African capital markets and innovation key to achieving African agenda

“The time is now to stop aspiring to building and focus on ensuring the African financial markets are actually built.”

    Paul Muthaura CMA Kenya (photo The East African)

  • African capital markets are key to African development visions but governments must prioritize market finance structures over donor and government-to-government finance.
  • How to mobilize over $1trn of assets in pension, insurance and collective investment vehicles across sub-Saharan Africa
  • Innovation at the core of Kenya’s 10-year capital markets masterplan, including M-Akiba bonds, regulatory sandbox, mobile platforms for securities trading
  • Governments to provide conducive environments
  • Capital markets connectivity to allow free flow of capital across borders to fund critical infrastructure for Continental Free Trade Area

Here are extracts from the speech by Paul Muthaura, CEO of the Capital Markets Authority of Kenya, this morning at the 7th annual “Building Africa Financial Markets Seminar” in Nairobi.

Also present was HE William Samoei Ruto (Deputy President of Kenya), Oscar Onyema (President of African Securities Exchanges Association (ASEA) and Chief Executive Officer of the Nigerian Stock Exchange), Sam Kimani (Chairman of the Nairobi Securities Exchange) and Geoffrey Odundo (CEO of NSE).

“This conference also comes closely on the heels of the admission of the NSE to the World Federation of Exchanges which acknowledges the trajectory of our markets’ growth in recent years and reinvigorates us for the journey ahead as we seek to position the NSE as a globally competitive platform for wealth creation, a global cross roads for investment and risk management and a critical catalyst for economic transformation.

“The central role of deepening capital markets to finance infrastructure, business enterprise and overall economic development is increasingly a key pillar of policy makers’ agendas in Africa. For instance, the African Union (AU) Agenda 2063 prioritizes the development of capital markets on the continent to strengthen domestic resource mobilization and to double market-based financings’ contribution to development financing.

“Similar prioritization is found in several national visions including Nigeria’s FSS2020, Zambia’s Vision 2030, Rwanda’s Vision 2020, Uganda’s Vision 2040 and of course the Kenya Vision 2030. Over US$1 trillion in assets are currently held by pension, insurance and collective investment vehicles across sub-Saharan Africa so the challenge to us in this room remains how are we going to leverage these pools to crowd-in the significantly larger pools of global capital necessary to fund the meteoric rise of this continent.

Innovation

“Institutions or sectors that do not prioritize innovation are ultimately relegated to stunted growth, poor competitiveness and ultimately, redundancy. The very fact that we are all gathered here today affirms that as a continent we are committed to actively deliberating on proactively adapting to emerging innovations. To institutionalize this commitment to constructive innovation at a national level, the Authority was honoured to convene our sector and international partners to put in place the Capital Markets Masterplan (CMMP) – a 10-year strategic policy document that targets to stimulate innovation to broaden product and service offerings, deepen market participation and liquidity, and drive transformative economic development for Kenya and the wider region.

“Any conversation on innovation appears inseparable from a deliberation on the global efforts to continuously update business models in line with technological changes cutting across product/services design, infrastructure, access and supervision. To this last point, regulators are increasingly challenged to rethink their supervisory models to align regulatory requirements with market needs is a fast-changing environment.

“For some time now, Kenya has been sitting in a unique position as a bustling hub for impactful innovation, ranging from MPESA – a fast and convenient mobile money platform to M-Shwari – a mobile-based savings product. Not to be left behind, Kenya’s capital markets have through various initiatives have been angling to put the country on the global innovation map. These initiatives include;

  • The recent launch of M-Akiba – a mobile-phone-based retail government bond primary and secondary market investment platform,
  • The on-going efforts to establish a Regulatory Sandbox for Kenya’s capital markets to provide an ideal platform for testing of ideas/innovations/products/services etc. before they are rolled-out to the wider market; and
  • The development of a wide spectrum of mobile based platforms for securities trading.

“As a regulator cognisant of our dual mandate of regulation as well as development, the Authority has also operationalized principle-based approval powers to allow for the accelerated introduction of new products including exchange-traded Funds, GDR/Ns (global depository receipts) and asset-backed securities.

