwisai, the lead accused, is one of the harshest critics of
the political parties governing Zimbabwe.

In an interview with The Independent before yesterday's verdict, the
44-year-old law lecturer at the University of Zimbabwe accused both
the MDC and Zanu-PF of favouring market interests at the expense of
the poor.

"Zimbabwe is under the boot of crony capitalism, run by an ageing
leader who employs populist rhetoric as well as partial nationalist
reforms – indigenisation, land reform – while at the same time running
an elite, class-based society. The MDC is favouring other interests
but not those of workers or of the poor," he said.

The six people convicted yesterday claim they were tortured after
their arrest. Gwisai said: "They needed us to admit to having said
'abasha Mugabe' – down with Mugabe – and I would say 'no, I never did.
So they put you on the floor and beat you five or ten times with a
plank, then ask the same question. They did this with each of us – I
lasted three or four rounds – until we finally confessed."

Conclusions

In Point of Fact, President Mugabe [since he wrestled a Bigger share
of the Zimplats] looks as unassailable as he ever has done. Aly-Khan
Satchu

read more


Mombasa tea auction poised for change MarketWatch
Commodities

MOMBASA, Kenya (MarketWatch) — In a whitewashed room in old Mombasa,
its windows frosted with age, Tom Muchura is working his way through a
seemingly endless line of teacups. He slurps each reddish-brown brew
in turn, gives it a quick swirl around his mouth and spits into a
giant steel spittoon.

He will taste around six hundred teas, Muchura said one recent
afternoon while taking a break from the tasting, which he uses to
prepare for the city’s famed weekly tea auctions.

“A good tea is said to be bright,” he said. “In this case, brightness
is in the cleanness of the cup. Strength is the heaviness of the cup.
You’re talking about aroma, you’re talking about flavor. One is able
to actually pick the difference between each and every cup.”

“And as much tea as I taste during the week”, Muchura said with a
smile, “I still drink about eight cups a day.”

Just like a wine merchant, Muchura’s business rests on his highly
refined taste buds. He has been in the tea industry for over 40 years,
and his company, Africa Tea Brokers, sells 20 percent of the tea
auctioned off in Mombasa, where around 380,000 tons of tea are moved
every year. In 2011, Kenya was the third-largest producer of tea in
the world, after China and India, according to data from the
International Tea Committee reported by World Tea News.

Mombasa’s tea auction, which dates back to colonial times, is poised
to abandon the decades-old open-outcry system that has seen it rise to
the top of the international tea scene and replace it with an entirely
electronic auction by 2013. The new system is meant to increase
efficiency and boost Mombasa’s already high profile in the tea world.
But the change will sweep away decades of tradition, and some fear the
city isn’t ready for such a dramatic shift.

The auction itself takes place in an elegant building in the center of
town, across the street from Muchura’s office. Here, around 70 buyers
gather every Monday and Tuesday to purchase tea from nine East African
countries. Once, the tea from this part of the world would have been
destined for British parlors, but now the bulk of it goes to Muslim
countries including Egypt and Pakistan.

“Pakistan looks for very high quality teas — these are teas grown by
the small scale farmers, high quality and very expensive,” said buyer
Aweys Mohamed of Juja Coffee Exporters, which sells primarily to the
Muslim market. “In Egypt it’s a blend — we’re mixing high quality teas
and low quality and medium, so you’re averaging the price out.”

East Africa’s tea is sold by the kilogram, with premium tea so far
this year selling at around $2.85 per kilo in Mombasa. Both brokers
and buyers do their tasting in advance, so that by the time they step
into the elegant, mahogany-trimmed auction room they have a sense of
what the price should be.

Neckties and decorum

The auction is steeped in old-world gentility. Etiquette is strict —
neckties for the brokers, or auctioneers; smart collared shirts for
the buyers (the vast majority of whom are men). They address one
another as “sir”, accepting an offer with “yes sir!”, and despite the
absence of microphones, you’ll rarely hear anyone raise his voice.

