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Satchu's Rich Wrap-Up
 
 
Monday 25th of June 2018
 
Morning,
Africa

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Normal Board - The Whole shebang
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The Iranian rial plunged to a record low against the U.S. dollar on the unofficial market on Sunday, @Reuters
Africa


The dollar was being offered for as much as 87,000 rials, compared to
around 75,500 on Thursday, the last trading day before Iran’s weekend,
according to foreign exchange website Bonbast.com, which tracks the
unofficial market.

Iran’s semi-official news agency ISNA said the dollar had climbed to
87,000 rials on Sunday from about 74,000 before the weekend on the
black market, and several Iranian websites carried similar reports.

The currency has been sliding for months because of a weak economy,
financial difficulties at local banks and heavy demand for dollars
among Iranians who fear the pullout by Washington from the nuclear
deal and renewed U.S. sanctions against Tehran could shrink the
country’s exports of oil and other goods.

The fall of the national currency has provoked a public outcry over
the quick rise of prices of imported consumer goods.

Merchants at the mobile phone shopping centers Aladdin and Charsou in
central Tehran protested against the rapid depreciation of the rial by
shutting down their shops on Sunday, the semi-official news agency
Fars reported.

A video posted on social media showed protesters marching and chanting
“strike, strike!” The footage could not be authenticated independently
by Reuters.

Hours later, Information and Communications Technology Minister
Mohammad Javad Azari-Jahromi said on Twitter that he visited the
protesting merchants.

“I will try to help provide hard currency for (mobile) equipment
(imports),” Azari-Jahromi wrote, adding: “The merchants’ activity has
now gone back to normal.”

Conclusions

Financial Warfare.

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Home, by Warsan Shire (British-Somali poet)
Africa


no one leaves home unless
home is the mouth of a shark.
you only run for the border when you see the whole city running as well.
your neighbours running faster
than you, the boy you went to school with who kissed you dizzy behind
the old tin factory is
holding a gun bigger than his body, you only leave home
when home won't let you stay.
no one would leave home unless home chased you, fire under feet,
hot blood in your belly.
it's not something you ever thought about doing, and so when you did -
you carried the anthem under your breath, waiting until the airport toilet
to tear up the passport and swallow,
each mouthful of paper making it clear that you would not be going back.
you have to understand,
no one puts their children in a boat unless the water is safer than the land.

who would choose to spend days and nights in the stomach of a truck
unless the miles travelled
meant something more than journey.
no one would choose to crawl under fences,
be beaten until your shadow leaves you,
raped, then drowned, forced to the bottom of
the boat because you are darker, be sold,
starved, shot at the border like a sick animal,
be pitied, lose your name, lose your family,
make a refugee camp a home for a year or two or ten, stripped and
searched, find prison everywhere
and if you survive and you are greeted on the other side with go home
blacks, refugees
dirty immigrants, asylum seekers
sucking our country dry of milk,
dark, with their hands out
smell strange, savage -
look what they've done to their own countries, what will they do to ours?
the dirty looks in the street
softer than a limb torn off,
the indignity of everyday life
more tender than fourteen men who look like your father, between
your legs, insults easier to swallow than rubble, than your child's body
in pieces - for now, forget about pride your survival is more important.
i want to go home, but home is the mouth of a shark home is the barrel
of the gun
and no one would leave home
unless home chased you to the shore unless home tells you to
leave what you could not behind, even if it was human.
no one leaves home until home
is a damp voice in your ear saying leave, run now, i don't know what
i've become.