Right foundations

“It is critical, particularly given the nascent state of markets on most of the continent, that we do not lose sight of the critical importance to build our markets on the right foundations. In a world where we are eternally competing for highly mobile capital, we must prioritize the development and more critically the transparent enforcement of world class legal and regulatory frameworks; in pursuing innovation, we must not forsake robust market infrastructure that provides pre and post trade transparency and engenders confidence in settlement finality; we must ensure that the products and services being developed are actually relevant and responsive to the economic needs of our environment, resonate with the political priorities of our governments and strengthen the savings and investment habits of our citizenry.

“We must challenge our governments to provide conducive macro-economic, political and fiscal environments for markets to grow. Difficult as it may be, we must be willing to prioritize market-based funding models over traditional government-to-government and donor funding models. What appears concessionary today will likely be unsustainable tomorrow where the necessary market dynamics have not been built to support private sector growth and SME business as the engines for long-term sustainable economic growth and as a critical source of tax revenue to ensure debt service and sustainability.

“We must challenge our market intermediaries to raise their operational and technical standards to be able to support responsive product design and ethical practices, all parties need to come together to drive both issuer and investor education on the full spectrum of financing options available to them to ensure the supply side is as dynamic as the demand side’s need.

“We must challenge our domestic institutional investors to make the difficult decisions to diversify into appropriate market-based risk products that allow for effective asset-liability matching in place of traditional government debt and, needless to say, proactively work with government to consistently lower government borrowing rates in order to tackle the crowding-out effect all too common with the easy availability of double-digit risk-free assets.

“If we are to deliver robust African capital markets we must deepen the capacity of the complementary professionals, support independent auditor oversight, robust corporate governance and globally benchmarked certification standards.

“Introduction of REITS (real estate investment trusts), operationalizing collateral management and liquidity management tools like REPOs and securities lending and borrowing, Impending green finance, roll-out of Islamic finance, delivery of commodities exchange and warehouse infrastructure, derivatives markets to support hedging, online forex trading (FX CFDs), and leveraging fintech to support access and market growth, are all critical components in deepening and diversifying the capital markets that have received and continue to receive strong support from the government in partnership with market stakeholders.

Pan-African challenge

“With the introduction of the Continental Free Trade Area, it is for the capital markets to address pan-continental connectivity to allow for the free flow of capital across borders to fund the critical infrastructure necessary to support the free movement of goods and services under the free trade area. The time is now to stop aspiring to building and focus ensuring the African financial markets are actually built.

“As the capital markets regulator, we are keen on actively playing our role in positioning Kenya as an investment hub for East and middle Africa. By 2023, we envision Kenya as the choice market for domestic, regional and international issuers and investors looking for a safe and secure investment destination.”

For the full speech, see the CMA Kenya website.

Sub-Saharan Africa investment banking deals in Q1

Mergers and acquisitions (M&A) in sub-Saharan Africa in Q1 of 2018 at $4.7 billion were 63% down on a year earlier, according to investment banking analysis for sub-Saharan Africa by Thomson Reuters, but there were $2.7bn in equity follow-on issues and $13bn in debt issues. Rand Merchant Bank topped the ranking of investment banking earnings, gaining $10.3 million, 9.3% of the total $117.6m earned during the quarter.

Completed M&A generated 20% and equity capital markets 37% of the total fee pool. Thomson Reuters says equity and related issuance was at its highest since 2007.

Fees from completed M&A totaled $23.4m, a 57% decrease year-on-year, while equity capital markets underwriting reached $43.1m, the best start since 2007. Domestic and inter-SSA M&A totaled $483m, down 81% year-on-year and the lowest annual start since 2006. Inbound M&A is down 73%, driven by the lowest number of deals since 2004, while outbound M&A is on a six-year high, up 91% to $1.6bn. Most (93%) of the outbound M&A was by South African companies, while acquisitions by companies headquartered in Mauritius accounted for 6% and in Seychelles for 1% respectively. Citi topped the financial advisor table for Q1 2018 for announced M&A with “any sub-Saharan Africa involvement” with 7% market share.

The biggest deal of Q1, according to Thomson Reuters, was Milost Global Inc’s US$1.1bn leveraged buyout transaction to acquire the entire share capital of Primewaterview Holdings Nigeria through its African subsidiary Isilo Capital Partners, announced on 10 January.