“Every year we have a workshop on etiquette and decorum in the auction
room”, said Geoffrey Rimbere, the auction’s manager. “You can’t use
language which is not acceptable there, or behave in a manner which is
abnormal. That’s the culture up here. Even if you don’t get the tea,
you still have manners.”

But once the electronic auction is introduced, Rimbere said, buyers
and brokers will no longer be meeting every week to sip tea and haggle
over prices, as they have since the 1950s. Soon all the buying will be
done on computer screens.

The switch should improve transparency and save on warehousing costs,
allowing tea to be shipped immediately without waiting in Mombasa to
be sold. “In the world today, if you don’t change you’ll be left
behind,” said Rimbere. But the e-auction has detractors. Most of the
buyers, Rimbere admitted, are against it.

East Africa’s tea industry dates back to 1903, when a European settler
planted the first bush in Kenya. Although 62% of the region’s tea is
still grown by small-scale farmers, the auction today moves more black
tea every year than any other auction house in the world. The biggest
buyer in Mombasa is Cargill, buying for Lipton, but other major
players include Global Tea, Van Rees and James Finlay.

“Mombasa is the biggest auction center, and the only center dealing in
multi-origin teas,” said Peter Kimanga, chairman of the East African
Tea Trade Association, adding that the East African region provides
around 20 percent of the world’s exports. “We are strategically
placed, particularly to Asia, which is one of the largest
tea-consuming areas. If Mombasa rises, all the other auctions will
rise.”

But, he added, the opposite is also true — Egypt’s revolution last
year sent world tea prices plummeting, as Egyptian orders from Mombasa
dried up.

“Our market portfolio is quite narrow”, said Kimanga. “We’ve got about
five countries taking about 75% of our tea. So when any of those
countries get into a problem, you get ripple effects here.”

There are several reasons for Mombasa’s prominence in the tea world,
not least of which is the fact that tea can be grown in East Africa
year round. Unlike India, East Africans don’t drink much tea, and are
able to export 95% of their crop. Then there is Mombasa itself — the
city boasts a busy port with the capacity to export large quantities
of tea, saving buyers the cost of overland transport.

Dan Bolton, editor of World Tea News, said the Mombasa auction’s
profile is also bolstered by the consistent quality and large quantity
of the tea sold there.

“The tea marketed in the Mombasa auctions consistently brings among
the highest pries of any tea in the world,” he said.

Kimanga said another point in Mombasa’s favor is that other tea
auctions are carried out in local currency, which can be confusing for
international buyers. “We trade in dollars, which lets buyers easily
understand the price dynamics”, he said.

Growing demand

Demand for East African tea has been steadily rising since the 1960s.
Tea, cut flowers and tourism are the country’s top foreign exchange
earners. The region’s staple is black tea, but growers are expanding
to include white tea, green tea and even a new purple tea for the
Japanese market.

Looking back on his 40 years selling tea, Muchura said the explosive
growth of the industry is the most significant change he has
witnessed.

But, he said, the transition to electronic auctions won't be an easy
one. “By nature I’m conservative, and I’ve known the tea industry in
that form all my life”, he said. “As a broker, I am able to tell
whether a buyer probably has an extra cent or so, because I can see
him, I can see his body language. That physical presence is
important.”

“We will miss the way we have operated in the past”, he added. “But
because of the volumes that we are having to trade with, I think it is
only natural that this change comes about.”

read more


Africa on the Move The Modern Warrior Aljazeera
Africa

More and more people across Africa are streaming toward the
continent's cities, hoping to invent new lives in the bustling urban
centres.

Perhaps no one understands the fragile intersection between
traditional and modern life better than Moses ole Samante, who moved
to Nairobi, the Kenyan capital, in 2005.

Moses is an ambitious Maasai tribesman who left his village to make it
in the big city and now runs his own successful safari business, but
works hard to maintain his village ties - supporting his family and
the Maasai community in his village.

"It was my dream that I can be able to make it and do something good
because I see the community is looking out for me," he says.