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Turkish voters gave President Recep Tayyip Erdogan a decisive victory in national elections on Sunday @nytimesworld
Law & Politics


Turkish voters gave President Recep Tayyip Erdogan a decisive victory
in national elections on Sunday, lengthening his 15-year grip on power
and granting him vastly expanded authority over the legislature and
judiciary

read more







Currency Markets at a Glance WSJ
World Currencies


Euro 1.1651
Dollar Index 94.52
Japan Yen 109.49
Swiss Franc 0.9878
Pound 1.3260
Aussie 0.7423
India Rupee 68.065
South Korea Won 1115.75
Brazil Real 3.7854
Egypt Pound 17.8715
South Africa Rand 13.4579

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Broken parabolas typically collapse in phases w/blistering rallies in between. Bitcoin is among the canaries in the coalmine @hussmanjp
World Currencies


Broken parabolas typically collapse in phases w/blistering rallies in
between. Bitcoin is among the canaries in the coalmine of temporary
speculative "wealth" born of deranged monetary policy. Already at 1/3
of its peak, losing another 50% would be nothing

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Turkey currency reserves have plunged below $80bn, lowest since 2012
Emerging Markets


Turkey currency reserves have plunged below $80bn, lowest since 2012
and below critical level to cover short-term debt ($181bn) and current
account deficit (almost 6% of GDP).

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Abraaj, a private-equity firm, files for provisional liquidation
Emerging Markets


UNTIL recently the Abraaj Group, a private-equity firm based in Dubai,
was riding high. It was one of just a few such firms focused on
emerging markets, and a darling of “impact investors”, who seek social
or environmental returns, not just financial ones. Assets under
management of $13.6bn made it the largest private-equity firm in the
Middle East, and the 42nd-largest globally in 2017. Its Pakistani
founder and boss, Arif Naqvi, a regular at Davos and a patron of the
arts, had won awards for philanthropy. It is all the more surprising,
then, that basic corporate-governance missteps led his firm to file
for provisional liquidation on June 14th.

The problems began in late 2017 when four investors in its $1bn
health-care fund, including the Bill & Melinda Gates Foundation and
the private-sector arm of the World Bank, grew worried. Nearly $280m
of $545m they had been asked for was not promptly spent on
acquisitions, as is standard in the industry. Abraaj blamed delays in
the construction of hospitals in Pakistan and Nigeria. The investors
asked for proof that the funds had not been misspent; unsatisfied,
they hired a forensic auditor to comb through Abraaj’s accounts.

News of the investigation broke in February. Later that month Abraaj
ceased investing and Mr Naqvi stepped down from the fund-management
unit. The firm stopped raising money for its newest fund and released
investors from $3bn already committed. A review by Deloitte, an
auditor, concluded that it had covered its own expenses with
investors’ money from the health-care fund and another. The money was
replaced in the health-care fund, but the other fund was left short of
$95m.

Even before the review was finished, Abraaj had started looking for
buyers for its fund-management arm, hoping to use the proceeds to pay
off its creditors. But some grew impatient. On May 22nd Kuwait’s
social-security fund filed a petition in a court in the Cayman
Islands, where Abraaj is incorporated, seeking to force it into
bankruptcy proceedings. In response Abraaj filed for provisional
liquidation, akin to America’s Chapter 11 proceedings, to give it
greater control over its restructuring.

Abraaj’s downfall is highly unusual. Debt is generally taken on by the
individual funds run by private-equity firms, or the companies that
those funds own, rather than by the firms themselves. Ludovic
Phalippou of the Saïd Business School at Oxford University says he
cannot recall any other private-equity firm declaring bankruptcy.

A charismatic boss can sometimes lull investors in a private-equity
fund into complacency. Although they will carefully scrutinise any new
fund-management company, when it comes to established ones they
typically focus their due diligence on the individual funds it runs.
And they may gloss over the fine print in agreements that govern
relations between investors and funds, says Sunaina Sinha of Cebile
Capital, a placement agent that helps private-equity firms find
investors. Abraaj’s actions seem not to have broken its agreements
with investors. Its collapse highlights the need for vigilance,
especially when it comes to fashionable asset classes and fast-growing
firms.

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Khir Ganga, Himachal Pradesh, India
Emerging Markets


Starting from the village of Barsheni in the gorgeous Parvati Valley,
it takes about 3-4 hours to hike up to these hot springs. But it is
well worth the time and effort it takes to reach Khir Ganga—a meadow
where Hindu god Shiva is said to have meditated for 3,000
years)—especially when you get to immediately bathe in the pools and
take in surrounding views of the Himalayas.