All the equity capital markets activity in the region was follow-on offerings, with 14 transactions. It is the first time there were no primary equity issues since 2012. The biggest was a follow-on offering by PSG Group, followed by offers from Sanlam and Lafarge Africa. Standard Bank Group tops the SSA equity capital markets league table in Q1 2018 with a 26% share of the market, followed by Investec at 12% and PSG Capital Ltd at 11%.

Sneha Shah, Managing Director for Africa at Thomson Reuters, said: “The most active Sub-Saharan Africa equity capital markets sectors for Q1 2018 were financials followed by materials, real estate, industrials, retail, and consumer staples.”

The most active debt issuer nation was Côte d’Ivoire with US$4.6bn in bond proceeds, 36% of market activity, followed by Nigeria and Senegal. Citi took the top spot in the SSA bond ranking for Q1 2018 with 24% market share. Syndicated lending fees declined, falling to $12.7m down 66% from Q1 2017. ING ranked first for syndicated loans.

Fees from underwriting in debt capital markets were $38.4m, the top value since Thomson Reuters started keeping these records in 2000, and up from $19.4m during Q1 2017.

European Bank for Reconstruction and Development explores Africa expansion

The European Bank for Reconstruction and Development (EBRD), a top backer of capital markets development, is debating new expansion into sub-Saharan Africa and new parts of the Middle East and raising its lending by as much as a third from some EUR9.5 billion euros ($11.7 bn) at present. According to this story on Reuters.

Sir Suma Chakrabarti, President of the EBRD since 2012, said in an interview: “The debate is starting with our shareholders: ‘Would you like us, gradually, incrementally to go to a few more places maybe in sub-Saharan Africa in particular?’” He stressed that it was only the start of a discussion and no decision would be made soon.

The Bank is owned mainly by Western governments and was set up in 1991 to invest in the ex-communist economies of eastern Europe but has expanded rapidly since 2008 and operates in more than 30 countries from Morocco to Mongolia. If shareholders approve at a meeting in May in Jordan, he said analysis could take a year and a final green light could be given at its 2020 annual meeting.

New countries of operation would have to be democracies or at least committed to becoming a democracy, and they must also aim for the kind of market-based economies that the development bank has always focused its efforts on.

The plan to move deeper into Africa meanwhile could dovetail with going into more countries in the north of the continent such as Algeria, or in the Middle East such as Iraq or Libya.

One motivation for expansion is to reduce concentration risks, with much of EBRD investment currently going into 5 countries, led by Turkey, Egypt and Ukraine, all of which have economic and political challenges. According to the interview, even in EBRD “traditional heartlands like Hungary and Poland attitudes are shifting away from its principles”.

London Stock Exchange appoints David Schwimmer as CEO

David Schwimmer, CEO of the London Stock Exchange from 1 August.

The London Stock Exchange has appointed 49-year-old David Schwimmer as its new CEO, starting on 1 August. He has been working for investment bank Goldman Sachs for the last 20 years. The news was released in an LSE press release on 13 April.

He replaces Xavier Rolet, who left the LSE in November as part of a governance crisis sparked by 5% shareholder TCI Fund Management. Since then David Warren has run LSE as interim chief executive and he will return to his job as LSE’s chief financial officer.
Schwimmer, based in New York, is the head of Goldman Sachs’ market structure business and metals and mining businesses.

Schwimmer’s career at Goldman Sachs includes: advising exchanges and stockbrokers, working as chief of staff to chief executive, Lloyd Blankfein, when he was the bank’s chief operating officer, jointly running the bank’s business in Russia (2006-2009) and then becoming head of metals and mining in 2011. He returned to advising exchanges in 2017 as he added the role of the head of market structure.

According to the LSE Chairman, Donald Brydon, in the press release: “David is a leader with great experience in the financial market infrastructure sector, which he has been closely involved in throughout his investment banking career, as well as capital markets experience in both developed and emerging markets. He is well known for his robust intellect and partnership approach with clients and colleagues alike.”

A key task will be to manage the Brexit transition, and defend the LSE’s position as the world’s biggest clearing house for derivative transactions against competition from European exchanges, particularly Germany’s Deutsche Börse. LSE controls London Clearing House (LCH), which processes about three-quarters of the €1 trillion-a-day ($1.2trn) clearing market for derivatives, acting as a middleman between buyers and sellers of complex contracts.

