March 12th, 2015 by Tom Minney
Paul Bwiso, the former general general manager of stockbroker Dyer and Blair Investment Bank of Uganda, has big plans as new CEO of the Uganda Securities Exchange. His challenges include a challenger exchange, plans to win more listings, more automation, hopes to demutualize the exchange.
Low liquidity in the Ugandan capital market has not deterred a rival exchange, ALTX Uganda, which is currently testing and plans start trading from 1 May. ALTX was founded by Joseph Kitamirike, a previous CEO of the USE. Last month ALTX announced backing from GMEX Group which is offering an “exchange in a box” hosted trading solution and has backing from Deutsche Börse AG and Forum Trading Solutions Limited through its investment vehicle.
Paul Bwiso, the new USE chief executive officer. Photo by Mark Keith Muhumuza
According to a recent interview in Uganda’s Daily Monitor newspaper, Bwiso, who has been on the exchange’s governing council, says: “My plan is to correct the way we have been doing things… We know the problem with the way things have been done. We shall review some of regulations in order to open up the market.”
He is confident on ALTX: “They were only putting us on the edge but I believe we are in a stronger position.”
He admits the market has struggled to attract listings while Ugandan companies are also seeking to raise money: “We’ll have to sell the potential of the main market segment, growth enterprise market segment and corporate bonds. In about 18 months, if we can fix the system here, then I see about 7 listings,” he said.
Market capitalization on the USE was UGX 28.6 trillion ($9.8 billion) including dual-listed stocks, according to today’s (12 March) market report. A recent news report put the value of 8 local stocks at $1.27bn, dominated by Stanbic Bank Uganda with $600m of market capitalization (measured by number of shares multiplied by closing share price). Power distributor Umeme attracted a lot of interest when it came to the market in November 2012 and since then the share price is up from UGX340 to UGX500 today.
So far only 40,000 Ugandans have registered as shareholders, according to the 2014/15 national budget speech, out of a population of 37.6 million. Liquidity both to invest and to exit have been some of the major worries.
It took the USE governing council more than a year to find the right successor to Kitamirike, according to the report.
September 10th, 2014 by Tom Minney
The well-respected CEO of the Nairobi Securities Exchange (www.nse.co.ke), Peter Mwangi, is to take up a new job as Group CEO at financial services company Old Mutual Kenya with effect from 1 October. Mr Mwangi has served at the NSE since 24 November 2008 and his contract was renewed in 2011 but according to regulations a CEO of an exchange can only serve 2 terms.
Mr Mwangi and his top team have made huge progress in boosting the activity and standing of the NSE. Kenya’s Standard reports that major strategic projects implemented while he was CEO include:
- Trading treasury bonds on the automated trading system,
- Reducing the trading and settlement cycle to four days
- Demutualizing the exchange and selling its shares to the public.
Local press reports that in a statement sent to newsrooms Mr Mwangi says he expects the bourse to build on the foundations it set to be one of the most efficient and well capitalized exchanges on the continent.
Old Mutual continues in expansionary form in Africa, and an analyst reports: “Old Mutual has been accelerating its growth agenda within the African continent, expanding its footprint both organically and inorganically and Mr. Mwangi’ s appointment comes at an exciting time for the Group as whole as he will be in charge of spearheading Old Mutual agenda in this region. In 2013, the Group announced that it plans to invest $500M in East and West Africa, and we have already seen this as the Group has established operations in Nigeria and Ghana. In Kenya, the Group acquired Faulu Kenya which is in the process of been integrated in Old Mutual’s operating model.”
Tavaziva Madzinga, Old Mutual Africa Chief Operations Officer, was quoted on CapitalFM: “With the Group’s focus on growing in East Africa, and Kenya in particular, Mwangi will guide the delivery of Old Mutual’s commitment to provide affordable insurance and banking solutions to millions of Kenyans.”
Peter Muthoka, Chairman of the Board of Directors of Old Mutual was reported as saying: “The importance of our customer cannot be emphasised enough. We are dedicated to our vision of becoming our customers’ most trusted financial partner and we look forward to working closely with Mr Mwangi in serving Kenyans to empower them financially to achieve their goals.”