Frontier Markets

Sub Saharan Africa

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Abiy later described the explosion as a "well-orchestrated attack", but one that failed.
Africa


“A few Ethiopians were injured. There are a few people who lost their
lives,” he said in a televised address. “Love always wins. Killing
others is a defeat. To those who tried to divide us, I want to tell
you that you have not succeeded.”

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"Building an independent nation is not the same as building a free society" HE PM Abiy
Africa


“Building an independent nation is not the same as building a free
society. What good is a free country, if we don’t enjoy freedom? If we
are not free from fear? If we don’t have freedom of speech &
expression? If we build dividing walls rather than bridges?” HE PM
Abiy

read more


#Ethiopia PM Abiy Ahmed addresses a massive rally in Addis Ababa, showed up at the march wearing a t-shirt with a map of Africa and Mandela's famous "power" salute @OPride
Africa


#Ethiopia PM Abiy Ahmed addresses a massive rally in Addis Ababa,
organized to show support for his reform agenda. He showed up at the
march wearing a t-shirt with a map of Africa and Mandela's famous
"power" salute.

read more



Ethiopia's Mandela steps up pace of change - but provokes enemies @FT @davidpilling
Africa


Abiy Ahmed, Ethiopia’s youthful prime minister, may be the most
popular politician in Africa but he has also made enemies. On
Saturday, at a huge rally in Addis Ababa, an explosion that may have
been intended to kill him left two dead and 156 people injured, five
of them critically.

No one took responsibility for the blast and Mr Abiy did not try to
pin the blame on anyone. “To those who tried to divide us, I want to
tell you that you have not succeeded,” he said.

Analysts said perpetrators of the explosion, which occurred after Mr
Abiy ended an address to tens of thousands of supporters in Meskel
Square, could have been disgruntled members of the security forces.
Their power is threatened by the sweeping reforms Mr Abiy has launched
since becoming premier in April.

There was also speculation that his peace overtures to Eritrea, in
which he said Ethiopia would give up its claim to disputed land, might
have triggered the attack.

Mr Abiy came out of the blocks so fast in his first few weeks in
office that few believed he could maintain the pace. But, if anything,
the 42-year-old former army officer has stepped it up.

Since being appointed just more than two months ago, Mr Abiy has
overseen the release of thousands of political prisoners, ended a
state of emergency that was imposed to quell two-and-a-half years of
deadly anti-government protests, and announced an economic
liberalisation plan, including partial sale of state telecom and
airline assets.

More recently, he has has reorganised the once-untouchable
intelligence services and admitted publicly that the authoritarian
government has committed acts of torture and terrorism on its own
people.

He is our Barack Obama, Justin Trudeau and Nelson Mandela all in one

His charm offensive in the Gulf also appears to have borne fruit. The
United Arab Emirates agreed last week to provide $3bn in badly needed
loans and investments to ease a chronic foreign exchange shortage.

“He is our Barack Obama, Justin Trudeau and Nelson Mandela all in
one,” enthused Addis Alemayehou, an Ethiopian media consultant,
echoing the sense of euphoria that has accompanied the elevation to
power of Africa’s youngest leader.

That, say analysts, has raised expectations that Mr Abiy can transform
the political and economic landscape. But it has also prompted
concerns of a political backlash from within the ranks of the ruling
Ethiopian People’s Revolutionary Democratic Front.

Over the 27 years the EPRDF has been in power, Ethiopia has won
plaudits in the west for its rapid development, including official
growth rates approaching 10 per cent. But it has been severely
criticised for rights abuses.

Ethiopian politics remains opaque but, say analysts, there are hints
of discontent within the ruling four-party coalition, whose 180
council members are far from unanimously behind Mr Abiy. There are
already signs, for example, of an attempt to roll back his plans to
sell off state assets.