He has extensive experience in mergers and acquisitions and will be able to buy new companies in line with LSE strategy. According to the Financial Times Rolet had turned the LSE into a “£15bn ($21bn) European powerhouse via a string of deals”. A merger with Deutsche Börse AG failed in 2017 and there has been speculation that US group Intercontinental Exchange could bid for LSE, although ICE says that one issue is the UK’s future outside Brexit. Chicago Mercantile Exchange has also been described as a potential bidder.

It quotes Bill Brodsky, former chief executive of Cboe Global Markets: “He’s a very articulate, very intelligent, very engaging personality… David has a deep global markets background and is extremely knowledgeable about the industry. He is eminently qualified to lead London Stock Exchange Group.”

The LSE says Schwimmer will be paid £775,000 ($1.1m) plus a bonus opportunity of up to 225% and will receive £1.05m ($1.5m) to make up for not getting his 2018 bonus from the US investment bank, plus other incentives. He is a graduate in English from Yale and with a JD degree from Harvard Law School. His passions are baseball (Mets) and outdoors, according to Bloomberg.

Top learning on the future of African exchanges – BAFM seminar this week 19-20 April

The 7th Building African Financial Markets (BAFM) seminar has a top lineup and tomorrow (17 April) is the last day to register The seminar is part of the annual programme of capital markets development and synergies of the African Securities Exchanges Association and is also backed by the World Federation of Exchanges. It is hosted by Nairobi Securities Exchange, will be on 19-20 April at the Villa Rosa Kempinski Hotel in Nairobi.

Leading the programme will be William Ruto (Deputy President of Kenya), Geoff Odundo (CEO, Nairobi Securities Exchange), Samuel Kimani (Chairman of the Nairobi SE), Oscar Onyema (President of ASEA and CEO of the Nigerian Stock Exchange), Paul Muthaura (CEO of the Capital Markets Authority of Kenya).

Topics are focused on market structures, innovation, new technology and linkages, including top international speakers:

• Adaptive innovation and the blueprint for orderly markets in Africa – Siobhan Cleary (Head of Policy and Research, World Federation of Exchanges) and Stebbings Archie (Principal, Oliver Wyman)
• Building blocks for innovative markets: effective risk management for clearing and settlement, a CCP in a box – Stuart Turner (Founder, Avenir Technology)
• Building new markets in a frontier economy and the impact on indigenized solutions: The Kenyan experience – Terry Adembesa (Director, Derivatives Markets, Nairobi SE)
• Linking African exchanges organically – Selloua Chakri (Managing Director, SCL Advisory)
• Building blocks for innovative markets: A guide for managing cyber risk – Joseph Tegbe (Partner and Head of Technology Advisory at KPMG, Nigeria)
• FinTech as an enabler for sustainable development: An innovation showcase – Panel with moderator Catherine Karita (Executive Director at NIC Securities), Farida Bedwei (Co-Founder and Chief Technical Officer, Logiciel Ltd), David Waithaka (Chief Strategist at Cellulant Kenya), Candice Dott (Head of Market Development and Customer Experience across Africa, Thomson Reuters), Alex Siboe (Head of Digital Financial Services at KCB Bank Kenya) and Julianne Roberts (F3 Life)
• RegTech: Leveraging technology in the effective risk management and regulation of African capital markets – Michele Carlsson (Managing Director, Middle East and Africa, Nasdaq)
• Effective financial education: The role of emerging technology in contemporary Africa – Abimbola Ogunbanjo (Managing Partner, Chris Ogunbanjo & Co.)
• Financial innovations in SME financing: Opportunities for African MSMEs – Sofie Blakstad (CEO, Hiveonline)
• Disruptive technologies reshaping the future of African financial markets: M-Akiba – Irungu Waggema (Head of IT, Nairobi Securities Exchange)
• Impact of EU Regulation on African Capital Markets (EMIR, BMR, MIFID II, GDPR) – Anne Clayton (Head of Public Policy, Johannesburg Stock Exchange)
• Financing sustainable development: Product and market innovations – Anthony Miller (Coordinator at the Sustainable Stock Exchange Initiatives)
• Disruptive technologies: Blockchain – the future of finance or a flash in the pan? – panel with moderator Ade Bajomo (Executive Director, Information Technology and Operations, Access Bank), Reggie Middleton (CEO and Founder of Veritaseum), Abubakar Mayanja (MD of ABL), Adriana Marais (Head of Innovation SAP Africa) and Samuel Maina (Research Scientist at IBM Research Lab Africa)

It’s a key gathering for Africa’s securities exchanges and key learning for all interested in the future of capital markets and their role in African development. For more information and for bookings, rush to this registration link.