According to his profile on Businessweek: Before joining the NSE Mr Mwangi had been CEO and Managing Director of Centum Investment Company, (formerly, ICDC Investment Company until it changed its name in 2008) from December 2004 to October 15, 2008. He had joined been company secretary from 2000 to 2004 and has also been Investment Manager. His working career began as a Technical Officer in the Kenya Air Force, where he was involved in the maintenance of avionic communication systems and the development of the Air Force’s information and communication technology (ICT) strategy.
His degree is BSc in Electronic Engineering from University of Nairobi. He is also a Member of Certified Public Accountant of Kenya (ICPAK) and the Institute of Certified Public Secretaries of Kenya (ICPSK) and is a Chartered Financial Analyst.
He serves as a Director of UAP Insurance Sudan Ltd., Kisii Bottlers Limited, Mount Kenya Bottlers Limited, Rift Valley Bottlers Limited, Eveready Batteries Limited, KWAL Holdings Limited and Central Depository & Settlement Corporation Limited. He serves as a Director of Nairobi Stock Exchange Ltd., and Wildlife Works Inc. He is also a member of the Institute of Directors (IOD).
May 5th, 2011 by Tom Minney
Standard Chartered Bank (www.standardchartered.com) has appointed Diana Layfield as Regional Chief Executive Officer, Africa, with effect from 22 June 2011. The bank has operated in Africa for over 147 years and has over 160 branches in 14 African countries and over 6,000 staff. Diana succeeds Mike Hart, who becomes Vice Chairman for operations in Africa.
V. Shankar, CEO, Europe, Middle East, Africa and Americas, said in a press release: “This is a hugely exciting time for our fast growing business in Africa. Diana and Mike will ensure we are well placed to take advantage of the many opportunities we see, including from deepening economic and trade relationships with Asia.”
Diana is currently Group Head of Strategy and Corporate Development – acquisitions, alliances, mergers and disposals – since 2009 across the bank’s global operations, and has previously held senior management roles since she joined the bank in 2004 as Chief Operating Officer for Wholesale Banking and as Group Head, Global Corporates.
Before that she was CEO of Finexia Ltd, a technology company providing outsourced services and software for the commercial finance industry (2000-2004), worked for McKinsey & Co (1995-2000), and piloted relief planes for the International Committee of the Red Cross / UN in Africa (1998-99). She was educated at the University of Oxford and Harvard University
Mike has led Standard Chartered’s franchise in Africa since 2006, delivering record results while growing our business, and has also been an active proponent of the Bank’s community programmes across Africa. He has been with the bank for 23 years and is stepping down from executive responsibilities.
May 4th, 2011 by Tom Minney
Pan-African private equity specialist Emerging Capital Partners (www.ecpinvestments.com) today (4 May) announced that Andrew Brown is appointed Chief Investment Officer (CIO) in a newly created position. He will join the investment committee of $613 million ECP Africa Fund III, which the company claims is the largest private equity fund for growth equity in Africa. The fund closed in June 2010 and has so far made 4 investments during 2010 in financial services, industrials and telecom/cable TV sectors across Africa.
Mr Brown will be based in ECP’s Paris office and will oversee and implement ECP’s investment process and strategy across its 6 active funds.
Vincent Le Guennou, co-founder, Managing Director and co-CEO of ECP, said in a press release: “Africa is one of the fastest-growing regions in the world and ECP is dedicated to seizing those opportunities. Andrew’s appointment adds operational experience, support and oversight to the investment process. Andrew has been operating in our core markets for well over a decade and is well suited to lead ECP’s investment process.”
Mr Brown said: “ECP has already invested more than US$1 billion through 50 investments in a variety of sectors across Africa in its decade of operation. I’m looking forward to working with the pre-eminent pan-African private equity firm and its outstanding team.”
He joins ECP from Amundi Private Equity (formerly Société Générale Asset Management Alternative Investments), which he joined in 2006 as CIO for the Kantara Fund, a multi-sector fund targeting private companies in North Africa, securing over €150m in funding and recruiting a North African investment team.
Mr. Brown first worked in emerging market private equity in 1998 when he joined CDC in London specializing in telecoms and infrastructure investments in Africa, Asia and Latin America. He moved to Cairo in 2001 to establish CDC’s Egyptian office. Following the creation of Actis from CDC he was the Actis Egypt Country Manager.