"Actually I was robbed on the first day when I came to Nairobi. I was
a little bit afraid, but then I said [to myself] like a warrior
surviving inside the lion and inside the elephants, I must survive in
the city for me to be capable of achieving what I wanted in my life.
But sometimes wearing the suit I become so much tired .... There is
two Moses' inside me: The Nairobi Moses and the Maasai Moses."

Conclusions

I remain Bullish on Tea Prices and the Listed Tea Companies at the
Nairobi Securities Exchange.

read more


Carbacid reports H1 PBT +34% Results Earnings here
N.S.E Equities - Industrial & Allied

Par Value:                  5/-
Closing Price:           92.50
Total Shares Issued:         33,980,000
Market Capitalization:        0
EPS:             8.89
PE:                 0.000

52wk Range:     85.00 - 150.00     
1-Yr Rtn:     -28.80%

H1 2011 versus H1 2010
Turnover 473.658m versus 290.615m +63%
Profit Before Tax 257.232m versus 191.905m +34%
PAT 174.832m versus 136.905m
EPS 5.15 versus 4.03
Interim Dividend 3 Shillings Per Share

Conclusions

Company citing the Penetration of New Export Markets as having been
the Keny driver.

Swot Analysis FY to July 2011 versus to July 2010
Turnover 576.092m 620.083m
PBT 374.21m versus 438.041m
PAT 302.195m versus 307.392m
Final Dividend 3.00 per share Interim was 2.00.
EPS 8.89 versus 9.05

read more


Masai Dance #Fairmont Mara #Kenya #Africa Video
Africa

The #Masai Chief whose shared his Perspective on Cows and Marriage Twitpic
http://www.twitpic.com/84uywk

A Masai Chief's Perspective on Cows and Marriage VIDEO
http://www.twitpic.com/83v7pa

Zebras in The Mara Twitpic
http://www.twitpic.com/84drnk

Nairobi Twitpic
http://www.twitpic.com/85zwd4

read more



Applications for speakers for the TED Worldwide auditions in Nairobi
Africa

TED2013 will be "The Young. The Wise. The Undiscovered."

read more



 
 
N.S.E Today

The NSE20 closed 32.11 Points lower to close at 3285.81.
The Nairobi All Share fell 1.07 points to close at 71.64.
Market Cap was 914.291b versus 927.974b.
Equity Turnover was 426.34m with Equity Bank trading 57.809% of that.
The Index was impaired by an 8% Ex Dividend Mark Down on low volume of EABL.
The Shilling was last trading at 82.70.



N.S.E Equities - Commercial & Services

SAFARICOM

shares volume 517,200
Total turnover     1,606,530
avg price     3.11 Closing Price 3.10 Unchanged
high price     3.15
low price     3.10
last price     3.10

Conclusions

Safaricom closed unchanged at 3.10 and traded 517,200 shares.
Safaricom has a 56 versus 9 Demand Supply Imbalance and the low Volume
confirms the Fact that Sellers are patently exhausted at this Price
Point.

Kenya Airways fell 3.01% to close at 14.50 and traded 96,800 shares.
Kenya Airways traded shares at 14.00 and the Daily Limit down for a
great deal of todays Session.

Uchumi firmed 1.587% to close at 9.60 and traded 301,500 shares.

Sameer slumped 6.4102% to close at 3.70 and traded 57,300 shares.
Sameer has retreated 17.045% in 2012 and sits 4.166% above an All Time
Closing Low.

Access Kenya closed unchanged at 4.20.



N.S.E Equities - Finance & Investment

Equity Bank was the most actively traded share at the Exchange in
todays session and firmed 0.9666% to close at 17.45 and traded a
17.00-17.50 range and 14.098m shares [0.3807% of its shares] worth
246.573m, which was 57.809% of the Total Volume transacted at the
Exchange today. Equity Bank has retreated 24.29% 12 Months through
today, Equity Bank closed at a 4 Month High of 18.60 on 7th March
ahead of its FY 2011 Earnings Release where FY 2011 PAT increased
+44.785955%. 7th March through Today Equity Bank has retreated 5.913%.
Equity Bank trades on a 6.2544 FY 2011 PE Multiple and a Price to Book
of 1.8899.