BRVM investment open days – 14 March Johannesburg

BRVM in Abidjan (photo Tom Minney African Capital Markets News)

One of the world’s most successful regional stock exchanges, linking eight West African countries with a stable currency and fast growth, will come to South Africa to outline investment opportunities. The Bourse Régionale des Valeurs Mobilières (BRVM), headquartered in investment destination Côte d’Ivoire, will meet South African fund managers and market experts on March 14 at “BRVM Investment Days in Johannesburg”. This exclusive investor forum is part of a global 2018 BRVM roadshow.

Edoh Kossi Amenounve, CEO of the BRVM, will outline strategic developments on the exchange, including: investor-friendly trading and disclosure, working with London and Casablanca stock exchanges to boost growth companies in the region, and a board for mining companies after big discoveries in the region.

Other speakers are:
• Dominic Bruynseels, Regional CEO West Africa for Standard Bank, which sees the potential for growth in the West African Economic and Monetary Union (WAEMU) region and opened its first branch in Côte d’Ivoire in August 2017
• Samira Mensah, Associate Director of Standard & Poor’s Global Ratings, with an overview of banks in the region as well as fixed income and other securities
• Michael Barnes, Head of Sales and Trading at stockbroker African Alliance, one of the leading South African stockbrokers for trading on the BRVM exchange.

The speakers will share insights on the economies – the IMF forecasts growth at 6.5% or 6.6% a year across the region until 2021 – and on sectors, shares and key investment themes. It is a unique opportunity for South African institutions to learn more about the potential of Africa as regional links become stronger.

WAEMU combines eight West African countries with a population of 110 million: Benin, Burkina Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo. WAEMU shares a single currency, the CFA franc, which is linked to the value of the euro (EUR), and a single central bank and capital markets regulator.

Mr Amenounve says: “South African investors are taking increasing interest in the opportunities in Africa as the world’s long-term growth story. The West African region offers fast, diversified growth and interesting lessons on regional development and economic linkages. In our countries, demographics, development, technology and increasing productivity all offer opportunities and the regulated exchange market offers liquidity and support to investors.”

The BRVM has 45 listed companies and is Africa’s sixth biggest exchange in terms of market capitalization with $12.5 billion in shares listed at end December 2017, plus 32 government and corporate bonds and five sukuk. To register online, please visit www.brvminvestmentdays.org.

Contact person for all event-related questions: Ms. Aziza Albou Traore ceo@azmediaagency.com Tel: +1 646 3772178
For any event-related or media enquiries, please contact: Ms. Glynis Loizeau: glynis@azmediaagency.com Tel: +33-6-83-48-75-85

This event is organized by AZ Media Agency www.azmediaagency.com
Twitter @BRVM_UEMOA #BRVMInvestmentDays

African Economic Outlook 2018 flagship report is released

“African economies have been resilient and gaining momentum. Real output growth is estimated to have increased 3.6% in 2017 and to accelerate to 4.1% in 2018 and 2019″ says Akinwumi A. Adesina, President of the African Development Bank Group. “Overall, the recovery of growth has been faster than envisaged, especially among non-resource–intensive economies.”

The latest edition of African Economic Outlook 2018 was released yesterday, and contains a lot of excellent analysis and short- to medium-term forecasts on the evolution of key macroeconomic indicators for all 54 regional member countries.

The staff economists of African Development Bank present their analyses of African economic development during the previous year and near term, and on the state of socioeconomic challenges and progress made in each country.

According to Adesina, global institutional investors and commercial banks manage more than $100 trillion in assets and for some of that they search for high returns, some of which could support African investments. Key challenges for Africa are managing the demographics, with a fast-growing young population, by creating more jobs and reducing poverty. Policy-makers can create structural transformation and economic diversification by deeper investment in agriculture and developing agricultural value chains to spur modern manufacturing and services.