“There’s a risk of getting ahead of ourselves because he’s only been
in power for two months,” said Ahmed Salim, vice-president East Africa
of Teneo Intelligence, a US-based think-tank. Mr Salim pointed to the
huge gamble Mr Abiy was taking in challenging the security forces and,
especially, in making concessions to Eritrea.

Isaias Afewerki, Eritrea’s president, said last week he would send a
delegation to Addis to discuss a peace deal.

The unexpected appointment of Mr Abiy, a relative unknown from the
majority Oromo group, followed an internal crisis within EPRDF after
it failed to contain protests. The Oromo, who make up 35 per cent of
the population, have led a popular rebellion against the government,
which was dominated by Tigrayans, who comprise 6 per cent of
Ethiopians.

Mr Abiy’s reorganisation of the Tigrayan-led army and intelligence
services — seen by many as the real locus of power — has convinced
sceptics that the new leader represents a genuine power shift. The
replacement army chief is still a Tigrayan, but the new head of
intelligence is from Amhara, the region that has historically held
most power and has also experienced political unrest.

“Those are institutions that needed changing,” said Awol Allo, an
Ethiopian law lecturer at Keele University in the UK, referring to the
army and the intelligence apparatus. “He's demonstrating a fierce
desire to shake up the system.”

Mr Awol said it was possible that members of what he called the
“Tigrayan deep state” were responsible for Saturday’s explosion, but
added that it was impossible to know.

Opposition forces, including in Amhara, have seized the moment by
setting up political parties in anticipation of what they hope will be
free elections in 2020.

Mr Abiy has received plaudits for condemning the EPRDF for what he
said were rights abuses. Last week, he told parliament the
constitution did not allow “people to be flogged, to be injured, to be
kept in dark rooms”.

Befeqadu Hailu, an activist and former political prisoner, welcomed Mr
Abiy’s admission of state torture. “The regime has lived in denial,”
he said. “A former detainee who said he was tortured told me he cried
when he heard the prime minister.”

Mr Befeqadu added that, while Mr Abiy’s instincts were good, he feared
a pushback from vested interests being challenged. To consolidate
change, he said, Ethiopia needed “institutional reform and the repeal
of key laws”.

Without that, he said: “widening democratisation cannot happen”.

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Phenomenal @PM_AbiyAhmed is the new kid on the block in African politics and the soon-to-be new darling of the African Youth
Africa


Phenomenal @PM_AbiyAhmed is the new kid on the block in African
politics and the soon-to-be new darling of the African Youth, un peu à
la Thomas Sankara but this time a market-friendly one.

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"The TPLF clique ... are dumbfounded by the ongoing changes. And, as they know full well that their game has come to an end" - President Isaias Afwerki
Africa


"The TPLF clique ... are dumbfounded by the ongoing changes. And, as
they know full well that their game has come to an end, they will not
refrain from concocting various machinations to obstruct any change
and to mollify their wayward appetite." - President Isaias Afwerki

read more


Prime Minister Abiy Ahmed is moving so fast everything around him looks static and wooden
Africa


Prime Minister Abiy Ahmed is moving so fast everything around him
looks static and wooden Matters #Ethiopia  "The ppl of Tigray are
still begging for a drop of water; TPLF [the party[ is not the people
of Tigray"

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Zimbabwe's president calls for peace after stadium blast attack
Africa


“The campaign has so far been conducted in a free and peaceful
environment, and we will not allow this cowardly act to get in our way
as we move towards elections ... Let us continue to be united and
address our differences peacefully. The strongest response to violence
is peace. The strongest response to hate is love,” Mnangagwa’s
statement read.

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VIDEO - Explosion at #ZanuPF rally in Bulawayo today where @edmnangagwa addressed. There is speculation of an assassination attempt on the president
Africa


VIDEO - Explosion at #ZanuPF rally in Bulawayo today where
@edmnangagwa addressed. There is speculation of an assassination
attempt on the president & fear this could be used as an excuse to
unleash violence ahead of elections.