Equity Bank share Price Data and FY 2011 Results here
http://j.mp/1tAg4B

FY 2011 versus FY 2010
PAT 10.325157b versus 7.131325b +44.785955%
EPS 2.79 versus 1.93 +44.559585%
PAT H1 was +57.38% Q3 2011 was +42.284% and FY 2011 was +44.785955%.

Kenya Commercial Bank traded 3rd. KCB rallied 1.22% to close at 20.75
and its Weighted Average was 20.97 and KCB was trading at 21.50 +4.88%
Session Highs at the Closing Bell. KCB traded 1.706m shares worth
35.79m. KCB has rallied 23.145% in 2012 outpacing the NSE 20 by more
than 2,000 Basis Points. KCB accelerated FY PAT +52.98%.

Kenya Commercial Bank share Price Data and FY 2011 Results here
http://j.mp/bshUrX

PBT 15.129374b versus 9.797971b +54.413%
PAT 10.981046b versus 7.177973b +52.98%
Earnings per Share 3.72 versus 2.76 +34.782%

It was a Strong Session for the Insurance Companies.

Jubilee rallied 4.52% to close at 185.00 and traded 2,200 shares.
Jubilee has rallied 19.3548% in 2012.
PanAfric rallied 6.25% to close at 25.50 and traded 43,800 shares.
CFC Insurance rallied 4% to close at 7.80.
Kenya Re closed unchanged at 7.25.

National Bank of Kenya slumped 8.8777% to close at 17.45 and traded
18,400 shares. NBK has corrected 12.4077% lower since releasing its FY
Results where FY 2011 Profit After Tax declined -23.532% to 1.546113b
and Earnings Per Share declined 23.684%. NBK has slumped 55.13% 12
months through today.



N.S.E Equities - Industrial & Allied

BAT traded 2nd at the Exchange. BAT firmed 0.33% to close at 308.00
and traded 328,900 shares worth 101.3m. BAT has posted a 19.8% 1 Year
Return and Investors will further juice that Return with a Final
Dividend of 27 shillings a share which is worth a further 8.766% of
Return at todays Closing Price. BAT sits 5.52% beneath its Record
Closing High of 326.00 from March 1st 2012.

BAT Kenya share Price Data and FY 2011 Earnings here
http://j.mp/aJsT6n

FY Results 2011 versus FY Results 2010
Revenue 20.138b versus 13.539b
Profit Before Tax 4.484b versus 2.722b +64.731%
PAT 3.098b versus 1.767b +75.32%
Dividend 3.050b Thats an Outlier when it comes to its Dividend Pay out
Ratio which is 98.46%.
EPS 30.98 versus 17.67 +75.32%
Final Dividend 27 shillings a share

Carbacid reported H1 2011 Earnings before the Opening Bell. Carbacid
cited increased Penetration of Export Markets as having led to a 63%
Increase in Turnover and a 34% Acceleration in Profit Before Tax.
Carbacid rallied 7.027% to close at 99.00 and traded 4,900 shares.
Carbacid remains -29.52% 12 Months through today.

Unga rallied 6.67% to close at 9.60 and traded 87,700 shares which is
about 1,500% higher than its Daily Volume Moving Average. Unga has
posted a 6.66% Return in 2012 and Unga trades on a PE of 2.6891.

EABL was marked down 8% to close at 184.00 on volume of 3,000 shares
worth 554,000 shillings which is $6674.00 worth of Business. EABL went
ex Dividend today. The Interim Dividend is worth 2 Shillings and 50
cents, the share price corrected lower by 640% more than the Dividend
which is a Plain extraordinary Outcome.

EABL share price data and H1 Earnings here
http://j.mp/57wrgL

Profit After Tax 4.877b versus 4.152b +17.461%
Earnings Per Share 5.55 versus 4.03 +37.71%

KenGen eased 1.36986% to close at 7.20. KenGen has retreated 14.79%
through 2012 and has retreated 48.33% 12 Months through today.



by Aly Khan Satchu (www.rich.co.ke)
 
 
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March 2012
 
 
 
 
 
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