Top priority is a shift to growth that absorbs labour; another to invest in human capital, particularly in entrepreneurial skills of youth, to facilitate transition to high-productivity modern businesses. Macroeconomic policy should be prudent and aim to ensure external competitiveness, blending exchange-rate flexibility, mobilizing domestic revenues including tax, and judiciously managing demand and rationalizing public spending.

Infrastructure need soars to $130-170bn a year

The year’s theme is infrastructure. The Bank says that new research shows that Africa’s infrastructure requirements are $130–$170 billion a year, much higher than the long-accepted figure of $93bn a year. According to Adesina: “African countries do not need to solve all their infrastructure problems before they can sustain inclusive growth. They should focus on how best to use their scarce infrastructure budgets to achieve the highest economic and social returns.

“Infrastructure projects are among the most profitable investments any society can make. When productive, they contribute to and sustain a country’s economic growth. They thus provide the financial resources to do everything else.

Changes to 2018 AEO

The report is great reference material for researchers, investors, civil-society organizations, development partners and many others. The African Development Bank has made some changes, to make this key document even more useful:
1. Earlier release date – mid-January each year – so that the Bank, as a leading African institution, will be among the first to provide headline numbers on Africa’s macroeconomic performance and outlook.
2. To boost advocacy and dialogue, the 2018 AEO is being shortened to 4 chapters and 54 country notes in about 175 pages, down from more than 300 pages in previous years.
3. Regional economic outlooks for Africa’s five subregions. These self-contained, independent reports focus on priority areas of concern for each subregion and provide analysis of the economic and social landscape. They also highlight issues of pressing current interest.

The chapters of the report cover 1: Macroeconomic performance and prospects; 2: Growth, jobs and poverty in Africa; 3: Africa’s infrastructure, great potential but little impact on inclusive growth; 4: Financing Africa’s infrastructure, new strategies, mechanisms and instruments. Boxes include China’s 3 lessons for Africa, the Africa50 Infrastructure Fund, PPP dos and donts. Tables include real and per capita GDP growth 2009-2019.

Download your copy in English, French or Portuguese here

Africa’s top stock exchange performance in 2017

Despite a great year on the main US markets in 2017, many African stock exchanges offered USD investors a higher return. Biggest gain in USD was the Malawi Stock Exchange index, which climbed by 56.0%. It was among 6 African exchanges that outperformed the tech-heavy Nasdaq, which scored a strong 28.2% gain in 2017.
Other leading African stock exchange indices included Ghana, up 43.8%, Uganda up 30.7%, Mauritius 29.9% and South Africa JSE All Share up 29.7%.
The Zimbabwe Stock Exchange Industrial Index climbed 124.2%. However, most analysts rebase the market using the Old Mutual Implied Rate (OMIR), comparing the price of Old Mutual shares listed on the Zimbabwe Stock Exchange with the same shares on the London Stock Exchange to act as an inflation adjustor, since local dollar values do not reflect international dollar values. On the OMIR basis, the ZSE still gained a creditable 28.5%.
Other leading African markets such as Nigeria (Main Board index up 25.4%, but still to gain its previous highs of April 2014 and 2008) and Egypt’s EGX 30 (up 24.1%) also delighted investors.

Source – index data from Bloomberg and stock exchange websites compiled by Securities Africa