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President Emmerson Mnangagwa says he's not shaken. "It's not my time. Those who have done it are likely to go before me."
Africa


President Emmerson Mnangagwa has commented for the first time on the
bomb blast at White City Stadium which narrowly missed him as he
exited the VIP stage. He says he’s not shaken. “It’s not my time.
Those who have done it are likely to go before me.”

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via Trevor Ncube
Africa


A. I have been working the phone over the past 90 minutes. This is
what I can share
1. Intelligence/police ruling out MDC as a source of Bulawayo
explosion. MDC clearly don’t have capacity.
2. Militant activists in Bulawayo have been questioned and ruled out
B. Second suspicion is Robert Mugabe sympathizers. Did they do this.
Do the G40 elements ie @ProfJNMoyo who have threatened civil war have
capacity.  Perhaps.
C. There is strong sense that there is a military element that does
not want to see peaceful elections. Elections would give electoral
mandate to ED and weaken role of military. So why have elections? This
element rules out MDC victory
D. A section of military believes ED will remove Constantine Chiwenga
as VP after elections. A real coup might be in the making. The talk of
ED impeachment is not an urban legend. Military on a shopping spree.
E. There is real tension between ED and Chiwenga. The fight between
Marry Chiwenga  and Auxillia Mnangagwa is real and a reflection of
real state and institutional instability in Zimbabwe. Instability was
being contained.
F. Did Chiwenga do this? Those close to him say if it was him it would
not have been this clumsy. Was this a decoy?Food for thought. Pray for
Zimbabwe . #NoToViolence

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The first quarter of 2018 was characterized by increased Eurobond issuance, with a total of USD 10.7 bn being raised in Africa in the period @CytonnInvest
Africa


The first quarter of 2018 was characterized by increased Eurobond
issuance, with a total of USD 10.7 bn being raised in Africa in the
period, compared to a pro-rated USD 4.5 bn raised in Q1’2017.

The first 5 months of 2018 have been characterized by 5 Eurobond
issuances by Sub-Saharan Africa (SSA) economies (Kenya, Nigeria,
Senegal, Ghana and South Africa), jointly raising USD 10.7 bn, with
two more countries (Tanzania and Angola) having announced plans to
raise foreign public debt through the same avenue this year. Last
year, USD 18.0 bn was raised in foreign public debt by economies in
Africa, and in the last 5 years, Kenya has had two separate issuances,
in 2014 and 2018. Other SSA countries like Ghana and Nigeria have also
had two issuances in the last 5 years, with countries like Tanzania
looking to make their debut in this space this year.

The first 5 months of 2018 were characterized by Eurobond issuance by
5 Sub Saharan African countries (Kenya: USD 2.0 bn, Nigeria: USD 2.5
bn, Senegal: USD 2.2 bn, Ghana: USD 2.0 bn and South Africa: USD 2.0
bn) and 6 in Africa as a whole (Kenya: USD 2.0 bn, Nigeria: USD 2.5
bn, Senegal: USD 2.2 bn, Ghana: USD 2.0 bn, South Africa: USD 2.0 bn
and Egypt: USD 4.0 bn), raising a total USD 14.7 bn, compared to USD
18.0 bn raised in the whole of 2017

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Naspers Frees Up Cash to Tap Flood of Investment Options
Africa


Naspers Ltd. has put aside the proceeds of share sales in Chinese
internet giant Tencent Holdings Ltd. and India’s Flipkart to pay for
new investments due to the abundance of opportunities in its preferred
media and technology markets.

Africa’s biggest company by market value raised HK$76.9 billion ($9.8
billion) in March by selling a 2 percent stake in Tencent -- its
flagship asset and by far the most lucrative. Naspers then netted a
$1.6 billion profit from the sale of a stake in Indian e-commerce
startup Flipkart to Wal-Mart Inc. in May.

“The reason why we freed up the money is that there is a lot of
opportunity to invest at the moment in our core growth sectors: Food
delivery, classified or in our payments business,” Chief Executive
Officer Bob Van Dijk said in a phone interview Friday, after Naspers
reported a 72 percent rise in full-year earnings. “That is where the
bulk of the money will be invested in.”