Stockbroker Securities Africa (www.securitiesafrica.com) shed light on which of the major counters helped drive 2017 index performance:
• Botswana: Botswana Insurance Holdings Ltd (+14.2%), Barclays Bank of Botswana (+31.1%) and Choppies Enterprises (+9.0%) led the gains in the major names in Botswana.
• BRVM: Whilst Sonatel closed the year 11.29% higher, Ecobank Transnational Inc closed 17.8% lower in USD terms. The currency was also weaker (-10.44%) for the year, contributing to the decline in the USD value of the Index. This was the only Index that closed in negative territory in 2017.
• Egypt: Eastern Tobacco was the stand-out performer, closing the year up 229.3% in 2017.
• Ghana: Standard Chartered Bank was the main driver behind the GSE performance in 2017, gaining 95.7% in USD terms.
• Kenya: Telecom giant Safaricom closed the year 40.2% higher taking responsibility for a large part of the index performance.
• Malawi: Illovo Sugar (+50.4%) and Telekom Networks Malawi (+110.2%) were the two major movers in 2017 in USD.
• Mauritius: Heavyweights MCB Group and SBM Holdings gained 35.5% and 20.5% respectively.
• Morocco: The two banks, Attijariwafa Bank (+28.5%) and Banque Central Populaire (+14.3%) were the big name gainers in Morocco.
• Namibia: Namibia Breweries was the major contributor to the strong local index performance as it gained 55.1%.
• Nigeria: Dangcem (+15.4%), Nestle (+67.7%), Guaranty (+48.2%), Zenith (+55.4%) and Stanbic (+130.9%) contributed to a strong index performance in 2017.
• Rwanda: Bank of Kigali gained 26.7% to help the index close in the positive band.
• S. Africa: Naspers and Glencore led the big name gainers finishing the year 88.8% and 49.3% higher in USD terms.
• Tanzania: Tanzania Breweries and Tanzania Cigarette were the major name strong performers, gaining 20.2% and 52.6% respectively.
• Tunisia: Banque Internationale Arabe de Tunisie closed 31.4% higher and Attijari Bank followed suit, gaining 26.6%.
• Uganda: Stanbic Uganda (+9.9%) and Jubilee Holdings (+17.3%) were the major names that helped the index gain significantly during the period.
• Zambia: Standard Chartered Bank (+58.5%), Zambian Breweries (+13.0%) and Copperbelt Energy (+64.5%) were the major drivers behind the Lusaka Stock Exchanges performance.
• Zimbabwe: Using the Old Mutual Implied rate, the market closed 28.5% higher for 2017. The two major names in Zimbabwe, Delta and Econet, were up 77.8% (17.8% OMIR) and 216.7% (49.7% OMIR) respectively. British American Tobacco which closed the year 136.1% (31.2% OMIR) higher was also one of the best performing names.

Highest ranked African securities exchange websites

Which African stock exchange website gets the most traffic? According to www.Alexa.com, a respected benchmark of web traffic, in rankings today (9 January) the Nigerian Stock Exchange website (www.nse.com.ng) was ranked #83,112 busiest website in the world and #826 website in Nigeria. It has great user engagement, with 3.1 page-views per visitor and each visitor spends an average of 5 minutes 39 seconds on the site.

The next busiest African securities exchanges websites were Egyptian Exchange (www.egx.com.eg, climbing to rank #124,904), South Africa’s JSE (www.jse.co.za, #157,543), on a slow decline since June 2017 but also good user engagement, West Africa’s regional BRVM exchange (www.brvm.org, ranking climbing recently to #219,284) covering eight markets and Nairobi Securities Exchange (www.nse.co.ke) with ranking of #297,989.

(photo credit Nigerian Stock Exchange)

Last month in a press release from the Nigerian bourse Olumide Orojimi, Head, Corporate Communications, NSE, said: “We are delighted to see this increase in traffic to our website as it means that we are making the Nigerian capital market easily accessible to investors who are increasingly residing online.

“At the NSE, we are committed to bridging the information gap between the Exchange and market participants, knowing the high correlation between market information (stock market prices, market data, corporate actions and news) and decision making. We are glad our website is also helping us to achieve this.

The NSE has upgraded its website to be more friendly to users with mobile phones and tablets, and has boosted content and improved layout and navigation. Orojimi says: “The revamp was fuelled by feedback from users that wanted certain high demand pages easier to navigate and some key changes implemented. For example, using analytics from visits and usage of our website, we added filter functionality to the corporate disclosure page to enable users browse through results filed by listed companies easily. Our online visitors can now experience a more vibrant and seamless view of our offerings”.

Happy New Year 2018 to our readers

Best wishes to all the readers of African Capital Markets News for 2018. May the year be happy, busy, successful and prosperous for Africa’s securities exchanges, stockbrokers, investment bankers, private equity practitioners and professionals and all those developing the impact investing and financial inclusion space.
We have updated our 2018 listing of conferences, see conferences and events page. Kindly let us know of any events we are missing or should be added.