The South African company has long relied on its stake in fast-growing
WeChat creator Tencent to accelerate profit growth, yet its myriad
investments in newer online companies around the world are beginning
to bear fruit. Classifieds businesses in Brazil and Russia helped to
generate the first-ever profit at the division -- when U.S. app Letgo
is excluded -- while Naspers is working to improve profitability at
Africa’s largest pay-TV provider.

To further reduce the discount to its Tencent stake, Naspers is making
progress in considering different structural changes to the business,
including the separate listing of certain business units, said Van
Dijk.

A recent new investment was the $89 million spent last month on
Berlin-based Frontier Car Group -- a vehicle-sales company that
operates both online and out of physical lots. “People want an easy,
hassle-free way to sell their cars,” Van Dijk said. “The model is
being replicated by Frontier Cars in Africa, Latin America and Asia.
There have to be local tweaks to make it work, but the concept is a
very good one.”

Core headline earnings per share, which exclude one-time items, were
$2.5 billion in the year through March, Cape Town-based Naspers said
in a statement Friday. The company raised the dividend by 12 percent
to 6.50 rand a share.

The shares gained 3.1 percent to 3,315.27 rand by the close in
Johannesburg, the biggest rise since June 1, giving a market value of
1.5 trillion rand ($111 billion).

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Why are you killing the Goose that is laying the golden eggs?
Africa


Safari com's M-Pesa is a ubiquitous viral Phenomenon, MPesa dialled
Kenya Inc. up onto the Global Radar with even Bill Gates tweeting

''Kenya’s M-Pesa proves that when people are empowered, they will use
digital tech to innovate on their own''

MPesa was in fact co-funded by DFID's Financial Deepening Challenge
Fund (FDCF) and Vodafone some eleven years ago and went viral from the
Get-Go. I remember vividly being in Michael Joseph's Office at the
time of the M-Pesa Launch and him explaining it to me

''This is a sticky thing Aly-Khan''

Today, M-Pesa has 20.55m Customers and contributes $629m of Revenue to
Safaricom's FY Revenue $2.337b. Those numbers are startling and
parabolic but dig deeper and there is an extraordinary Story. The
original Need M-Pesa met was the need to circulate money within Kenya,
and serve a domestic remittance market, i.e sending remittances from
Nairobi and big urban centres back to the rural areas. Consider that
Total Mobile Money for January 2018 clocked $3.229b versus $0.484b in
January 2010. This M-Pesa/Mobile Money Economy was static before and
largely trapped in the form of ''Mattress'' money. M-Pesa is about
volume but also about velocity. The M-Pesa Economy has outstanding
velocity. Loans are being taken out in the early hours of the morning
and those same loans are being repaid in the evening of the same day.

''M-Pesa has been a growth engine. Whenever theres a cash transaction,
we see an opportunity. Transaction value in 2017 doubled. We are
building the ecosystem to monetise tomorrow'' said the Safaricom CFO
Sateesh Kamath. Monthly usage per customer is averaging 10.0
transactions per customer per month, i believe but I would really like
to dig into some higher frequency data.

MJ said ''In the last year alone, the service processed 6 billion
transactions, peaking at 529 a second in December 2016''

MIT research published a few years ago showed that, since 2008, access
to mobile-money services increased daily per capita consumption levels
of 194,000 — or 2 percent — of Kenyan households, lifting them out of
extreme poverty (living on less than $1.25 per day). But there’s an
interesting gender effect: Female-headed households saw far greater
increases in consumption than male-headed households. Not
surprisingly, households where agent density increased by five agents
— the average in the sample — also saw a 6 percent increase in per
capita consumption, enough to push 64 (or roughly 4 percent) of the
sampled households above poverty levels.  In line its social impact
vision Safaricom introduced M-PESA Kadogo, through which transactions
under KES 100 do not attract a service fee. I was at Kakuma Refugee
Camp a few weeks ago at a TEDx event organised by UNHCR and as I
strolled around I kept thinking to myself, what's changed? Then I
realised all these Folks are connected to the c21st, they have a
mobile internet and they have M-Pesa.

Today, M-Pesa Customers can now link their PayPal accounts to their
M-Pesa Wallets allowing someone in Kakuma Refugee Camp [for example]
to buy or sell services to Merchants anywhere in the World. I recall
Jack Ma saying [at a conference I was moderating in Nairobi]

''Its about Platform visibility. Without Visibility you are invisible.''

The M-Pesa Economy has made the invisible visible and it has given the
previously invisible the ability to transact anywhere in this World of
7b. It is a Phenomenon, its a grass roots miracle of democratisation
and economic liberation. This is something that Bob Collymore the  CEO
has always understood intuitively

"We target the one shilling," he says. "The banking sector across the
world has always ignored the so-called base of the pyramid. We haven't
because we understand that the base of the pyramid needs to be served
and there's also commercial viability in doing that."

Therefore, when i saw that the Treasury was dialling up the mobile
money excise Duty 200 basis points from 10% to 12% I asked myself

'Why are you killing the Goose that is laying the golden eggs?'' The
Mobile Money CAGR was 667%/8= 83.375% 2010 through 2018. Why not keep
encouraging its parabolic Trajectory and taking 10% of that fastest
growing Pie of any Pie I can find in Kenya Inc. Its a seriously
sub-optimal move. This is symptom of a reverse Darwinism Philosophy we
seem to be promoting, where we penalise Success.

So I am calling for an immediate reversal of this Excise Duty
increase. Its kindergarten economics, I am afraid. I am also calling
for a lifting of the daily M-Pesa Cap. It makes no sense anymore. Its
an artificial number which makes little sense in the context of a
cash-lite Economy and from a regulatory compliance perspective. M-Pesa
is prima facie more compliant than the banking system because of the
digital trail left by each transaction.

And My Final Thought is that Safaricom should be considering an M-Pesa
crypto coin.

read more







Kenya Shilling versus The Dollar Live ForexPros
Africa


During the week, the Kenya Shilling appreciated by 0.3% to close at
Kshs 100.8 from Kshs 101.1, the previous week, attributed to tightened
liquidity in the money markets that led to increased demand for the
local currency. On a YTD basis, the Shilling has gained 2.3% against
the USD

read more





The market is currently trading at a price to earnings ratio (P/E) of 14.0x, which is above the historical average of 13.5x, and a dividend yield of 3.9%, which exceeds the historical average of 3.7%. @CytonnInvest
Africa


The market is currently trading at a price to earnings ratio (P/E) of
14.0x, which is above the historical average of 13.5x, and a dividend
yield of 3.9%, which exceeds the historical average of 3.7%. The
current P/E valuation of 14.0x is 42.9% above the most recent trough
valuation of 9.8x experienced in the first week of February 2017, and
68.7% above the previous trough valuation of 8.3x experienced in
December 2011. The charts below indicate the historical P/E and
dividend yields of the market.

read more



Old Mutual is set to increase its stake in UAP Holdings The conversion is set to see Old Mutual increase its current stake of 60.7% in UAP Holdings, by 7.3% @CytonnInvest
Africa


Old Mutual is set to increase its stake in UAP Holdings in a deal to
convert a Kshs 2.7 bn loan into equity through its subsidiary Old
Mutual Holdings Kenya. The conversion is set to see Old Mutual
increase its current stake of 60.7% in UAP Holdings, by 7.3%. The
conversion will however dilute existing shareholders and Old Mutual is
set to have a combined stake of 63.5% after the dilution;

read more


The Kenyan Government issued a new 15-year Treasury bond (FXD 1/2018/25) for the month of June with the coupon set at 13.4%, in a bid to raise Kshs 40.0 bn @CytonnInvest
Africa


The Kenyan Government issued a new 15-year Treasury bond (FXD
1/2018/25) for the month of June with the coupon set at 13.4%, in a
bid to raise Kshs 40.0 bn for budgetary support. The overall
subscription rate for the issue came in at 25.3%, with the market
weighted average bid rate coming in at 13.7%, 20 bps above the average
accepted rate of 13.5%, and in line with our expectations of 13.4% -
13.7%. The government accepted Kshs 5.9 bn out of the Kshs 10.1 bn
worth of bids received, translating to an acceptance rate of 51.1%.
The government is set to embark on a new borrowing cycle soon with the
domestic target set at Kshs 271.9 bn (equivalent to 2.8% of GDP).

read more








 
 
N.S.E Today


The Iranian rial plunged to a record low against the U.S. dollar on
the unofficial market on Sunday.  The dollar was being offered for as
much as 87,000 rials, compared to around 75,500 on Thursday, the last
trading day before Iran’s weekend, according to foreign exchange
website Bonbast.com, which tracks the unofficial market. The US and
its Allies have already signalled they will pursue a coercive,
Financial Warfare strategy with respect to Tehran.
Chinese stocks closed at a Feb 2016 Low and on the cusp of a bear market.
Bitcoin touched 5,800.00 and a 2018 Low before recovering to trade at
6,150.00 Last.
Broken parabolas typically collapse in phases w/blistering rallies in
between. Bitcoin is among the canaries in the coalmine of temporary
speculative "wealth" born of deranged monetary policy. Already at 1/3
of its peak, losing another 50% would be nothing [re Bitcoin and via
@hussmanjp
The combined market cap of the 20 largest crypto coins at the end of
2017 is down over $290 billion year-to-date, a decline of 57%
WTI Crude Oil surged Friday in the aftermath of the OPEC meet.
Two attacks one in Addis Ababa and one in Bulawayo caught the World's attention.
“Love always wins. Killing others is a defeat. To those who tried to
divide us, I want to tell you that you have not succeeded.” said PM
Abiy Ahmed.
'' Let us continue to be united and address our differences
peacefully. The strongest response to violence is peace. The strongest
response to hate is love,” Mnangagwa’s statement read.
The first quarter of 2018 was characterized by increased Eurobond
issuance, with a total of USD 10.7 bn being raised in Africa in the
period, compared to a pro-rated USD 4.5 bn raised in Q1’2017. via
Cytonn.
Kenya’s Capital Markets Authority has put on a watchlist a number of
listed companies that are facing liquidity and corporate governance
issues, with the possibility of suspending and eventually delisting
them from trading.
The EastAfrican has learnt that at least eight firms listed on the
Nairobi Securities Exchange are facing liquidity and corporate
governance challenges that have seen their earnings drop
significantly.
The Equity Market was thinly traded.



N.S.E Equities - Commercial & Services


Safaricom firmed +0.88% to close at 28.50 and traded 2.724m shares
worth worth 78.216m. The Supply side was thin signalling 30.00 is very
''gettable'' in the near term.Buyers outpaced Sellers by a ratio of
2.5 to 1.



N.S.E Equities - Finance & Investment


KCB Group shaved off -1.55% to close at 47.50 and traded 733,000
shares. KCB trades on a PE Ratio of 7.387.

Centum was a bright spot and rallied +2.684% to close at 38.25 and was
trading session highs of 39.00 +4.7% at the Finale. Centum traded
349,300 shares with Buy Side Demand for 16x the volume traded at the
Finale. Centum reported a -63.769% slide in FY EPS. Some that Earnings
suppression was due to a sale of GenAfrica not being effected in the
reporting period.



N.S.E Equities - Industrial & Allied


KenolKobil
closed unchanged at 18.00 and traded 2.302m shares worth
41.446m. KenolKobil is +32.857% on a Total Return Basis in 2018 and
trades on a PE Ratio of 10.778.

KenGen
eased -0.71% to close at 7.00 and traded 237,800 shares.
KenGen's share price lags the business validation via JICA, AFD and
others.

--



by Aly Khan Satchu (www.rich.co.ke)
 
 
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June 2018
 
 
 
 
 
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